Baidu - A Synopsis

Well, I have been watching Baidu since August when it was 68 USD, now it is current almost 88 USD.

You can understand why I am excited. No wait I did not buy any shares lol.

In any case I think I will keep an eye on Baidu and Chinese companies in general (note that so far these are not Chinese companies, these are really companies in China, but list in US - the chinese companies will be listed in the Hang Seng Index).

I will permalink thispost, so do keep up to date or contribute if you can =)



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I will keep this in a log form as it is the easiest to maintain in a single post.

log060923

My thoughts at the moment?

For the past 1 to 2 weeks, Baidu is in the high eighties. breaking the 90 USD mark.

Beware though. at the moment I feel that it is alittle overvalued and the price is mainly held by the surge in buying recently.

The result of envy buying =P

So prices are probably going to stay about there.

This is now speculators territory, strictly intra day and probably only if you hold alot of stock (don't forget the transactional costs and currency conversions if you are overseas.)

Value wise, I will wait for it to get cheaper. Those of you who bought in the 60 to 70's range, you have made your buck =) enjoy!

You want to know what will happen to Baidu? See Google. They are following Google's strategy and ironically, they are facing the same issues. see this.

But there is a difference, and that is the way Chinese law is run. Also, remember that plaintiffs are chinese companies while Baidu is really foreign owned. All these will play a part if you want to predict how the dust will settle.

I feel that to grade Baidu carefully, you really need to watch management, whether is it really just following Google or does it have a sound strategy (following Google might be a sound strategy =)).

But with all value investments, management is the core of your strategy. Google and Baidu are ultimately different though similar. And that is what you have to keep in mind when you evaluate them.

Cheers for your investment!


+++++++++++++++++update 061030


Blog ged a little

Essentially just a blip on Baidu's developement.

The move now would be to check out the history of the current and future? leaders, that would be a good gauge of whether Baidu will continue to do well.

Things like marketing savvyness, finance stability , character etc.


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Wow I dun do research for a week plus and Baidu rises to 93.88 USD




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apparently Baidu is currently 102 USD, given this fact Baidu has effectively broken the psychological 100 dollar mark.

Is it likely to languish there?


Also Baidu and Ebay are working together that was the news on the 8th of Nov

or this

Oh and Ebay's auction site in China is Eachnet? gotta check that out =)

i was really upset when Ebay bought Baazee. ah well.

Apparently an Axis is forming as well.


The alliance is a challenge to Chinese auction leader Alibaba.com, a joint venture partner with Yahoo Inc. (up $0.32 to $26.93, Charts), and another online auction player, Tencent Holdings Ltd. (up $0.00 to $2.63, Charts), which has a pact with Google Inc (up $5.43 to $478.00, Charts).


This should be interesting.




Also one can now download antivirus from the site and here, dun think the impact will be great though . Much will depend on what they actually mean by a plarform of is this more gesturing.
















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061206
was sued by Hebei Jixin Packaging Steel Strip Company over Baidu's paid ranking service, with court proceedings to begin on December 6