Baidu.com posts
FeedPosted Jan 19th 2010 1:40PM by Brent Archer (RSS feed)
Filed under: Major Movement, International Markets, Bad News, Management, China, Options, Technical Analysis
Baidu.com (
BIDU -
option chain) stock is trading lower today after
the company's chief technology officer, Yinan Li, has resigned for undisclosed personal reasons. With this departure less than two weeks after Chief Operating Officer Peng Ye's resignation, analysts and traders alike are speculating that Li's resignation is related to the rollout of a new advertising tool that has given the company trouble. The WSJ (
supscription required) also speculates today that BIDU shares may have over-reacted to the recent Google (
GOOG) - China showdown. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BIDU.
This morning, BIDU opened at $450.00. So far today the stock has hit a high of $452.02 and a low of $429.09. As of 11:55, BIDU is trading at $435.50, down $32.18 (-6.9%). The chart for BIDU looks neutral while
S&P gives BIDU a 3 STARS (out of 5) hold ranking.
Continue reading Baidu.com Chief Technology Officer Resigns
Posted Dec 31st 2008 10:30AM by Bryan Perry (RSS feed)
Filed under: India, China, Newsletters, PetroChina Co Ltd ADR (PTR), Huaneng Power Intl ADS (HNP), China Life Insurance ADS (LFC), China Mobile Limited (CHL)
With all the media buildup leading up to the Olympic Games in Beijing this past summer, just about everyone and their brother was bullish on the China/India emerging market theme.
"Chindia," as it was coined, was supposed to be the next great economic wonder.
The belief that these markets did not need American demand swept international investment circles. Forecasts of double-digit GDP growth continuing for the next several years became the mantra of emerging market funds, and Wall Street analysts got caught up in the commodity bubble, which burst a month before the Olympic torch was lit.
The widely held belief of global economists was that these two sleeping giant economies would lap America in a matter of a few years, as per all the economic extrapolations and white papers published leading up to the Summer Games.
Stocks like Baidu.com (NASDAQ: BIDU), China Mobil (NYSE: CHL), China Life (NYSE: LFC), Huaneng Power (NYSE: HNP), PetroChina (NYSE: PTR), Infosys (NASDAQ: INFY) and Reliance Industries (not listed) seemed bulletproof given the revenue and earnings models being floated by the Chindia bulls.
Continue reading Best Trades of 2008: #1 Shorting 'Chindia' the day after New Year's
Posted Dec 15th 2008 12:55PM by Elizabeth Harrow (RSS feed)
Filed under: International Markets, Analyst Reports, China, Analyst Initiations, Options, NASDAQ
Analysts at Pali Research today started coverage of Baidu.com, Inc. (NASDAQ: BIDU) with a Sell rating and a $90 price target. The brokerage firm cited "short- to mid-term uncertainties," which it says outweigh current opportunities for the Chinese Internet-search titan.
Chief among those uncertainties is Baidu.com's "controversial" business model. The search engine has recently come under fire for hosting search listings paid for by unlicensed medical and pharmaceutical concerns. Last week, the company added to Wall Street's concerns by slashing its fourth-quarter revenue outlook.
Pali Research joins the majority of analysts with its downbeat opinion of Baidu.com. Zacks reports three Holds, one Sell, and one Strong Sell, compared to just two Buy or better ratings. While the shares have already shed 70.8% year-to-date, Pali's $90 price target suggests that the brokerage firm expects additional downside. This estimate represents a discount of 21.1% to the stock's closing price on Friday.
Despite BIDU's negative price action, option players remain relentlessly bullish on the shares. During the past 50 days, traders on the International Securities Exchange (ISE) and the Chicago Board Options Exchange (CBOE) have consistently purchased more calls than puts on this Internet issue.
With the shares up more than 1% in early trading today, the bullish case for BIDU looks curiously compelling. However, considering the company's cloudy fundamental outlook, it's unclear just how long the shares can rely on round-number support at $110 before succumbing to the effects of gravity once again.
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.
Posted Oct 17th 2008 1:17PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Good news, Industry, Google (GOOG), China, Options, Technical Analysis
Baidu.com (NASDAQ:
BIDU -
option chain) shares are rising with other internet companies after internet giant
Google (NASDAQ:
GOOG)
posted a third-quarter adjusted profit of $4.92 per share, beating analysts' estimates of $4.75 per share. This should be a small positive sign for BIDU, even though the Chinese economy has been missing since the Olympics ended. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BIDU.
BIDU opened this morning at $233.53. So far today the stock has hit a low of $222.13 and a high of $239.49. As of 12:15, BIDU is trading at $237.69, up $22.89 (10.7%). The chart for BIDU looks neutral and
S&P gives BIDU a 3 STARS (out of 5) hold ranking.
For a bullish hedged play on this stock, I would consider a November
bull-put credit spread below the $185 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just one month as long as BIDU is above $185 at November expiration. Baidu would have to fall by more than 22% before we would start to lose money. Learn more about this type of trade
here.
BIDU hasn't been below $198 at all in the past year and has shown support around $200 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BIDU or GOOG. Posted Sep 19th 2008 1:49PM by Brent Archer (RSS feed)
Filed under: Major Movement, Bad News, China, Options, Technical Analysis
Baidu.com (NASDAQ:
BIDU -
option chain) shares are diving today after
the Wall Street Journal reported that speculation is rampant in China that the internet-search company accepted payments from dairy companies to keep negative items from appearing in its search results. BIDU admits that several dairy companies had approached the company, but says it refused all offers to screen negative news. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BIDU.
This morning, BIDU opened at $280.50. So far today the stock has hit a low of $201.15 and a high of $311.30. As of 1:05, BIDU is trading at $293.90, down $11.35 (-3.7%). The chart for BIDU looks neutral and
S&P gives BIDU a 3 STARS (out of 5) hold ranking.
For a bearish hedged play on this stock, I would consider an October
bear-call credit spread above the $360 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in 4 weeks as long as BIDU is below $360 at October expiration. Baidu would have to rise by more than 23% before we would start to lose money. Learn more about this type of trade
here.
BIDU hasn't been above $360 at since May and has shown resistance around $325 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BIDU. Posted Jun 11th 2008 3:05PM by Todd Harrison (RSS feed)
Filed under: Goldman Sachs Group (GS)
Minyanville's top dog, Todd Harrison, dares to ask in public what Wall Street types quietly consider in private. For more insight and ideas, visit www.Minyanville.com.
- If S&P 1340 doesn't hold, you're going to hear a lot of chatter regarding the March lows (S&P 1275) in a hurry. Be prepared. Be very prepared.
- One very savvy soothsayer, who I just got off the phone with, doesn't think we get there. He's looking for S&P 1320-ish as a long side opportunity. Just so you're hearing what I'm hearing as heck, we don't call him "As Good As It Gets" for nothing.
- Moi? Are you talking to me? You know my drill: I've got a pretty sizable ratio bet on (short crude, long oil), which I'm trading around as a function of price, along with some tertiary trading exposure, including Goldman (GS) calls.
- Speaking of taxi drivers, how long do you think it'll be before cabs are allowed to pick up multiple passengers in the Big Apple? That should help with societal acrimony!
- If you looked up "Where there's smoke, there's fire," you'd probably find a picture of Lehman Brothers (LEH)., this thing trades funky.
- I'm seeing a lot of stocks trade "wide," which is to say they're jumping around. That's a recipe for smaller size. Adapt, don't conform.
- Given the amount of typing I do on any given day, do you think I should get finger insurance?
- Baidu (BIDU) trades dry, so you see it.
R.P.
Posted Mar 19th 2008 8:10AM by Laurie Pasternack (RSS feed)
Filed under: Newspapers, Magazines, Yahoo! (YHOO), JPMorgan Chase (JPM), Barclays plc ADS (BCS),
.gif)
MAJOR PAPERS:
- Jarrett Lilien, E-Trade Financial Corporation's (NASDAQ: ETFC) president and COO, who lost out on the CEO job last month to Donald Layton, is going to resign from the online brokerage firm, the Wall Street Journal reported; Layton doesn't plan to fill the position.
- Chinese Internet search firm Baidu.com Inc (NASDAQ: BIDU) is poised for aggressive growth but must also confront a number of obstacles, according to the Wall Street Journal's "Heard in Asia," including a number of lawsuits regarding its music services and a vacancy in the CFO position.
- Alibaba Group, a Chinese Internet company , is in advanced talks with investors to finance its acquisition of Yahoo! Inc's (NASDAQ: YHOO) stake to expand its management independence, the Wall Street Journal reported.
OTHER PAPERS:
WEB SITES:
- Medical supplies boss Michael Mastromarino, accused of stealing the body parts of around 1,000 corpses, has pleaded guilty to several charges in a deal with prosecutors. The BBC News reported that the Biomedical Tissue Services company shipped bones, skin and tendons to tissue-processing companies such as LifeCell Corporation (NASDAQ: LIFC) and Tutogen Medical Inc (AMEX: TTG), which are in turn facing hundreds of civil lawsuits.
Posted Mar 7th 2008 4:30PM by Brent Archer (RSS feed)
Filed under: Analyst Reports, Good news, China, Options, Technical Analysis
Baidu.com, Inc. (NASDAQ:
BIDU) shares are rising after an article in Barron's(subscription required) published Thursday evening
predicted the Chinese internet sector would be quite profitable in 2008. A positive outlook from the respected publication often gives any stock a boost. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BIDU.
After hitting a one-year low of $92.80 in April, the stock hit a one-year high of $429.19 in November. BIDU opened this morning at $241.70. So far today the stock has hit a low of $240.83 and a high of $249.84. As of 12:45, BIDU is trading at $244.40, up $1.98 (0.8%). The chart for BIDU looks bearish and steady, while
S&P gives the stock a neutral 3 STARS (out of 5) hold rating.
For a bullish hedged play on this stock, I would consider a March
bull-put credit spread below the $210 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just two weeks as long as BIDU is above $210 at March expiration. Baidu would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade
here.
BIDU hasn't been below $210 since August and has shown support around $235 recently. This trade could be risky if the this momentum stock has lost its mojo, but even if that happens, this position could be protected by the support the stock might find around $230, where it has bottomed over the past month.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BIDU. Next Page >
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Baidu.com (BIDU- option chain) shares are rising today on news that the company will be releasing its own mobile operating system. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BIDU.
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