With earnings that would make a parent proud, Baidu, Inc. (NASDAQ:BIDU) reported some unbelievable numbers. It does appear that Google Inc.’s (NASDAQ:GOOG) exit has sparked massive new revenue for the company. Not only did they blow away earnings estimates, but BIDU also upped guidance tremendously for next quarter. The stock is soaring today, higher by $84.19 (+13.50%).
While BIDU rips higher on earnings, the door has now opened on many small cap plays that have failed to indulge in any of the recent run up in stocks. There are quite a few of these. Some have started to run today, others have already run today and even more have yet to run. Chinese small cap stocks have been lagging in a major way recently and are due for a monster pop to catch up to their counter parts in the United States.
Charts of China small caps on the dead lows are everywhere. Many of them are trading well below book and even some below cash. Growth in these stocks should be equal to those in the United States. With a market that has run to insane levels, these China small caps could be the last area where massive returns are possible.
I will not go into which small cap China stocks I like or hold. There are quite a few and many look like big possible gainers. That is for premium members of the Research Center and Intra Day Stock Chat at InTheMoneyStocks.
The U.S. markets rising again for the second day in a row after that brutal sell off on Tuesday. The dollar is getting hit as the Euro recovers from the smack down after problems with Portugal and Spain joined Greece. Volume is also back to the light side.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
