I do not fear computers. I fear the lack of them. – Isaac Asimov
Yesterday I’d postulated that the Facebook lockup expiration might very well turn out to be a “Buy the news” event, and today the stock is up nearly 10% and about 15% since I stepped in to buy back our calls on Monday (still knock on wood). I’m not selling any of my FB common or calls yet.
Baidu, which I just last week said we needed to be patient with before buying, is down to a 52-week low right here this morning. The stock has no support right now either technically in its chart or from the sellsider analysts. My stomach turns when I picture trying to scale into more here and I can’t imagine what would make it break this fall. But the main reason the company’s guidance was a bit soft last quarter was because the company’s going to be investing billions in its new cloud initiative and other eco-system development. And it’s the expectation that Baidu’s eco-system for China’s Internet users, which is still less than 40% of the population there, that is the very reason I’m looking to build up a Baidu investment for the long-term.
Thus I’m going to buy some Baidu, using common stock for now. I might look to buy some BIDU long-dated calls when the stock stablizes some, but for now I’m adding a tranche buy of the common.
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