So now that we are all talking "splits" lets get to the real FACTS about how Baidus split is affecting their valuation on several different metrics and how over valued this company has become.Below you can understand why Wall Street needed this stock to do such a split so the average fool retail player gets duped into thinking how cheap Baidu is and How much growth will be harvested for years to come.This stock has discounted GROWTH WELL ABOVE 99% OF THE COMPANIES ON THIS PLANET FOR AT LEAST THE NEXT 5-7 YEARS HENCE THE REASON THE STOCK IS STUCK IN THIS SIDEWAYS/DISTRIBUTION/HEAD AND SHOULDER CHART FOR THE LAST 12 MONTHS DESPITE THE TREMENDOUS "GROWTH" SPEWING OUTTA THE MOUTH OF ROBIN LI...All growth has been discounted already!!!!!!
Please tell me DEFINITIVELY where the cash Bidu has is located and verified.If you can than you are smarter than everyone else interested in these VIE structures.This cash is NOT TIED NOR BOUND TO THE SHARES IN BIDUS ADR! The company officers can take and use this cash for their personal discretion without any backlash from anyone hence the reason the FBI<DOJ<SEC and PCAOB are looking into these companies!
Pre split numbers/Stock price approximately 1315.00 P/E would be 438 (ttm) P/E would be 256 for 2012 (est) P/S 2011 at 18 P/S 2012 at 13(est) PEG FOR 2011 5.4 PEG FOR 2012 5.1
I know Ill catch flack from the Wizard here however the above are facts that no one can dispute.
CONCLUSION:Short stock from 155 with upside calls to protect any bogus run from here to 145!!!!!
Also, Baidu has traded as long as and has been in business as long as Google but yet has yet a fraction (1/10th) of their EARNINGS.Splits only manufacture a clean looking stock however does not produce the real thing!!!!
You are a complete and utter joke. You know nothing about stocks or financial numbers. When you split a stock 10-1 you adjust ALL other numbers by 90%. I cant believe you had the balz to post this.
The .89 cent quarterly profit estimate would actually be $8.90
The Peg Ratio is the p/e ratio of 50% divided by the growth rate of 90%.
Until the growth of this company slows to 25% this stock will continue to be UNDERVALUED. Whether its a good buy here is one's perception but from a valuation the peg ratio IS TRULY .54!!!!!!!! PLEASE GO BACK TO SCHOOL ROOKIE