Patrick Schultz
Shares of Baidu could double and then double again, equating to a price of $1,200 or 260% higher, and still be only one-fourth the size in market-cap terms of Google.
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How would I play it with the stock trading up today? Chase shares up here? Definitely not. I recommend a two-pronged strategy:
To begin, take a look at the other Chinese internet plays, Sina (SINA Quote - Cramer on SINA - Stock Picks), Sohu.com (SOHU Quote - Cramer on SOHU - Stock Picks) or even a Netease.com (NTES Quote - Cramer on NTES - Stock Picks), as the strength in Baidu shares will lift the whole group. These stocks have been beaten up and are ready to rally.
For Baidu itself, I would wait on the inevitable pullback and use the market's chronic short-term memory loss to your advantage. Wait for the enthusiasm to wane and shares to fall below $300. And then pounce.
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