Baidu Case Study Answers

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Baidu Inc. ADR (NASDAQ: BIDU)
Baidu is a market leader amongst the search engine providers of China. The sales of Baidu are $10,242.5 million, with a P/E of 19.8 and EPS growth rate for BIDU is 43.6%. Although it is a large company, it still maintaining a fast growth. Furthermore, it in aligns with the risk-reducing strategy by diversifying the stock. Usually, during the Chinese New Year which is the first quarter, is a weak quarter for all business in China. So as for Baidu. Since most of the business will resumed and grow stable, as a result, it should show a strong growth after the first quarter. According to Baidu forecast its revenue from 20.11 billion yuan to 20.58 billion yuan. I predict that the price of the share will continue increase. …show more content…

On 1 May, 200 shares bought at a price of 83.87, followed by 50 shares bought at a price of 80.73 on 3 May. All of these shares sold all at a price of 84.85 on 25 May. The reason to sell all stock is because sell to lock in gains of 314.8 over the short period of time when the price increase. Nevertheless, I made a mistake on this investment, due to that ignored the historic price, I bought the first 220 shares at a higher price, and then left money only enough to buy 50 shares at the time when the price is dropped to historic low.

Tyler Technologies Inc. (NYSE: TYL)
TYL is a little-known small-cap stock. The sales of Tyler reach to $591.0 million and on its way reaching mid-cap. Tyler’s annual revenue growth of 24% tells the EPS growth rate for TYL is 20.8% which is good. Shares of the company are up nearly half in the past of years, Tyler earned my confidence to be a potential stock.
During the first investment on 25 Apr, 15 shares bought at a price of 140.21 and sold at a price of 146.73 on 2 May. The reason to sell these shares it because by selling it on one side it can balance my portfolio because of the gain, on another hand, I better to free up these amount of capital for another use as it was a rather small amount of shares and inappropriate for my investing goals.
Chapter 2: Stock

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