"Risk be damned... just give me a good story." That's our theme for Chart of the Week.
Back in 2007, we used shares of China's largest air carrier, China Southern Airlines (ZNH), to gauge the speculative frenzy in Chinese shares. As we predicted, the stock was destroyed when the China bubble popped. This week, we introduce a new poster child for China speculation: Baidu (BIDU).
Baidu has a wonderful growth story. It controls a giant share of the Chinese search engine market – you could call it the "Google of China." This makes it a favorite among "hot money" speculators.
Baidu suffered a terrific fall in 2008, declining from $373 to $104. But as you can see from this week's chart, the stock is soaring right now... and is closing in on its 2007 bubble peak. We're back to "risk be damned... just give me a good story."
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