could not agree more, but where do you see "fair value" on BIDU? imho, it is about $65. Why $65? Even if BIDU never figures out mobile (high chance of that), it should still grow about 20% per annum, based on still low internet penetration and (eventually) growing economy. With a 0.5 PEG (sorry, it's China) that gives you $60. They have about $10 per share in cash after debt, but since they are likely to blow it with acquisitions, i would only give them credit for half of that. presto, a $65 target. I am going to stay short until $70 or so, then will go into neutral, and be a buyer in the mid 50s.
20% growth of Baidu's revenue is huge especially against Qihu's piddly revenue. Baidu will dominate the search engine market for the foreseeable future. I'm convinced the competition(Qihu?) out there is not causing Baidu to drop since both Qihu and Google has also dropped considerably lately. Baidu(and others) are receiving less per customer presumably because expectations were too high. Still, think they can reach 95 by the end of month.