Baidu, Inc. (NASDAQ:BIDU) Flawless balance sheet and good value

Baidu, Inc. (NASDAQ:BIDU) Flawless balance sheet and good value

Baidu, Inc. (NASDAQ:BIDU) Flawless balance sheet and good value

BIDU’s share price is trading below its true value according to its price-to-earnings ratio of 11.65x compared to its industry as well as the wider stock market, so potential investors can purchase the stock below its value.

NasdaqGS:BIDU Past and Future Earnings, August 18th 2019
NasdaqGS:BIDU Past and Future Earnings, August 18th 2019

BIDU’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that BIDU manages its cash and cost levels well, which is a key determinant of the company’s health. BIDU seems to have put its debt to good use, generating operating cash levels of 0.51x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqGS:BIDU Historical Debt, August 18th 2019
NasdaqGS:BIDU Historical Debt, August 18th 2019

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 112.73.

The projected upper bound is: 102.39.

The projected lower bound is: 90.52.

The projected closing price is: 96.46.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 29.8816. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 30.96. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -66. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.

Rex Takasugi – TD Profile

BAIDU INC ADS closed up 2.350 at 96.700. Volume was 46% above average (neutral) and Bollinger Bands were 16% wider than normal.

Open     High      Low     Close     Volume___
95.280 97.400 94.140 96.700 5,928,550
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 97.46 111.07 152.21
Volatility: 52 35 46
Volume: 4,442,906 3,420,102 3,517,872

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BAIDU INC ADS is currently 36.5% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of BIDU.O (mildly bearish). Our trend forecasting oscillators are currently bearish on BIDU.O and have had this outlook for the last 16 periods.

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