It's my belief that if the bottom was going to fall out on Baidu, today would have been the day. Chinese indexes got hammered last night and the bird flu scare created much Chinese uncertainty over the weekend. To start the day US indexes were red yet Baidu was green. Also, The Street met with Baidu last month and remains bullish on the stock and has stuck to their guns on their 120+ price target. I believe the stock will run up to earnings.... If you're short it's time to cover. If you're on the sidelines it's time to buy.
PS - 84.32 resistance surpassed by EOD.
here we go.... go read the street's press release. The analyst's met with baidu brass in March and remain bullish on the stock. They have reiterated their buy rating with a 120 plus estimate. All the clowns in here can go eat crow.
It should be a nice day for Bidu tmrw. The stock is way oversold and the downward trend should reverse as we move towards ER. Also, Nomura met with Baidu brass in March and they remain bullish. After the meeting they reiterated a buy rating. No question China equities have been squeezed bit Baidu is so overdone it's silly. Those who hold should do well in the short, intermediate and long term.
I expect the stock to break $90 this week and to land between $94-95 next week. The technical have turned and a bottom has been established. Any good news good accelerate momentum. This stock is clearly on sale and volume should start to pickup as shorts cover and longs enter as the uptrend continues.
The low volume over the past few days is a good indicator that the stock has bottomed and is ready to retrace. People are no longer dumping the stock in fear. However, there has been no substantiative news on the company in recent days thus the buyers have not flooded in. My prediction is soon the stock will experience a short squeeze which will pop the value. Shortly after the short squeeze hopefully a positive earnings report will propel the stock into a sustainable growth curve. I expect the coming days for Baidu shareholders to be an exciting time. Those who bought in this oversold panic should be well rewarded.
The short squeeze is coming. Baidu seems to have bottomed. I view today's volume as a good sign. These two factors should pull the shorts out of hiding and propel the stock to a nice stepup. If you are long your patience should soon payoff.