Monday, September 14, 2009

Search in a New Language - Chinese - Baidu - BIDU

Baidu (BIDU) is the leading Chinese language Internet search engine. It has been in my Jim Van Meerten/BarChart New High model portfolio on Marketocracy for some time. I add stocks to my New High Fund when I see stocks trading over 100K per day that continue to hit new highs.

BIDU's main competition in the Chinese market is SINA and SOHU. BIDU has 545M in revenue while SOHU has 485M and SINA 372M. Why do I like BIDU above the others?

As I've shared before, I use BarChart to find stocks having upward price momentum and good underlying fundamentals. BarChart's 13 technical indicators all have BIDU as a BUY for a 100% Buy rating. The stock continues to hit new highs and has hit 10 new highs in the last 20 trading sessions.

Recommendation: BIDU is trading around 375, a high price. Many think it may fall so use caution and put a stop loss around the 50 day moving average of around 330. This is not a stock to buy and hold but might be a good one for a closely monitored trading portfolio.

Give my your opinion at FinancialTides@gmail.com

Disclosure: I have no actual position is BIDU at time of publication

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