Christine Tan Baidu.com BIDU-Q COMMENT Aug 31, 2017

Baidu reported earnings recently and missed sending the stock down. He does not believe tech talk as having a real revenue story. As such, the valuation does not make too much sense to him. The trade issues with China have made all these companies cheap, so if you are a trader this could be a good way to go. He would prefer Tencent or Alibaba instead.

He avoids Chinese companies--heard too many horror stories. Google is growing faster than Baidu, and he prefers Google if you want an internet stock.

Look past the headline noise (of Biden criticizing the Chinese economy) and instead focus on the fundamentals. China's government need to stimulate their economy. The price is very cheap, though not as cheap as BABA.

Yesterday, China did a smart thing by cutting their federal funds rate by 50 basis points. This is gigantic and has impact, by making their economy--and stocks--stronger. Also, he suggests they reign in their real estate industry. China has to do something to revive its economy. Also, both US candidates in this election year will bash China. Given all this, he's changed his mind about Chinese stocks and recommends Baidu, Alibaba, Pinduoduo and JD.com. They are very cheap and are real businesses. Also, they are recognized internationally. No, he won't buy them, because he doesn't trade, but if he did trade, he would.

 Alibaba and Baidu are the only safe Chinese stocks, one you can stick with if the economy falters. Trades at only 10x 2025 PE