Baidu.com, Inc. RawGreed Award Winner of the Day, a Third Time

Posted on November 8, 2005 , filed under Business Gossip, Stocks | Print This Post

BIDU, Baidu.com, Inc. is currently trading over $70 a share. According to the First Call Consensus Recommendation Scale, BIDU is among the lowest ranked stocks on the Dow. On a 1-5 scale, 1 being buy and 5 being sell, analysts rank BIDU a 4.1. For comparison, DALRQ.PK, Delta Air Lines, Inc., and NWACQ, Northwest Airlines Corp. are both ranked 4.3, not too far off from BIDU’s 4.1. There must be some manipulation going on that is keeping the price of the stock so high. BIDU is a clear reminder of how, in the short run, greed can surpass any investment strategy in the market.

I think I will use this experience to formulate a clear strategy of investing against greed, using greed as the only metric.

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