Investment Ideas for the Beijing Olympics

3/24 - "Baidu is the search leader in China, with share estimates north of 70% in what is now the world's largest internet market. Future growth prospects for the company are bright and will get a turbo boost this year from the Summer Olympics.

In spite of the rosy future, near term trends indicate Baidu shares are likely to remain anchored in the $200 to $225 range and could breach the $200 level with another market sell off. If the $200 support level is taken out, short sellers could quickly drive the shares down to near the August 16th low of $161...Should a sub $165 price level be reached prior to the company's Q1 earnings release, it will represent a good buying opportunity as at this level...From these levels, I anticipate the shares will climb back to the $240 to $250 range prior to the start of the Summer Olympics."

2/25 - "I love buying great companies near the bottom of the barrel," says resources expert Eric Roseman, who has added Canadian-based Cameco Corp. (NYSE: CCJ) to his buy list.

The edtior of The Commodity Trend Alert explains, "Cameco, the world's largest uranium concern, is a gem, right in the middle of a long-term earnings boom amid high energy prices and a massive backlog of orders for its raw material used to feed nuclear reactors."

"I think uranium prices, which are down 45% from their highs of $136 last year, will recover. The trend for cleaner-burning fuels is a major secular trend that's unstoppable...Uranium is here to stay and the world, including China, wants their share. Cameco Corporation is a buy up to $35."

3/1 - "During 2006 and the first part of 2007, I had a significant amount invested in Chinese financial, industrial, and consumer discretionary shares. At that point, valuations became too rich for me and currently I only hold Guangshen Rail (GSH)...valuations on some Chinese stocks still appear to be unsustainably high."

"...slowing world growth and the decreased rate of demand will also impact the Chinese economy, just as rational expectations will impact the Chinese market. As the economies of the developed world slow, it is unrealistic to believe that the economies of Asia can totally decouple from the effects of that trend...Yet, as mentioned earlier, there has already been a large correction in the value of Chinese shares."

"At this juncture, it is too risky to forecast the general direction of the Chinese market...However, careful research should be able to isolate a few reasonably-priced companies that offer potential for significant appreciation...At the moment, I am watching China Life Insurance (LFC), China Petroleum and Chemical Corp. (SNP), and Xinyuan Real Estate (XIN), among others. Of the higher P/E shares, Focus Media (FMCN) is one of the few that have my interest."

3/25 - "We are raising our 1Q game revenue estimates by $4 mn to $30 mn (TLBB accounts for $27 mn), and see further upside risk, as our checks suggested strong growth in usage and ARPU for TLBB so far into 1Q, following the release of the expansion pack on Jan 16...Our 1Q revenue and GAAP EPS estimates increase to $72.8 mn (up 11% qoq) and $0.42, respectively, from $68.7 mn (up 5% qoq) and $0.34. Consensus estimates are $68.4 mn and $0.36."

"During a recent investor tour, we met with Sohu management in Beijing. We believe so far into 1Q, the quarter is tracking well, with TLBB (online game) likely to outperform company guidance again and branded advertising to generate solid growth. We believe the high-margin game revenue will also likely drive EPS upside..We maintain our 12-month target price at $61, based on 26X our 2008E non-GAAP EPS, vs. prior multiple of 31X. SOTP (sum of the parts) analysis suggests 22X is fair, due to the high-margin/low-multiple TLBB game projected to contribute over 65% of 2008 earnings."