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How to Protect your Wealth by Investing in AI Tech Stocks

Baidu - BIDU China Stock Price Analysis Forecast 2023

Companies / China Stocks Jan 12, 2023 - 01:20 PM GMT

By: Nadeem_Walayat

Companies

Ai Stocks Portfolio

A quick look at the current state of my portfolio which is now 88.5% invested after arrival of approx 5% of fresh cash and after I sold all of my NBIX holding given that it earlier retreated from a multi year high, and that it tends to trade within a range of $125 to $76. I have update the table to indicate when columns were last updated. I have also replaced the beta column with something more useful called Future Growth (1-10), which is basically how I see the COMPANY doing in terms of future growth potential where 10 is the highest and 1 is the lowest, note this does not mean that the stock prices will match growth potential due to a myriad of factors such as sentiment, valuation and politics, but it gives insight into the underlying prospects for the businesses where the two stocks that score 10 are AMD and TSMC which is why I am heavily invested in both and don't fret about stock price drops in either as recently experienced because the underlying businesses have huge long-term future growth potential. Stocks that score 9 are Nvidia, Facebook, ASML and IBM, which again means I am not too phased by what we recently witnessed with the likes of META and and Nvidia, stock prices rarely reflect the actual state of the underlying business as they oscillate between extreme fear and extreme FOMO as illustrated when one watches the Cartoon Network (CNBC).


Table Big Image - https://www.marketoracle.co.uk/images/2022/Nov/AI-stocks-portfolio-25th.jpg

Baidu - BIDU - $95, EGF +16%,+23%. P/E 12.

Baidu is China's Mini Google that it is systematically ripping off lock stock and smoking barrell, probably got a Bidudynamics in there making Bidu robot dogs, with a BIduDeepMind playing Alpha Go. But look at those fundamentals, trades on a P/E of 12, and has EGF scores to dream of! Surely these numbers must be reflected in it's stock chart? Currently I am 107% invested so have scope to expand my exposure a little higher to match the other tek giant holdings at about 120% invested.

Bidu BOOMs and BUSTS - the stock went form $82 in March 2020 all the way to $354 February 2021 and 18 months later back down to $80, In fact for good measure set a new low at $74 before the current rally to $95 perched just under major resistance at $100, which when over come I suspect will propel Bidu towards the next resistance area of $155 to$170 which will be a tougher barrier to cross. Looking beyond $155 I cannot see why Bidu could not once more FOMO to a ridiculous price such as $355 or more, Fundamentally it is cheap and unlike it's other two brethren EGF suggests to expect strong earnings growth, so limited downside and large potential upside.

I am 107% invested with my average buy currently at $119 (changes with sterling). So the big question mark is do I buy more before it breaks above $100 or after, as after would be a safer bet, i.e. enters the $100 to $155 range rather than anticipating a break higher which is what a sub $100 buy would be. I am going to buy a little more Bidu with a view to selling at around $150. The risk is Bidu does not break higher.

So of the three Chinese Tek giants Bidu by far looks the best then BABA and then Tencent trailing. Where the fly in the ointment is to what degree can we trust the company stats? And what will the CCP do next? Invade Taiwan? My strategy is to trim at a profit down to about 90% of target exposure, so I still intend on holding most of what I bought and seek to add a little BIDU. And before patrons start listing bad news stories in the comments remember that for stocks to be CHEAP the news has to be BAD!

BAD NEW IS GOOD NEWS FOR BUYING CHEAP STOCKS!

This article is an excerpt form my recent analysis on the current state of the embryonic stocks bull market Stocks Analysis Bonanza - GOOG, QCOM, ASML, TCHEY, BABA, BIDU, TSLA, WDC, RBLX, MGNI, COIN, BITCOIN CAPITULATION! that was was first made available to patrons who support my work.So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat. Lock it in now as $4 per month as this rises to $5 per month in th new year.

Also access to my extensive analysis that concludes in detailed stock market trend forecast into the end of 2023 Stocks Bear Market Max PAIN - Trend Forecast Analysis to Dec 2023 - Part1

Most recent analysis includes -

So for immediate first access to to all of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

My Main Analysis Schedule:

  • UK House Prices Trend Forecast - Complete
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  • US House Prices Trend Forecast - 80%
  • Global Housing / Investing Markets - 50%
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Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat. Lock in now as this increases to $5 per month in the new year.

And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.

Your mega-trend investing analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2022 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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