Baidu.com IPO (The Chinese Google)

[diogenes]

A bit amusing, but also, I think due to BIDU being an IPO:

http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=BIDU&range=7&mgp=20050805&x=6&y=4&hdate=20050805

[Smoodo]

What do you guys think about the stock now?

I've seen it sitting at $83 for a while now, and then on speculation of a buy out at $96. I've used this site and have many Chinese friends who use it and see that it is really the google of China. It even looks like Google. Their product offering is not as large as google and they do some very questionable things like allow searching for illegal music right on their front page. In America I wouldn't dare buy them like that, but in China where there is little regard for copyright?

What do you think?

[sowersnc]

I would not touch it. The P/E is too high for me and they need to prove themselves with earnings. It does look like an exciting one to own but I would pass.

Best of Luck!!

[spikefader]

BIDU: I'll pass, but it is bullish.

[IIC]

BIDU is not a News play...It is a Rumour play...nothing wrong with that...but buyout???...I don't believe it...I may be wrong...but I will pass

[Rob]

_ BIDU Again _

Taking a more recent look: hmmm, still a very high multiple, but an intriguing chart. Any of you technical people think it will soon retreat to the 50-day? And if it does, will it find support? Or will it continue to plunge?

Does anyone here follow the news regarding this company?

[New-born baby]

Ride 'em Cowboy

Taking a more recent look: hmmm, still a very high multiple, but an intriguing chart. Any of you technical people think it will soon retreat to the 50-day? And if it does, will it find support? Or will it continue to plunge?

Does anyone here follow the news regarding this company?

Rob,
Do you know what happened today? A triple top breakout. In other words, that Triple Top is now support for this monster. BULL, baby, BULL! You need to get Lye-baby to show you how to get on this monster, cause it is going to roll. $83 target. So you've got support at $64 and $62.50.

Hey, if you have fear in your heart for this one, then sell the MAY $65 call on it for----are you really ready for this?---$4.10! That's right, Mildred! HUGE possibilities here! Hey, the MAY $60 put sells for $2.50. There is money, lots of money, in this stock. A very rich option chain, indeeeeeeeed.

Still afraid? That MAY $60 call sells for $6.70. Buy it at $64.28 and sell that call and on MAY 19 you should net $66.70 for your stock, a return of 3.7%.
And if the price did collapse, you'd only have $57.59 in the stock.

[spikefader]

71.38 has a potential to resist strongly. A daily close over 73.35 and that would be a bullish thing. Frankly, I have a bearish bias on it until it does that.

[New-born baby]

May 19

71.38 has a potential to resist strongly. A daily close over 73.35 and that would be a bullish thing. Frankly, I have a bearish bias on it until it does that.

Spike's a great trader, and I respect his viewpoint. However, I am only looking at May 19. I put my money where my mouth is on this one .
Spike is looking at BIDU without any option plays, whereas I am looking at the options and a time factor of May 19, or about 8 trading days. We shall see how this one plays out, but right now, I am in.

[New-born baby]

Rob

Buy the stock here at $64.35, sell the MAY 19 $55 call for $10.70, and you've only got $53.65 in the stock. They'll buy it for $55, but you make $135 per 100 shares in 8 days.

[spikefader]

Why thank you sir; and backatcha. I will watch with interest your trade and will likely learn somethin Good luck with it!

Here's the chart to go with my humble bias.

[Rob]

I appreciate the responses, yous mugs. As for options, I really need to educate myself more on them before I would feel comfortable trading them. I've done it several times now, and I think my got-burnt/did-well ratio is > 1.

Trading options is like trading stocks on steroids. I understand they're a hedging tool and all that, but until I know more about them, I still am a bit wary of dealing with them. While it's true they can mitigate a loss, they can also cut into your gain on the other side of the coin.

The reason I occasionally check in on BIDU is because it is widely touted as the "Chinese Google," and Google has proven to have a pretty successful business model. With 8.4 billion in cash it's hard for me to imagine they haven't at least considered the possibility of acquiring Baidu.com.

[New-born baby]

Try it, you'll like it

I appreciate the responses, yous mugs. As for options, I really need to educate myself more on them before I would feel comfortable trading them. I've done it several times now, and I think my got-burnt/did-well ratio is > 1.

Trading options is like trading stocks on steroids. I understand they're a hedging tool and all that, but until I know more about them, I still am a bit way of dealing with them. While it's true they can mitigate a loss, they can also cut into your gain on the other side of the coin.

The reason I occasionally check in on BIDU is because it is widely touted as the "Chinese Google," and Google has proven to have a pretty successful business model. With 8.4 billion in cash it's hard for me to imagine they haven't at least considered the possibility of acquiring Baidu.com.

Yes, it can cut into your gains if the stock explodes past your strike price. Me, I have a goal of 5% per month on my entire account, and I don't want to take any losses. Period. So I use them to trade conservatively.

[New-born baby]

Why thank you sir; and backatcha. I will watch with interest your trade and will likely learn somethin Good luck with it!

Here's the chart to go with my humble bias.

Spike,
IMHO, your chart is right on the money. I see that resistance . The PnF notes that BIDU busted resistance today. Of course, it will retest that resistance sometime soon, and it had better hold for my sake Like I said, I just need BIDU to be above $60 on Friday, MAY 19 .

[Rob]

Boom!

Look at that after-market pop!