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03 May 2024  (2041 Views) 
Tan Kin Lian - Investment Journey

Update on Baidu (9888.HK)
I bought 25,000 shares of Baidu at an average price of HK$100 during the past month, after the release of the annual result. The PE ratio was at 14 times, which is half of the PE ratio for Google. Baidu operates in China and provides a range of services similar to Google. 

The analysts were bullish about the fundamentals of Baidu and gave a price target of $150. 

The amount of my investment was HK $2500,000 or about S$420,000

During the following three weeks, the price dropped to $93, giving me a loss of S$30,000 on my investment. During the past week, the price increased sharply to $109. I recovered my loss and my holding now shows an unrealized gain of S$38,000. 

I expect the price to increase further, but will sell my holdings gradually at $110 and over. 

The price is volatile. When it dropped below its fundamental value, I would hold the stock until it recovers to its fundamental value. When the price recovers, I will take profit gradually.

My earlier review of Baidu, made a month ago, can be viewed here:

Tan Kin Lian 

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