RunawayTrader

Smart Money Will Buy and Hold BIDU

“It was the best of times. It was the worst of times.” These lines from Charles Dickens’ Tale of Two Cities, came to my mind today. It was probably just a freak accident that demonstrates the demented condition of my aging my neural pathways. It makes me fearful my synaptic gaps have long since given up firing the proper cylinders.

At any rate, the lines came to mind when I was reviewed a blog I wrote just about a year ago when I had runaway to Fallingwater, the house that Frank Lloyd Wright built in the Laurel Highlands of the Allegheny Mountains.

I remarked in that blog, as I usually do during my getaways, how my trades pay for my travels. In this instance I was holding Baidu (BIDU), the so-called Chinese Google, and was looking for a gap-up the next day, which I not only got, but which paid for my entire trip. (P.S.That’s the way runaway trading is supposed to work.)

But two things really surprised me: Here it’s a year later and I bought BIDU just this past Friday looking for the same gap-up Monday morning. Some things never change. But the second surprise was even more powerful: I had purchased shares of BIDU at $249.

That, I guess, is the best of times, the worst of times. Why? Because BIDU hit a triple-bagger during the intervening year, topping out at $716+ before it split 10:1 last week. And that’s terrific if you were holding BIDU for 52-weeks. But it’s bad if, like me, you were playing a year-long game of hide-and-go-buy this past year. Had a purchased – and held – a measly 100 shares I would have been 50-Gs richer now.

Ah, but that’s hindsight.

Which brings me to today’s advice. I think BIDU is going to keep on going and I (and you) would be well to Buffetize this stock—meaning, buy and hold. I think BIDU will double again. Maybe more. With Google pretty much out of the market, they’ve got practically no competition and this is a stock that likes to roar louder than the indexes:  Beta: 1.93

I’m predicting you’ll clean up with this trade. And if I’m wrong, write me. I’ll be somewhere between Timbuktu, the Appalachian Trail, and Nepalese trail to Mt. Everest basecamp. And the meantime, here’s a little more Dickens to cheer you up and wonder, “what in the hell is this guy talking about?” This guy must be a day trader to go through so much angst.

“It was the best of times, it was the worst of times; it ws the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of Light, it was the season of Darkness; it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us; we were all going directly to Heaven, we were all going the other way.”

Charlie the Runaway Trader