Behind the rush: 1st week of BIDU and new China phenomenon?

Discussion in 'Stocks' started by lmn, Aug 12, 2005.

  1. lmn


    BIDU: bull or bear?

    Of course BIDU was the hot IPO that everyone was talking about. However, since its floatation last Friday, the stock has given back much of the gains it made during the first day. As shown in the attached chart, its price once dipped below $90, before bouncing back to around $100.

    As retail traders are not allowed to short IPOs during the first 30 days, presumably it was the market maker and the institutions, including the investment banks, that were selling the stocks. I wonder why they sold. Was it because they wanted to cash in and take money off the table, or was it because they thought the initial bullishness was too much too soon and only short-lived?

    From the chart, the huge pullback and the following sideways movements were in much lower volume than the one of first day's rocketing. Does this mean people are still holding the stocks?

    Finally, here comes the big question: what do you think is going to happen? The price broke down a triangle in the last hour of Friday, but the volume was not really significant. There have been hot IPOs which subsequently lost most of their values. On the other hand, GOOG dropped below its offer price in the first 2 weeks before roaring. Can the same happen to BIDU?

    The new China phenomenon?

    From the unpegging of Yuan, to the acquisition of IBM's PC unit, to the failed bids by CNOOC and Haier, to BIDU, and now Yahoo's $1b investment in Alibaba, there seems to be a new China phenomenon in Wall Street at the moment. Hardly one day goes by when the word China goes unmentioned.

    However, are all the interests justified? Is there a bubble? If so, how can one profit from it? Thanks really.
  2. Bai Bai Baidooo. I took a gander at the BIDU chart. It looks like the flight path of a Chinese firework.

    Alan Farley must be reading ET because of this he wrote:
    Let's see marginal traders with an unhealthly sense of invulnerability and an overblown opinion of their own skills. He pretty much has ET figured out.

    The double oolong top and the long march from 140 to 120 says "Short the **** out of this."

    Baidoo Bing Baidoo Boom