Can you swim against the flow of the water in the river ?
Even you are a good swimmer , you will definitely fail in the later stage.
Thats what happens to good fundamental stock in the market correction. Just imagine what will happen if you are holding worst fundamental stock … Don’t you think you are doing suicide yourself ..
Its better not to invest any longs during the correction. It is very difficult to go against the trend. Patience is key at this point.
- Baidu has very successful business in China and its currently a leader.
- It has very good fundamentals – EPS/Sales ( 109/80, 174/101, 129/96) for three quarters.
- Fund ownership has increased from last three quarters.
- Now you know why it is not going up ?