posted
BIDU,,,This thing has to be paid attention to... After the 400% run on the IPO this will probably be the short play of the summer. The shorts may make this stock incredibly volitile.
CAFE,,,their will be a huge dip when this thing reopens on the Pinks after the trading halt of a couple of weeks back.
I don't play shorts at the present time , but I might on BIDU.
Both of these will make good daytrading stocks in the weeks ahead..
posted
Dusty... you might wanna wait to short BIDU. Man.. predicting this one is futile. Google of China means it could soar. Being compared to the first search engine to go public in some time is not as good as being the first. I rode the momo friday based on intraday charts but attempting to make predictions beyond that and I'm lost.
Posts: 2965 | Registered: Aug 2005
| IP: Logged |
posted
Rizzo, hey man, da chit is gonna hit the fan on this one.............Big time!
The Wall Street Bankers knew the IPO was way to low, they scamed 100s of millions of dollars outa the company and investors..
The CEO damn near fell apart under hard questioning by the CNBC hit squads..
He is way out of his league on Wall Street. He damn near was torn to shreads.
The communists still in charge in China could senser and manipulate this company, and that variable is impossible to predict.
Even though Google has a stake, it will not be able to use it's weight in China.
The market cap is nothing more than air... Just watch, there will be a scandal pop up, and the off shore hedge funds will be shorting the hell out of this thing.
L2S will be critical in timing this thing in the weeks to come. I already played the stock 3 times on friday and made a few bucks.
Posts: 10729 | From: oregon | Registered: Feb 2005
| IP: Logged |
posted
WOW down to $93 Glad I got out at 137!! LOL
-------------------- Never underestimate the power of stupid people in large groups. Posts: 222 | From: Southaven, Ms. | Registered: May 2005
| IP: Logged |
posted
[QUOTE]Originally posted by Rizzo: [QB] Dusty... you might wanna wait to short BIDU. Man.. predicting this one is futile. Google of China means it could soar. Being compared to the first search engine to go public in some time is not as good as being the first. I rode the momo friday based on intraday charts but attempting to make predictions beyond that and I'm lost. ------------------------------------------------
Rizzo, well, I really don't like being right on this one........
Watch out for another mugging today.
Posts: 10729 | From: oregon | Registered: Feb 2005
| IP: Logged |
posted
NEW YORK (Reuters) - Baidu.com (BIDU.O: Quote, Profile, Research) shares plunged as much as 21 percent on Wednesday after two of the investment banks that managed the Chinese Internet company's meteoric initial public offering said the stock price was overblown.
Goldman Sachs and Piper Jaffray both rated the stock "underperform," given its extraordinary debut on Aug. 5, when it rose more than fourfold.
The eagerly anticipated IPO of Baidu, known as the Chinese Google, recalled the dot-com heyday, when first-day price rise records were broken weekly.
The debut of China's largest Web search company eclipsed even that of Google Inc. (GOOG.O: Quote, Profile, Research), but a steady drumbeat of critiques over its valuation has surfaced since then.
"Baidu's current stock price has far exceeded even the most aggressive valuations and is distinctly 'off the chart,' in our view," Piper analyst Safa Rashtchy said in a note to clients. He set a price target of $45 on the stock.
Piper Jaffray estimated Baidu is currently trading at about 123 times 2006 earnings before interest, tax, depreciation and amortization, compared with a range of 14 to 26 for its peer group. "We believe this level of disparity is not sustainable and the stock is likely to correct this," Rashtchy wrote.
Baidu shares opened on Nasdaq more than $26 lower at $87.22 after closing Tuesday at $113.59. They were trading at $91.11, down 20 percent, near midday.
"Valuation remains the one downside to the story as we are not able to justify current valuation even when evaluating more aggressive scenarios," Goldman analyst Anthony Noto said in his note initiating coverage. His model valuation on the stock implies a price of about $27, he said.
Baidu, which reported second-quarter revenue rose nearly 200 percent from a year earlier, has already started adjusting market perception. It told investors that third-quarter revenue would rise at a slower rate than previously expected compared with the second quarter.
Posts: 163 | Registered: Jan 2004
| IP: Logged |