Baidu And China Internet Stocks Heating Up Finally

After a disappointing year it appears that Baidu (BIDU) is finally waking up. The stock has been in a major downtrend since peaking last April over $150. The stock has been a favorite of Stone Fox Capital over the last couple of months as the it dropped below $90. It currently trades at only 16x greatly reduced forward estimates. With the China internet sector still in the early days, investors can purchase the preeminent search engine in that massive country on the cheap.

For comparative purposes, BIDU is worth only $36B while Google (GOOG) now approaches $300B. No doubt should exist that BIDU will approach the valuations of GOOG as the China internet market grows up.

Disclosure: Long BIDU. Please review the disclaimer page for more details. 


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