Contrarian defensive investor Steve Romick purchased a stake in Baidu Inc. ADR (BIDU, Financial) during the second quarter of 290,466 shares. The purchase had a 0.52% impact on Romick’s portfolio.
Baidu Inc. was incorporated in Jan. 18, 2000. The company is a Chinese language internet search provider which focuses its business on search products, social products, location-based products and services, music products, PC client software and mobile-related products and services. Baidu is currently ranked as the 16th most globally searched website.
Baidu Inc. has a market cap of $56.72 billion, a P/E ratio of 11.25, an enterprise value of $51.12 billion and a P/B ratio of 4.49.
Romick may have seen some attractive aspects of Baidu:
- Baidu's P/B ratio is close to its 10-year low at 4.04.
- Baidu's P/S ratio is close to its 10-year low at 4.79.
- GuruFocus gives Baidu a Peter Lynch fair value of $365.31.
- Baidu has also reported strong financial statements in multiple areas over the recent five years. It has increased its revenue by an average rate of 52.9%, EBITDA by 50.8%, operating Income by 22.9%, EPS without NRI by 47.10%, free cash flow by 25.80% and book value by 56%.
- Baidu is the No. 1 site in China in terms of traffic.
Below is a Peter Lynch Chart for Baidu.
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Disclosure: I do not own any shares of this company.
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