Closing my Baidu.com (BIDU) Position for Now

I am completely exiting my Baidu.com (BIDU) position at this point. While the general strategy of the fund is to never completely leave a position it likes, (but instead to lever in and out of names as they go up and down).... since the stock can continue to run far past what one might consider legit, this one has just risen too much. I never had enough Baidu.com in retrospect judging from the magnitude of this run but the stock has risen >20% in 5 sessions ($230 to $280), and is up enormously from my purchase points on Aug 10th (upper $180s, up almost 50%) and August 16th (mid $160s, up almost 70%)

With the crazy run ups in Chinese stocks the past few days as speculators latch back on regardless of fundamentals driving some stocks up 50% in just a week, it's just getting too hot and heavy in here for me; and generally I like beta.

I am exiting here; although the stock certainly should make a run to $300, with hopes of getting back in somewhere in the sub $240 range, or at least 15% lower than current prices. Even on the $8 or so in earnings for 2009, its approaching 40x earnings for 2009 at these prices. Too rich (for me); I will leave it to the speculators. And yes, I know all the bullish arguments - that's why I am in the stock in the first place - but at some point valuation does begin to matter, although we all have different perception of value, but that's what makes a market.

No position