Netease.com Inc. (Nasdaq: NTES, stock), a leading Chinese Internet and online game service provider, reported its first-quarter profits fell 10% due to higher tax charges from a new income tax law despite a jump in revenue. Shares of NTES sold off sharply by 6% to $22.60. The weakness in shares of NetEase.com spilled over into China’s search engine giant Baidu.com, Inc. (Nasdaq: BIDU, stock) – what did they say about when it rains it pours? Traders pushed shares of BIDU down by 5.6% to $335.
So, when you saw such opportunity you simply just can’t ignore it, can you? Scalped the BIDU Jun 340 Put Option, entered my limit price to sell (close) and once it got triggered, there’s another happy person for the day. If the latest reverse in trend is true, then you should start filling up your bullets as well because the next support is $300, that’s $35 bucks down and a great vacuum for you to make money. If you still do not know what I’m talking about, the support of $350 had been breached yesterday after BIDU found the $380 too tough a target to push, silly.
Having said that, Baidu.com could be teasing you and it was a temporary setback after the disappointment from Netease’s earnings. Just keep you eyes wide and open on this stock and scalp it whenever the opportunity presents itself. It was not many months ago when everyone scream about China’s stocks. Suddenly everyone is quiet. One of the smartest investment firms, Goldman Sachs, appeared to have found a new sparking diamond and it’s neither China nor India. This new country was said to have the potential of GDP growth at 8% per annum from 2007 to 2020. It’s not Malaysia, silly you.
This country, dubbed the “The Next Asian Tiger in the Making” and the “Next Economic Miracle” is none other than Vietnam. Yeah right, everyone knew that but how to take advantage of it even if the research by Goldman Sachs is true? You can’t because it’s hard to find a Vietnam-related stock listed in U.S. stock exchange, let alone a pure-play stock. But you can see lots of American companies such as Intel and General Electric, not to mention many more Japanese companies have setup their business playground there. Can someone please wakes Malaysia up from its’ fantasy dream?
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May 23rd, 2008 by financetwitter
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