Monday, March 22, 2010


I've got to get a short on BIDU quick! 

GOOG  redirects traffic to or Hong Kong from China.

Again, I think people have overestimated the amount of restrictions you can place on GOOG as well as overestimated the net revenue gain to BIDU.  After all, you can access the main page anywhere in the world and turn on language translation....

Moreover, BIDU has risen nearly 50% or a $6.5b in market cap on what will likely be a $100-200m increase in forward revenues (if even that much) so people are paying 35-50 times sales on incremental revenue that may or may not even fully materialize.

Indeed, life is stranger than fiction.....

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