Tim "Jigsaw" Beyers has somehow cast me in a twisted version of Saw 4. He expects me to chew through one Rule Breaker to save another. The thing is that even though I like Suntech Power
Instead, let me try to chew through the domestic search heavies that Tim claims are so much cheaper than Baidu.com
2006 EPS |
2007 EPS |
Growth |
2007 P/E |
|
---|---|---|---|---|
Baidu |
$0.96 |
$1.75 |
82% |
71 |
Microsoft |
$1.27 |
$1.45 |
14% |
21 |
|
$10.32 |
$13.86 |
34% |
35 |
Yahoo! |
$0.52 |
$0.59 |
13% |
46 |
On average, Baidu is growing four times faster than its stateside peers. More to the point, just one of the four companies is trading at a forward earnings multiple that is lower than its bottom-line growth rate. That would be Baidu, you cheapskates. Sure, one can argue that Microsoft
Tim then claims that Baidu has "no unassailable advantages" even though it has grown market share over the past year despite the millions and billions being pumped into the region by Google
Baidu as George McFly? The only thing I see when I look at Tim's chart is the smooth ascent that finds the shares nearly tripling since bottoming out 11 months ago. I would back up the truck -- or the DeLorean -- if I could go back in time for a piece of that action.
In the words of McFly, "I'm your density. I mean, your destiny."
You're not quite done yet! To see the bear rebuttal and the opening arguments, click here. If you've already read everything, cast your vote for the winner here.
Baidu is a recent selection in the Rule Breakers growth stock newsletter service. Yahoo! is a Motley Fool Stock Advisor recommendation. Microsoft is an Inside Value pick.
Longtime Fool contributor Rick Munarriz has been to mainland China just once, but he longs to brush up on his Mandarin and make it another go of it. He does not own shares in any of the companies mentioned in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.