[On :freetrade:] Baidu - BIDU 💻

Baidu is already available but not allowable in an ISA. You can buy it in your GIA though :slight_smile:

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BIDU took a beating today.

https://www.bloomberg.com/news/articles/2019-05-16/baidu-posts-first-loss-since-2005-search-executive-resigns

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Overall I think this is a solid company. At this moment in time there are a lot of on-going issues but I think they will recover from this fine

Yeah, I was hoping FT would add it as well as Alibaba ($BABA) and Tencent.

cc @alex.s

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Seconding what @Prince said - I think it’s solid with some short term issues.

Baidu & Alibaba are both available but not ISA elligible so maybe that’s why you can’t see them?

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Aha! you’re right. I looked at the basic account and both Baidu and Baba are there.

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how comes they’re not ISA elgible?

Was just reading about it this morning. They are ADRs (American Depository Receipts)

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Yes this is the reason -

You can invest in everything in our universe, except certain investments such as Chinese stocks, like Alibaba, Ctrip and Baidu, or the Israeli company Teva Pharmaceuticals. These trade as ADRs on US exchanges and aren’t ISA eligible.

quote from this blog post

Is there any way around this?

Not if you want them in an ISA. You just have to buy them in your general investment account

Just to be clear, it is the case with every UK broker, not just Freetrade.

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It’s one of the most oversold big cap Chinese Stock now along with Alibaba. Bargain or falling knife?

image

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Always do your due diligence, etc etc

Ctrip owns Skyscanner.

Baidu to sell $1bn of shares in travel website Ctrip

Sale of one-third stake intended to boost cash reserves at Chinese search engine group

China’s search engine giant Baidu is selling roughly $1bn of its shares in Ctrip, China’s largest travel-booking website, bolstering its cash on hand after a difficult year for profits.

Ctrip, which owns UK flight search engine Skyscanner and is known as Trip.com outside of China, announced on Wednesday in a stock exchange filing that it will sell 31.3m of its Nasdaq-listed shares that are currently owned by Baidu. The sale makes up a third of Baidu’s stake in Ctrip, and Baidu will remain its largest shareholder after the sale.

Baidu has struggled to maintain its position in the “tech trinity” of China’s most-valuable tech companies alongside Alibaba and Tencent, who were faster to adapt to the mobile age. Its profits have suffered in recent years as a result of scandals over medical advertising and falling advertising revenues.

Baidu, whose primary app offering is its search engine and news feed, is facing harsh competition in advertising revenues from apps that offer transactions and social media data for better targeted advertising, such as Tencent’s WeChat social messaging app and Meituan Dianping’s takeaway app.

In May, the company reported its first quarterly loss since listing in New York in 2005. Cost-cutting helped the company return to profit in August, but its net profits were still down 63 per cent on the previous year.

Source - https://www.ft.com/content/6d2963fa-e04e-11e9-9743-db5a370481bc

I bought BIDU near those peaks. Down 55%. :man_facepalming:

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What is the deal with this company? Absolute bargain or rocky future?

You could buy ETFs or Investment Trusts that contain these shares. Not perfect, but it’ll give you some exposure.