Thursday, May 15, 2008

TheStreet.com upgrades Baidu from sell to hold

Strengths : robust revenue growth, a solid
financial position with no debt and notable
return on equity.

Weakness: a premium valuation.

Its quick ratio of 2.98 demonstrates an
ability to cover short-term cash needs.
Gross profit margin is rather high at 70%.
A net profit margin of 26% compares
favorably to the industry average. Shares
have nearly tripled in price over the past
year, netting the stock a price-to-earnings
ratio of 132.92, which makes it much more
expensive than the industry average.
Baidu.com had been rated sell since March 20.

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