AndyMan

Baidu: A Train Heading for Derailment?

As peak oil approaches....oil prices/fuel prices will rise...rise....rise..m... airline companies will go bankrupt as we are seeing. As prices rise all around the world...people will have to focus a larger portion of their income on energy/food/basic needs. I would suspect air travel to drastically decrease from the retail sector as time goes on. As technology progresses...businesse... will also travel less as teleconferencing will be preferred from a cost and time basis.

A companies fair value is both present value and forward looking.....I would see airlines as horrible investments as I think they will all go bankrupt with time if they continue to use jet fuel....and there isn't many alternatives right now. Biofuel with a 60-70% energy density of jet fuel most likely can't be used (maybe?). This is all coming from someone within the aerospace industry.

More and more people will spend time online....as they can't afford to drive around when fuel prices are $8-10-12/gallon in the near future. Baidu is a market leader......Google hasn't been able to take market share from them.....and Baidu plays on an uneven playing field....not held to US regulations....which I see as a HUGE advantage.

The shares are overpriced some....but nothing hugely out of the ordinary for the growth they are experiencing and will experience.

Just MO.