Tuesday, June 9, 2009

Stock In Focus: Baidu Inc (BIDU)

Take a look at the chart for BIDU below:

In the past six months BIDU stock price has increased 200%.

Looking at the chart above, BIDU is above its 20 and 40 day moving averages which is bullish for BIDU. Crucially, it is also above its 200 day moving average which is an extremely bullish signal according to traders.

The ADX is above 50 which shows that BIDU is in a strong uptrend.

The MACD is also positive and far above its signal, both bullish signs for BIDU.

The Slow Stochastic is at 91.944 and is above its signal which is bullish for BIDU. Being at 91.944 means that it is above its high threshold of 80 and is at overbought levels. However, since the stock is in a strong uptrend, the BIDU stock price could still continue to rise with minor corrections from time to time.

So all these indications point to very bullish signals for BIDU.

The following is a company profile of Baidu Inc:

Baidu, Inc. provides Chinese language Internet search services primarily in China and Japan. The company offers a Chinese language search platform that enables users to find online information, such as Web pages, news, images, and multimedia files.

Its products include Baidu Web Search that allows users to locate information, products, and services using Chinese language search terms; Baidu Post Bar and Baidu Knows, which provides users with a query-based searchable community; and Baidu News that provides links to local, national, and international news.

The company also provides Baidu MP3 Search that provides algorithm-generated links to songs and other multimedia files; Baidu Image Search to search various images on the net; Baidu Video Search to search for and access through hyperlinks of online video clips that are hosted on third parties' Web sites; and Baidu Space to create personalized homepages in a query-based searchable community.

In addition, it offers Baidu Hi, an IM service; Baidu Youa, an online C2C platform; Baidu Safety Center for virus scanning, system repair, and online security evaluations; Baidu Desktop Search, a downloadable software that enables users to search various files saved on their computer; Baidu Sobar, which makes search function available on every Web page that a user browses; Baidu Anti-Virus for anti-virus software products and computer virus-related news; and Baidu Internet TV that allows users to search, watch, and download various shows and programs.

Baidu, Inc. serves SMEs and corporations, as well as e-commerce, IT services, consumer products, electronic products, machinery, manufacturing, medical, entertainment, education, franchising, financial services, real estate, ticketing, and tourism industries.

The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

These are top institutional holders of BIDU stocks:

MORGAN STANLEY 1,729,241 shares 5.01%
JOHO CAPITAL, L.L.C. 1,586,638 shares 4.60%
Edinburgh Partners Limited 1,077,300 shares 3.12%
BAILLIE GIFFORD AND COMPANY 817,972 shares 2.37%
FMR LLC 817,800 shares 2.37%
Calamos Advisors LLC 756,210 shares 2.19%
Credit Suisse/ 746,185 shares 2.16%
Coatue Management, LLC 544,281 shares 1.58%

Analysts expect earnings for Baidu to increase by 41.5% next year:

Earnings Estimates
Current Qtr Jun-09 Average EPS Estimate 1.43
Next Qtr Sep-09 Average EPS Estimate 1.71
Current Year Dec-09 Average EPS Estimate 5.78
Next Year Dec-10 Average EPS Estimate 8.18

The following are Baidu's first quarter earnings announcement as reported by PRNewswire:

First Quarter 2009 Highlights
-- Total revenues in the first quarter of 2009 were RMB810.7 million
($118.6 million), a 41.1% increase from the corresponding period in
-- Operating profit in the first quarter of 2009 was RMB198.5 million
($29.1 million), a 34.7% increase from the corresponding period in
-- Net income in the first quarter of 2009 was RMB181.1 million ($26.5
million), a 23.5% increase from the corresponding period in 2008.
Diluted earnings per share ("EPS") for the first quarter of 2009 was
RMB5.22 ($0.76); diluted EPS excluding share-based compensation
expenses (non-GAAP) for the first quarter of 2009 was RMB5.89
($0.86). Costs and expenses related to Baidu's Japan operations for
the first quarter of 2009 were RMB39.5 million ($5.8 million), which
reduced diluted EPS by RMB1.14 ($0.17).


Yahoo Finance
PRNewswire Asia

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