Calls of Note Part 5

- New York Global Securities notes they have had discussions with four of Baidu's (NASDAQ:BIDU) largest distributors. The news for the company thus far is positive in their opinion, and they reiterate Buy rating. The distributors told the firm they are enjoying healthy q/q revenue growth due to the continued success of Baidu's search engine. As a result, the firm is raising both revenue and EPS estimates to reflect the numbers they are hearing from the field. The bad news is that there continues to be significant conflict between the distributor base and Baidu's own direct salespeople. There also is growing-albeit still relatively small-competition from Yahoo and Google. Believes these two forces are causing an increase in price discounting that will, in time, result in lower revenue growth for Baidu.

Notablecalls: Looks like an actionable call!