When do fundamentals matter more than technical or sentiment analysis?(ticker BIDU)

When do fundamentals matter more than technical or sentiment analysis?(ticker BIDU)

When do fundamentals matter more than technical or sentiment analysis?(ticker BIDU)

I am a fundamental trader that loves to hold onto stock positions so I “get” to pay the long term capital gains tax.  The traders’ saying goes “Fundamentals trump technical analysis in the long term, but sentiment trumps all!!!”  I use options to protect the stock when the stock has a bad earnings event.  If technical crossovers occur to the bearish side or something unexpected occurs I will create a protective put or a collar strategy.  My goal is to make up some of the downside risk in the stock price because stock prices move up or down significantly all the time in today’s volatile market. 

Fundamental analysis, defined by investopedia, is a method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. (Read more: http://www.investopedia.com/terms/f/fundamentalanalysis.asp#ixzz277a0JBwo) In real life they are just numbers or ratios to value the strength of the company against the sector, another company or an index like the S&P 500.  There are certain ratios that as traders, we will gravitate to in order to justify our purchase of the equity in our portfolio.  Some of the fundamentals are P/E ratios, profit margin, revenues, etc…  These numbers give us the strength to keep the equity in our portfolio even when the stock starts a downward trend.  We know through fundamental analysis the stock should come back or move higher from the price we purchased the equity.

BIDU has awesome fundamentals all the way across the board.  BIDU fundamentals are above the industry average in many areas and below the industry averages in the areas that benefit the strength of the company.  Yet there is a small internet company called Qihoo360.  This is where sentimental analysis has dropped BIDU shares $25 per share or over 20% of the value of the stock price.  Qihoo360 had a Q2, 2012 increase in revenues (107.4 %) with total revenue coming in at 72.8 million U.S. dollars.  BIDU, the same quarter, had revenues of $858.8million U.S. dollars.  BIDU has a more realistic P/E ratio of 28.56 (trailing 12 months) while QIHOO has a higher than normal sector P/E ratio of 65.62.  There was an article that stated the fact Qihoo360 took 4% – 9% of the internet market advertising from BIDU.  Fundamentals do not show that fact but then again I guess we are always supposed to believe the internet.  Technically BIDU is bearish and QIHOO360 is bullish so what to do with your portfolio.

Is it time to sell BIDU and jump into Qihoo360?  In my humble opinion, definitely NOT!  I like proven companies that I can rely on the fundamentals.  Qihoo360, in my opinion, has put back to back quarters that show improving fundamentals.  It doesn’t mean they will continue into the future.  The news article that started BIDU’s fall and Qihoo360 rise was not fundamentally correct.  If it had been reported that they increased profits in the mobile marketing side of the industry then they have a case.  Qihoo360 is a software company while BIDU is a search engine, a mobile search with AAPL using their website, a cloud investor with many other internet related revenue streams

Doing fundamental research is the homework in trading.  It is the pencil, paper, and calculator work that can bring us to a conclusion to these two companies.  It is a Fad or upcoming company vs a proven company.  There are plenty of times that a Fad can make you money.  CROXs is proof of that.  Maybe Qihoo360 can be the next, but my portfolio will remain with BIDU and fundamentally all I can see is a buying opportunity!

Disclosure:  I am long BIDU shares

  • Social Links:

542 Comments
  1. Excellent site, keep up the good work my colleagues would love this. I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say I’m glad I found your blog. Thanks

  2. This kind of submitting is actually wonderful and just such a wonderful study which you have achieved. It’s decreased the challenge much. thanks to you. Go ahead and check out my own acquire stock portfolio lighting site.

  3. First of all let me tell you, you have got a great blog. I am interested in looking for more of such topics and would like to have
    further information. Hope to see the next blog soon

  4. Now-a-days with the growth in the organization’s business,there is increase in the requirements for hiring more and more employees for the companies.Increasing number of employees gives increase to the employment difficulties for the companies as well.On the other hand enough a chance to time change in the worker regulations makes problems for the companies to shape their worker management techniques.It is difficult for the companies to stay always modified with the worker regulations as they have to spend most here we are at being receptive towards the market and its difficulties to build techniques according to that.To get over this situation,employers required very powerful employment alternatives for them that is best offered by the Staffing Organizations in Indian.Iris-Corp is one of the well known Staffing Organizations in Indian.The company provides the incorporated alternatives in addition to strong process knowledge and ideas with targeted employment abilities.

  5. This page is very informative and fun to read. I appreciated what you have done here. I enjoyed every little bit part of it. I am always searching for informative information like this. Thanks for sharing with us.

  6. Nice post. I used to be checking continuously this blog and I’m impressed! Extremely useful information specially the final phase I maintain such info a lot. I was looking for this certain info for a very long time. Thank you and best of luck.

  7. I’m searching for this kind of article from about 2 hours in bing and after a long time I get it here which really helpful for me to make one of my assignment. I read out this article very carefully and perceived the information and logic you mentioned. I will try to use this in my career. Hope, you continue you writing. Waiting to get more for awesome informative article from you.

  8. Your blog is so beautiful and natural all are like your blog everyone appreciate your blog. A diamond is forever’ from the past to the future diamond is a stone that will never lose its value and beauty. I really enjoyed this site. Your newer posts are simply wonderful compared to your posts in the past. Keep up the good work!

  9. Great goods from you, man. I have understand your stuff previous to and you are just extremely fantastic. You make it enjoyable and you still take care of to keep it smart. This is really a terrific website.

  10. Wow This one is great and is really a good post. I think it will help me a lot in the related stuff and is very much useful for me. Very well written I appreciate & must say good job.

  11. Really i am impressed from this post….the person who create this post he is a great human..thanks for shared this with us.i found this informative
    and interesting blog so i think its very useful and knowledge able.

  12. I appreciate the information that you have provided in the post. It is worth nothing and I really liked the presentation as well. I will surely come back for more of interesting posts.

  13. Very interesting blog. Alot of blogs I see these days don’t really provide anything that I’m interested in, but I’m most definately interested in this one. Just thought that I would post and let you know.

  14. I am very much pleased with the contents you have mentioned. I enjoyed every little bit part of it.It contains truly information. I want to thank you for this informative read; I really appreciate sharing this great.

  15. Good day. Very nice website!! Guy .. Beautiful .. Wonderful .. I’ll bookmark your site and take the feeds additionally…I’m glad to find a lot of helpful info right here in the article. Thank you for sharing.

  16. This is very informative and brief information given in the post which is very helpful for me. It should be always unique. If you are in the Central London area looking for London escorts, these ladies are available anytime. Hot Babes

  17. Before and Afters are my favorite posts! That is the coolest low cost makeover of a kitchen, great work Brett! Love that sofa too, it kind of made my fingers hurt to think about tying all those tuffet buttons, but it looks gorgeous! I am inspired to go check out what is available in vinyl myself!

  18. I’m hooked on your blog 🙂
    Keep the before and afters coming!!! I’ll send some over as soon as get the “afters” done 🙂 Sweet Sofa very useful article. I found this blog very later but I am glad I did. I am going to try these tips.

  19. Good article! There is a great need for more in-depth reviews of certain products and technologies. Your tips are really helpful for anybody who wants to create reviews of any type. Great job

  20. I simply want to say I’m beginner to blogging and actually savored your website. Probably I’m want to bookmark your website . You really come with remarkable posts. Many thanks for sharing with us your webpage.

  21. I am more passionate on Fundamental analysis because it measures in determining intrinsic value by examining related economic, financial and other qualitative and quantitative factors.I really love your passion on posting such a valuable information.

  22. Hi,

    My name is Amy Cooper; I’m the affiliate market researcher of share market at Sonictrades.com,
    Our biggest affiliate network for providing tips in Mcx commodity. I’d like to invite you to join us and enjoy the many advantages we give our affiliates. We provide you the best mcx tips with 100% accuracy and infact you can try my taking a free trial from us.. Just fill the free trial form here on the URL: http://www.sonictrades.com/mcx-tips-free-trial/

  23. Doing fundamental research is the homework in trading. It is the pencil, paper, and calculator work that can bring us to a conclusion to these two companies. It is a Fad or upcoming company vs a proven company. There are plenty of times that a Fad can make you money.Thanks……

  24. Great post! I am actually getting ready to across this information, is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here.

  25. I was very pleased to find this site. I wanted to thank you for this great post!! I am definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post.

  26. this is good page and If you are looking for a Internet Marketing Company, who can grow your business with the special efforts by doing Seo, Local Listings PPC, then Solution for Websites is the ultimate option for your search. we design website for all kind of business weather its a Small or Big business. Email Id:- support@solutionforwebsites.com, Contact No:- (972) 256-8007, (469) 675-6082, Login More Info:- http://www.Solutionforwebsites.com
    R and Doing fundamental research is the homework in trading. It is the pencil, paper, and calculator work that can bring us to a conclusion to these two companies. It is a Fad or upcoming company vs a proven company. There are plenty of times that a Fad can make you money.5 AM UK Sofa wrote:
    Before and Afters are my favorite posts! That is the coolest low cost makeover of a kitchen, great work Brett! Love that sofa too, it kind of made my fingers hurt to think about tying all those tuffet buttons, but it looks gorgeous! I am inspired to go check out what is available in vinyl myself

  27. Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thanks for sharing!

  28. The J’HOY Boutique. This campaign is to help an aspiring Boutique owner realize her dream. It will create jobs in the community and help support her family in the province. we need start-up funding and can offer a 50% discount for certain purchases to investors. CONTRIBUTE NOW.
    http://igg.me/p/378412

  29. Thank you this information is very useful. It is really a great Post.

    If you are looking email hosting providers then you are at a right place Icloud24x7 is an industry leading Email Service Provider that delivers its service through its private cloud using the software as a service model. We are associated with more than 1000 corporate customers for Email Hosting Services.

  30. Your post is very informative. I really enjoy the to read your post.This blog is full of the inspiration and creativity. Which will be beneficial for me in future.

  31. This is nice post which I was awaiting for such an article and I have gained some useful information from this site. Thanks for sharing this information.

  32. I am not sure where you’re getting your information, but good topic. I needs to spend some time learning more or understanding more. Thanks for excellent information I was looking for this information for my mission.

  33. this is a nice post,It is difficult for the companies to stay always modified with the worker regulations as they have to spend most here we are at being receptive towards the market and its difficulties to build techniques according to that.To get over this situation,employers required very powerful employment alternatives for them that is best offered by the Staffing Organizations in Indian. thanks for sharing this blog.

  34. When investing in the markets, you will find many stock market tips being offered. These may be stock tips given through brokers who are looking to make a commission by executing a trade. You do not need to be someone standing on the sidelines watching others trading

  35. you too could be investing in the stock market today. You will have heard many terminologies being used like technical analysis, fundamental analysis, technical indicators, and so on. Do not let these deter you from getting involved in the stock market.

  36. Why not invest in U.S. companies? There are so many sweet choices? Plus, gold and silver options should repeat last summer’s great performance. Unless very much mistaken, there is no greater investment today than Foodboosters. Just opinion :-))

  37. Nice article I think this article read any user or people perfect knowledge of information how to know the executed by the original artist and represent a resemblance of the original object information. Thanks for share it.

  38. Justplugit is an amazing website! JustPlugIt is a free service, which offers a cross-platform development platform for leading Web browsers, such as Google Chrome, Mozilla Firefox, Internet Explorer, Safari, and others. Developers would only have to write their codes once, and from thereon, could deploy their browser extensions across all supported Web browsers.Thank you for sharing.

  39. Ramaiya Vastavaiya is an upcoming Bollywood romance film directed by Prabhu Deva. He is achoreographer, dancer, actor and director known for his works most widely in kollywood and tollywood. He has also worked for a few Bollywood, Malayalam and Kannada films.

  40. This is the perfect blog for anyone who wants to know about this topic. The article is nice and its pleasant to read. I have known very important things over here. I admire the valuable advice you make available in your expertly written content. I want to thank you for this informative read; I really appreciate sharing this great.

  41. Thanks for such a great article here. I was searching for something like this for quite a long time and at last I’ve found it on your blog. It was definitely interesting for me to read about web applications and their market situation nowadays. thanks one more time and keep posting such nice ones in the nearest future too

  42. Our Mumbai Escorts will also be the ideal escort for a time excellence evening, gorgeous and exciting night or dinner in a restaurant. Give us a call we will do the rest for you at any time! 24 hours a day. We trust you are here to experience some of the Mumbai Escorts and companion we are a responsive and helpful Mumbai Escort agency.
    Website: – http://www.mumbaiescortservice-xxx5.co.in
    Call me on: – +91-9167008088
    E-mail me:- mail2itsme@gmail.com

  43. If you are on the lookout for foremost escort services in Delhi, independentescorts-indelhi.escortfiles.com should be the greatest choice. With a attractive variety of eye-catching ladies who possess elite glamour measure, this escort service provides full value for money. We have reputable a compact brand standing over the years with a collection of smart and stunning girls.

    Website: – independentescorts-indelhi.escortfiles.com
    E-mail: yami4u2@gmail.com
    Call on: – 08860907530

  44. Welcome to Sexy Indian Escorts, we are well reputable Escorts in India providing fashionable appointment service unlike any other Escorts Agency like Indian Teens Escorts Agency, and Indian GFE Escorts providing a qualified and high class escort experience. in tactful form as Escorts Services India, India Teens, India Sex Escorts, GFE Escorts etc.
    Website: – http://sexyindianescorts.escortfiles.com
    Email: – yami4u2@gmail.com
    Call on: – +91- 8860907530

  45. I haven’t any word to appreciate this post…. i think this is really a great thing about the fashion. Really I am impressed from this post. I am very happy to read this article. Thanks for giving us nice info. Fantastic walk-through. I appreciate this post.

  46. Nice article I think this article read any user or people perfect knowledge of information how to know the executed by the original artist and represent a resemblance of the original object information. Thanks for share it.

  47. Thanks for another essential posting. Where else could everyone get that kind of information in their normal complete way of crafting? I have a demonstration incoming week, and I am searching for such information.

  48. I haven’t any word to appreciate this post…. i think this is really a great thing about the fashion. Really I am impressed from this post. I am very happy to read this article. Thanks for giving us nice info. Fantastic walk-through. I appreciate this post.

  49. hiii I am stock tips provider,

    Nice article. I was checking constantly this blog and I’m
    quite impressed! Very useful information. Great Post and very good articles.
    You are doing very good job, keep posting articles. I will suggest all my
    friends to go this post. Thanks

    equity tips

  50. hiii I am stock tips provider,

    Nice article. I was checking constantly this blog and I’m
    quite impressed! Very useful information. Great Post and very good articles.
    You are doing very good job, keep posting articles. I will suggest all my
    friends to go this post. Thanks

    equity tips

  51. Thanks to take time to go over this, personally I think strongly about any of it and love understanding more on this topic. As you achieve knowledge, would you mind updating your site with an increase of information, If at all possible?

  52. Thanks to take time to go over this, personally I think strongly about any of it and love understanding more on this topic. As you achieve knowledge, would you mind updating your site with an increase of information, If at all possible?

  53. Hello. Neat article. There’s a challenge along with your website in web browser, and you might want to check this… The visitor could be the market place primary and a massive part of individuals may abandon your superb publishing as a result of this issue.

  54. I’ve been browsing online from more time, yet I never found any interesting article like yours. It is pretty worth enough for me. In my view, if all webmasters and bloggers made good content blog and article as you did, the internet will be much more useful than ever before.

  55. This is the Blog which is really appreciable. You did a great job by sharing this valuable and helpful information with us.Excellent work that’s not really much coming from an amateur publisher like me, but it’s all I could think after enjoying your posts.

  56. I’ve been browsing online from more time, yet I never
    found any interesting article like yours. It is pretty worth enough for me.

    In my view, if all webmasters and bloggers made good content blog and article as you did,
    the internet will be much more useful than ever before.

  57. Zest Studio provides professional quality solutions and services that include web design, web development, software development, graphic design, application development, internet marketing, search engine optimization.

  58. imparting this profitable and accommodating data to us.excellent work that is not by any stretch of the imagination much hailing from a beginner distribute like me, however its whatever I could think in the wake of getting a charge out of your post. click here

  59. The investing world loves to talk about fundamentals, but do you know what it means? … don’t actually matter and investors should rely on a stock’s “technical” merits instead. … (For a more in-depth look at fundamental analysis, check out the

  60. Useful information ..I am very happy to read this article..thanks for giving us this useful information. Fantastic walk-through. I appreciate this post. Absolutely! the best solution rather than doing nothing and losing it at all. All your tips mentioned above is a great help though nice……..
    I am loving it!! Will come back again – taking you feeds also, Thanks..

  61. Appreciate it intended for giving like facts. without a doubt what ones document certainly beneficial. I’m keen on this details that you’ve got presented. in case you have far more variety subsequently you need to write about.

  62. Useful data. I am terribly happy to scan this text. Thanks for giving us this convenient data. Fantastic walk-through. I appreciate this post. Absolutely! The simplest resolution instead of doing nothing and losing it in the slightest degree. All of your tips mentioned higher than could be a nice facilitate tho’ nice……..I am infatuated it!! Can come once more – taking you feeds conjointly, Thanks

  63. Thanks for taking the time to talk about this, I feel strongly about it and love learning more on this topic. If feasible, as you gain expertise, would you mind updating your blog with more selective information? It is exceedingly helpful for me. Roof repair Specialist

  64. It’s extraordinary to see this information in your post, I was having all the earmarks of being indistinguishable yet there was not any fitting possession, thankful now I have the association which I was hunting down my examination.

Leave a Reply