Baidu (BIDU) stock is seriously over-bought here at 550

BUYING PUT OPTIONS ON BIDU.

Goldman Sachs price target has been reached - 550. Either you made money riding BIDU up to 550, or you missed the opportunity. The only opportunity left in this stock is to buy put options. Goldman Sachs has the smartest minds in the financial industry -- you'd be crazy to go against Goldman. Goldman believes under best case scenario the stock is worth $550 per share. You can bet your ass that Goldman is instructing their clients to sell, cash out, and look elsewhere for opportunities.

BIDU's price-to-earnings (p/e) ratio is now 84. A p/e that high hasn't been seen since the dot.com era of 1999!! BIDU's market cap is now a staggering $19 billion.

Basically, if everything goes absolutely perfect for Baidu, (i.e. their earnings continue to grow at this rapid pace) the enormous P/E will be in-line with other tech companies sometime in the year 2014 or 2015. Otherwise, without perfection, and continiued massive growth, this stock is completely overvalued hype. If you think this stock is the next Google, you are wrong. Google is in every country in the world, Baidu is only targeting one country, China. Google has the billions in earnings to match the billions in market cap, BIDU doesn't.

TRADE: Buy put options, sell call spreads, or short the stock -- all will be profitable trades in BIDU.


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