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A Chinese language Internet search provider.
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JohnBugsy (81.38) Submitted: 1/22/07 1:50 PM : Start Price: $122.50 BIDU Score: 149.24
Let me see.... is China search a potentially big market? I think "yes." Does BIDU have a large share of that market? "Yes." Will the market continue to grow? "Yes." Could they be bought? "No." Could they be shut down? "Possible." Probability? "Low." Google impact? "They're trying, of course, but not much success. The Chinese protect their own."
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RainerWysocki (31.31) Submitted: 7/13/07 2:14 PM
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Sure, monopolistic position and agree on growth potential but to expensive with PE over 150.Should wait for another correction of Chinese market to get in cheaper. Growth estimates rougly under 50% per annum with PE of over 150 and PEG at over 3 ????Cramer likes it but it goes against his rules; but then again you need rules to make exceptions, right?
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hhasia (56.74) Submitted: 7/15/07 3:35 PM
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Not only do the Chinese protect their own internally, but the recent change in the investment laws for the institution's reserves is a big plus. Given that these Chinese institutions can now invest in overseas equities, it does not take rocket science to know they will buy and are buying Chinese. Th Bidu jump corresponds to the change in the Chinese banking regulation. So now we have a new force in the market. (This force is overlooked by the typical US retail investor) Watchout if the Chinese govt increases the % $ the institutions can "export". My bet is this increase will happen next year.
PotatoCapital (< 20) Submitted: 7/26/07 12:25 PM
PEG analysis breaks down with growth that high...if something grew at 50% indefinitely, it would yield infinite discounted cash flow. if earnings grow at 50% a year for just eight years and then cease growing altogether, a 10% discount rate gives a fair value P/E of 160. Assuming 2% residual growth beginning in year 8, the fair P/E is 193.
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