Baidu.com (BIDU),
the Chinese language search engine company, surged over 14 percent
yesterday after announcing better than expected earnings. BIDU could
be making a double top as it tests its old all-time high.
With a price-to-earnings ratio of well over 100, BIDU's price action
is reminiscent of many high-tech stocks from 1998 through 2000.
Be cautious if you plan to buy the stock at these lofty prices,
because many investors got burned buying at similar prices during
the previous high-tech bubble.
Related Articles:
Price Patterns - A Bubble
Top Is an Extreme Pattern
Price Patterns - A
Double Top Signals a Downside
Price Patterns
- Resistance Levels Are Barriers to Price Upsides
Price Upsides
Often Occur in Three Stages
Posted July 27, 2007.
|
