Baidu.com (BIDU)

Avoid this one. One of the things he thinks about when investing in emerging markets is the viability of the business and the viability of the profits. If you’re thinking of this kind of a stock, you are going out on a limb twofold in terms of 1) taking a stand on the secular permanence of the technological lead in Chinese search engine market and 2) the regulatory outlook.

Internet search engine of China. Have about 70% market share in the PC desktop search space. Real issue, as it is for all competitors in the US right now, is what is their share in mobile. They only have about 35%. Raised about $1.5 billion in November, which should get them on a good footing to try to push into the mobile space.

(A Top Pick Sept 26/11. Down 15.31%.) Has had a lot of negative news in the last little while. Has competition that is trying to capture share but it hasn’t impacted earnings. Also, it is hard right now for them to monetize mobile search. Thinks the story still has legs.

This was a star going up until a couple of years ago. Chart indicates the 200 day and 50 day are falling. For the time being you want to be out of this stock until there is some strength showing.

(Top Pick Sep 26/11, Up 7%) Fallen a bit out of favour. Google for China. They now have no competition. Upgraded to Phoenix search. Tremendous potential to grow and a dominant player. Growth rate is extraordinarily high.

Caller bought Sept $85 Puts expecting it to go under $80 by Labour Day. Too far in price and time? Not a big believer in "Buying" Puts or Calls. This one has great numbers so probability of it going down to $80 is very low. If you own the Puts, Sell them..