Out Fox The $treet

Update - Dec. 27 China setting up for a big recovery in 2023 in a very bullish sign of a big rebound in the business of Baidu.  -Alibaba ( NYSE: BABA ), JD.com ( NASDAQ: JD ), Baidu ( NASDAQ: BIDU ) and several other Chinese tech stocks rose in premarket trading on Tuesday as the country eased up on restrictions for international travelers and continued to  remove the majority of its zero-COVID policies that have plagued the country's economy. -On Monday, the National Health Commission said it would no longer require inbound travelers to head into quarantine, starting January 8. Instead, travelers entering China will have to show a negative PCR test 48 hours before entering the country. -COVID-19 was also downgraded to a Category B virus, down from a Category A level, the commission added, as it has become less virulent and likely to become a common respiratory virus. Original article published on Dec. 26.  Baidu should see a rebound in the digital ad market similar to th...

Baidu continues to slump to multi-year lows. The Chinese company has growth opportunities outside internet search in voice assistants and self-driving cars, among others. The stock remains exceptionally cheap in the large-cap technology sector as margins rebound with the exit of transaction-related businesses. The general weakness in Chinese tech stocks provides a substantial opportunity for a stock like Baidu ( BIDU ). The internet search leader in China has in-roads to new technologies and the Chinese economy is still transitioning online while the economy is growing at one of the fastest rates in the world. My investment research continues to support buying weakness in the stock, especially on irrational fears related to Google ( GOOG , GOOGL ) entering the Chinese internet search market. Read the full article on Seeking Alpha. 

The recent SEC announcement that it had banned the Big Four accounting firms' Chinese joint ventures from auditing US listed stocks sent chills through Chinese ADRs. From Baidu ( BIDU ) to Ctrip.com ( CTRP ), investors fled the stocks to the tune of losses in the 6% range. With limited political will and possibly years of appeals and reviews, investors should focus more on the prospects of the individual stocks instead of unlikely SEC sanctions. In the case of Baidu, high-speed mobile networks are replacing the previously spotty Internet connections in China. One of the prime reasons that Chinese people prefer the larger screen size phones, or phablets, is the lack of good Internet access at home or even a reliable PC. All of this adds up to a huge pressure to obtain market share in the mobile sector with China Mobile ( CHL ) ramping up implementation of a 4G LTE network providing its customer base of 750 million subscribers access to the fastest Internet speed...

One of the more puzzling aspects of the China Internet stock boom has been the general lack of interest in ChinaCache International ( CCIH ) . Well until the stock recently got a major boost from limited publicity. Anybody following the original China Internet boom back in 2010 might recall that ChinaCache had a hugely successful IPO that soared 100%. The 'Akamai of China' quickly collapsed on the fears of fraud that hit every Chinese stock for the next couple of years. The stock has now doubled in the last month; yet it still trades at industry low multiples by an extreme margin. Read the full article at Seeking Alpha. Disclosure: Long CCIH. Please review the disclaimer page for more details. 

With the transition to mobile search around the world, it probably shouldn’t be too surprising that Baidu (NASDAQ: BIDU ) has struggled over the last year. In fact, the dominant player in Chinese search faces a bigger issue as the Chinese move quicker towards mobile. The China Internet Network Information Center reported that the total online population rose to 591 million with wireless users surging to 464 million. The percentage more » Disclosure: Long BIDU. Read the full disclaimer page for more details. 

Based on the post earnings sell-off of Baidu ( BIDU ) , investors now get the opportunity to buy the market leader in the explosive Chinese market at a substantial discount to growth potential. While investors fret over the increased costs and the transition to mobile search, they missed the big picture that mobile will eventually lead to much higher traffic for a country with only 42% Internet penetration. The company is the leading Chinese language Internet search provider with over 70% market share. As mentioned prior to earnings on February 4th, the company is an extreme value with strong growth potential. The stock reached close to all-time highs last April around $150 and a market value of $55B. The stock fell off the China cliff until December and has returned back to those levels since the recent sell-off. While investors mull over more competition from Qihoo 360 Technology ( QIHU ), the real issue remains a market transition outside of the control of the comp...

As we've written on ChinaCache International (CCIH) in the past, this Chinese internet company has been completely ignored by the market. While Sina.com (SINA) has soared and numerous other IPOs have garnered attention, the market had forgotten about CCIH. Volume for two days in early April were below 50,000 shares. An absurdly low amount for a hot internet sector. Even the 3 month average volume being only 183K shares. For example, Youku.com averages nearly 2M daily shares and Qihoo 360 Technology (QIHU) averages 5.7M. The difference is very surprising considering the growth rate at CCIH. Today CCIH had 1.2M shares traded which is the highest volume on a up day since the IPO. It is also the 2nd highest day after the 1.5M shares traded on Feb 9th after the announcement of the COO resignation. China internet stocks were hot today, but it appears the key to share gains in CCIH is for it to regain attention as China internet IPO versus a reverse takeover (RTO). Somehow CCIH had ...

Over the last 6 months, China has had four internet related IPOs that soared nearly 100% on the first trading day. The latest came last week in the form of Qihoo 360 Technology ( QIHU ). The stock was up an amazing 134% in its market debut, but only ranks second trailing the 161% gain of Yoku.com ( YOKU ). Should you buy now? Any prudent investor should take a pause after such a meteoric rise. Sure the company has a lot of potential but most companies don't live up too such grand hype. After all, there was a reason that the investment bankers priced it so much below the closing price. Do you really think they turned down extra fees intentionally? Read the full article at Seeking Alpha .  Disclosure: Long CCIH in client and personal accounts. Please review the disclaimer page. 

ChinaCache International Holdings (CCIH) was one of the top IPOs of 2010. The company priced above the initial range at $13.9 and eventually ended up over 90% on the opening day closing at $27.15 and hitting as high as $30.70. The stock eventually peaked out at $35 over a month later on Nov 12th. So what makes the stock so appealing now? Well, after that massive IPO jump and follow through, the stock has plunged roughly 50%. Investors are fleeing this once high flyer just 3 months after its peak. The combination of a weak China equities market in January and the resignation of the COO on February 10th has been too much for investors to risk. Ironically though the Shanghai Index has had a good February and shows good technical signs this week. Seems like the better question is why have investors fled CCIH with it now trading at its 52 week lows other then the COO resignation crash lows and below to the IPO open price?...... See the full article at Seeking Alpha . Disclosure: Lo...