May 1 - More Fall Out From Credit Suisse's Moronic Move

Hi all, in the past couple of trading days I've been doing some more research and can't help but find collective outrage at the stupidity of Wallace Cheung, the analyst at Credit Suisse, who downgraded BIDU to "underperform" a day before stellar earnings.

From Motley Fool, in a article titled, "This week's 5 Dumbest Moves":

This week's bonehead analyst move goes to Credit Suisse's Wallace Cheung, who downgraded Baidu (Nasdaq: BIDU) shares on Monday, just two days before China's leading search engine was scheduled to post its quarterly financials.

Why would an analyst come down on a company with improving fundamentals, after it had obliterated Wall Street's profit targets in each of the three previous quarters?

In response to the article, a comment that couldn't express my views more reads:

Thank you for calling out Credit Suisse and Wallace Cheung for that ridiculous downgrade of Baidu. Everyone is upset with banks and want them held responsible for questionable activity, I think these analysts and research firms should be under the same scrutiny.

Furthermore, here is a line from yours truly posted on the StreetInsider.com's article on the downgrade:

I would love to know what kind of game Credit Suisse is playing, downgrading a stock a day before the earnings call.... which now in hind sight happened to be the driver of a $100 gap up the day after !!!! Either your analysts are really lost OR you had other motives!!!! Were your traders buying all along on the "downgrade" news, eh Credit Suisse?

On a lighter note, BIDU was down $21 on Friday trading bringing the price to $689, and the price of the 800 JUN calls hovering around $8/share ....... about a $4/share paper loss for me. BUT I intend to hold the position.