globalmacro

Baidu: A Train Heading for Derailment?

This article is dumb, dumb, dumb. Comparing Baidu to US airlines is a laughable exercise. Every Chinese stock has a huge short interest -- call it the bandwagon effect. The fact that a Chinese stock has a large short interest is completely meaningless except for the fact that it should provide for an extra pop when sentiment shifts. In 2000, companies with earnings were trading at a PE of 2,000 and most of the .com's weren't even profitable. Baidu is profitable and growing very fast. Your comparisons are elementary and flat out incorrect. Many of the Chinese stocks listed on the NYSE are some of the most attractively valued securities that can be found anywhere in the world currently.