Snow, Baidu, Chesapeake, Pilgrim’s Pride
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(Update) Felt I am like a car-thief today: had to climb from back seat to front seat, because the front doors were frozen due to snow. Don’t know how the by standers felt?
(Original) It started to snow here in St. Louis, yesterday morning I saw a little bit snow on the car, this morning I found more snow when I got up.
(Full size pic here)
The trouble for Baidu appears to be mounting, as lawsuit on the Ads came in. The information on Baidu (Nasdaq: BIDU) is quite effient actually, compared to most other Chinese ADRs listed in the US. I still remember the hype around its IPO in Summer 2005, one year after Google’s highly successful IPO. As an old Chinese saying goes “higher climb, sharper drop”, or a western saying goes “quick rise, quick fall”. Same philosophy goes to my CROX stock trade last year 🙁
Not many people in the investing communities know about this baby. It’s a large chicken producer in the US. It filed for Chapter 11 today (Bloomberg). The reason? The rise of grain price. One may wonder didn’t commodity price come down quite a bit lately? That should help right? Well, not necessay. It depends on whether they hedged (or speculated) on the grain future market or not. If they bet it on the wrong way, like many Airlines did with the oil, they would lose shirt and pants easily. I am not saying this is the reason for Pilgrim’s fall. But certainly a possible factor to aggreviate its financial problem.
A while ago I said I didn’t like it because its CEO was forced to sell his CHK stock due to margin call. Well, it appears now the company has to raise more capital by issuing more stocks (more dilution), at current $15 a piece.