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Jordan Andrew

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  • Buy-Do Or Buy-Don't? That Is The Question... [View article]
    I am still a believer in Baidu in the long run, as it its the best pure-play on Chinese internet growth there is. The company is clearly going through a period of transition between traditional desktop usage and mobile. The company can continue to grow in excess of 25% per year for the next 5-years, while trading at 15-17x forward earnings makes it a compelling investment opportunity. While it is always nice to get a short-term move in your favor, this idea is clearly going to take some more time to play out. The thesis still holds, I continue to be long.
    Feb 7 04:24 PM | Likes Like |Link to Comment
  • Baidu - Why You Cannot Buy It [View article]
    "This makes the company susceptible to change in China's policies in the future. If the Chinese government opens up and allows more foreign competition, then Baidu could be in trouble. Currently trade wars are flaring up between China and US on a number of issues like steel, solar and wind turbine imports. Europe is also seeking to impose duties on imports of Chinese solar panels. China could be forced to give concessions like providing better access to Western companies."

    Disclosure: I am Long BIDU

    With that being said, I believe to compare solar panels and internet search is a stretch. While you bring up a true point about trade wars flaring up between China and the U.S., this only applies to companies that manufacture and export physical goods. This argument is not applicable to BIDU as they do not have a physical product to export, and their primary market is domestic. Further, I would argue that the last market Chinese officials will open up fully to outside firms is the internet and search. As long as they want to keep control over information flow.
    Dec 29 03:06 PM | Likes Like |Link to Comment
  • Buy-Do Or Buy-Don't? That Is The Question... [View article]
    Thank you for commenting! I agree with you, the SEC and accounting firm business is a tough issue. While this does impact the price of the stock in the short-run, it does not have an impact on the long-run value of the business. It is nearly impossible to price in this type of risk as it is largely exogenous. If the SEC moves forward and shares of Chinese companies get delisted in the US, the negative cost US investors will suffer will more than outweigh the benefit. Instead, the SEC should be focusing on Chinese reverse mergers exclusively and figure out a way to work with China offline to resolve the accounting issues for the larger, well-established companies such as Baidu.
    Dec 23 11:29 AM | Likes Like |Link to Comment
  • Buy-Do Or Buy-Don't? That Is The Question... [View article]
    Hi Thomas, thank you for the comment! I agree with you, to be a buyer of Baidu you need to be a believer in the overall demographic trend in internet search, advertising and mobile. If you do, then it is easy to see how shares of Baidu reclaim their old highs and likely make a new one in the coming years. I believe any pullback under $100 is a good entry point and provides investors with a nice margin of safety.
    Dec 23 11:06 AM | Likes Like |Link to Comment
  • Buy-Do Or Buy-Don't? That Is The Question... [View article]
    Thank you for your comment and the positive feedback! I am a strong believer in full-disclosure. I do not understand why readers criticize writers over being bias when disclosing their long or short positions, as long as the article has substance. In my opinion, everyone is bias when it comes to writing an article about a long or short idea. As a reader, I prefer to see that the author disclose that they have a position in the stock they are writing about. Put your money where your mouth is, right? Thanks again!
    Dec 23 11:00 AM | Likes Like |Link to Comment
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