Trading <50% of tangible book value. The head of technology did recently leave for JPM. Potential overreaction to this news item.
As per NOBL trade plan
5k as a value position, 2.5k as a momentum trade.
API has hit our value buy price so we topped back up to our full value size.
As per DBK strategy spotlight.
Sold out of BIDU @ 227.50, this short term target price was decided using a comparative valuation of BIDU with MSFT.
Using the same valuation method, we found MSFT was trading at around 100% premium to its intrinsic value. Our predictable intrinsic value for BIDU is $130 (with a couple of free options in there). BIDU doesn’t quite have the global reach that MSFT does so we set our profit target at 75% premium ($227.50), rather than 100% premium.
In the medium to long term BIDU share price could very well exceed $227.50 but that’s not our alpha. There’s many more short term opportunities in the market.