VSD

Baidu: Good Short Candidate

Japan spending cost 10c/sh for all of 2007. In return you get to participate in the Japan market which is approx. $4B in 2007 growing to $7B in 2010. I think that is a very good risk/reward scenario. Also don't forget the underlying technology is the same.

The reinvestment credit is chinese govt. equivalent of a subsidy. If one is getting it, why not? Also, to get that one has to invest in infrastructure. Had this credit not existed, they would not have invested.

Guidance has to be conservative, they don't have a CFO. The new CFO will come and give proper guidance. The guidance was up 93-99% YOY.

Feel free to short, just don't complain if you get burned.

Baidu Beats Street, but Guidance Falls Short

95 new investors (instis) got in YTD. This kind of a change in ownership requires some incentives. That is why stock was down.