Through April of this year, Baidu, Inc. (BIDU) was one of the hottest tech properties in the investment world. The stock of the leading Chinese language internet search provider reached close to all time highs around $150 and a market value of $55B. Now the stock appears to be falling off the China cliff.
Not only is the stock facing less and less investor appetite for Chinese stocks, but now the fears are growing that all Chinese stocks face delisting possibilities due to audit issues.
While the S&P 500 remained close to recent highs on Wednesday, Baidu again plunged to a new 52 week low. Other issues continue to pop up over the conversion to mobile reducing the click through rate (CTR) and more competition from Qihoo 360 Technology (QIHU). All of these issues have pushed the stock down to a very cheap valuation with a PEG near 0.5.
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