Unbelievable!! I'm getting calls all day saying it's the Chinese version of Google. Hello!!! .09/share is a huge difference from $3.38/share. Welcome back 1999.
( DJ ) 08/05 12:31AM WSJE(8/5) Breakingviews: IPO Of Baidu Not A No-Brainer (From THE WALL STREET JOURNAL EUROPE) As pitches for initial public offerings go, Baidu.com's is dead simple. This is "China's Google" -- the most popular Internet search engine in the most populous country on Earth. The company is already profitable, and brokers estimate that China's 100 million Internet users will increase in number by 25% annually. An attractive investment, surely? Not necessarily, for a number of reasons. First, the valuation being attached to Baidu is demanding, to say the least. The group only earned a bit less than $1.5 million (1.2 million euros) in 2004. Assuming it roughly triples its revenue and doubles its costs this year, as has been the trend for the past two years, it would earn $16 million. This means Baidu will have a price-to-earnings ratio of 50 at the top end of the indicated range for the IPO. Second, Baidu isn't yet a Google. Google's sales were 85 times larger than the Chinese group's when it went public last year. Baidu has a good strategic position, but it is still early days for the Chinese search market. Yahoo, Google and a host of Chinese companies are gunning to beat Baidu. Third, Chinese law restricts ownership of media assets by foreigners. Investors are actually buying shares in a Cayman Islands holding company, which owns a Virgin Islands incorporated company, which has contractual agreements with a Chinese company controlled by the two founders. And that's not all. The holding company has a dual-share structure giving B shares 10 times the votes as A shares, so that insiders owning B shares will control the company's destiny no matter how many A shares are sold to the public. On top of this, insiders are selling down part of their holding in the IPO. Before putting their own money into "China's Google," investors might ask themselves why its founders think now is a good time to reduce their exposure.
This PE is awesome!!! I think goog deserves a pe like bidu, how bout $2100/share? ...Wouldn't touch bidu with a 10 foot pole
Nice article. Another NazCrack momo into super short squeeze. I wonder how many traders ended their career with this stock today.
Correct me if I am wrong, but I don't believe shares are available to short on the first day of trading...
can short an ipo no one got smoked on it yet except mom and pop that are gonna read about it...buy it...and watch it tank in their face d