I see more posts by shorts than any other types. Best contraniant indicator. Great valuation, nonsense negative analysts, best China play, liquid cap for institutions. Break out soon. I expect it above $110 before earnings and $130 afterwards.
I remember GOOG was lingering around $550 a year or so ago with all the same nonsense concerns. Then it broke out abruptly.
Yes, everything you said is extremely accurate! The analysts are all wrong and have always been on this stock; especially Credit Suisse and Barclay. You have to wonder where they find these people? I think your predictions are accurate; but I am not sure if it will get to $130 that soon. In my opinion; the stock today is worth about 140-150 if you slap a PE of 35-40 on the stock...which I think is reasonable. BUT,Just too much negativity. They need more clarity on Mobile Monetization and they need to demonstrate they can make money off the CLOUD. I am not worried about QIHU - That is the definition of not very much competition and BIDU is so far advanced technologically..... and from a content position, that it is comparing a Mercedes to a Chevy. Have held for the past 4 years and expect to continue to hold. I would not be surprised to see BIDU double in the next year or so. Great company, and well positioned to dominate.
China data indicates stronger economy and BIDU is the major beneficiary. Export grew over 14% Y/Y vs. the expectation of 4%!
EPS of BIDU is $6 for 2013. A P/E of 25 puts the stock at $150. BIDU's growth rate is still in the 30%+.
I never think QIHU is relevant. Also the concern of mobile is overblown. Ads money moves from traditional to internet. If not spent on mobile, it would be spent on other forms of internet. It is not such a problem that BIDU does not have the mobile technology but its competitors have.
Not a big fundamentalist...but I suspect what you are saying is true...I just follow the money. It looks like at the very least we test 105. When I take a short position and you get the gift of a downgrade I take the money and run. The price action today was definitely bullish and expect an increase in volume soon. Let's see what happens?.. I never embrace my own scenario fully I let the market decide what it's worth.