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Baidu, Inc. Message Board

  • pope198live871 pope198live871 Nov 21, 2012 12:46 PM Flag

    Baidu announced money for war chest

    Who are they going to war with? Seems to me they should be talking acquisitions, not law suits.! Any one have an idea whats up?

    Sentiment: Strong Buy

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    • To rollover more expensive debt for cheaper debt and possible acquisition/acquisitions.

      All well and good but in the mean time the company is sitting on a pile of cash just collecting dust in low interest vehicles doing nothing for shareholders. Slowing organic growth (China ad headwinds) dictates that an acquisition might very well be in the cards only the better play would be to figure out who the target is and invest in that direction.

      Any immediately accretive acquisition sizeable enough to move Bidu's rev/earnings needle will come at a high premium cost and that means the street reaction to such a deal might add to the downward pressure longer term benefit or not.

      At the very least, the offering does nothing to reverse the current trend in the stock.

      In fairness, the valuation looks pretty reasonable but when the street sours on anything we've seen over and over again that "it doesn't much matter"!


    • BIDU may buy SINA soon.

213.31-0.92(-0.43%)Mar 6 4:00 PMEST

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