Fast forward to day and BIDU is now 18X stock average 70x earnings previous 5 years
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- SEC attack on Chinese affiliates (and Chinese internet companies) of Big 4 accounting firms for withholding documents on Chinese internet stocks
- A rumor of the divorce wife gets a huge chunk of stock
- 30% growth not 40% growth and deceleration for Chinese internet companies
- Fear of 1.5Bn bond deal to raise for acquisitions
Value multiple for a growth stock like Baidu Inc. ( BIDU , quote ) can be scary but this was overdone to the downside and we still want to be in the trade so we rolled our 105 calls into 115 weekly next week but in the process took some 1/3 of premium out of the trade...
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.