Wednesday, October 26, 2005

GSIC Update

GSI Commerce (GSIC) said today it is cutting Q305 and full year earning guidance, also said Q3 report is delayed due to some internal control issues, which will have non-material impact on past earnings. Stocks fell from yesterday's close, 19.05, to as low as 12.50, it closed at 16.46.

Below are my updated estimates based on new guidance, I maintained my previous 'Neutral' rating and 17$ 12-month target.

GSIC Q305 Pre Earning Update Posted by Picasa

BIDU Q32005 Report

Baidu reported a good quarter in my opinion, but since the stock has been running far ahead of the business itself, it is very hard for the company to satisfy the greedy public.

I am holding underperform opinion on this stock and raising 12-month target from 16 to 35, based on 25 times of 2007 estimated EPS.(Here is my previous update)

The major risk is slower growth rate than expected. I am estimating 115% YoY growth for 2006 and 80% growth for 2007.

Please note: BIDU closed at 81.05 today, which is not updated in the following report:

BIDU Q32005 Posted by Picasa