Love it or hate it: Apple

AAPL 268.64 +7.04 +2.69%, low of day 262.01
> Pro: 3G iPad coming next week
> Pro: Souped-up iPhone coming this summer
> Pro: Earnings last week were fantastic (didn't include iPad sales)

> Pro: New revenue stream starting (iAd to take market share from Google)

> Pro: new stores opening in Europe and cellphone-crazy China

> Pro: iPhone has a 70% share of the smartphone market in Japan already

> Pro: Sooner or later, Apple will start its own search engine

> Pro: Forward P/E 17.81

> Pro: Profit margin +21%, oper. margin +29%, ret. on assets +18%, ret. on equity +34%, yoy rev. growth +48%, yoy earnings growth +89%
> Con: Run-up has been extreme, from 192 to 271 in two months; profit-takers abound
> Summary: As safe as any growth stock in our generation. I like it better at 250-255 (pre-earnings)
> Candlestick chart analysis: Wait (today) American Bulls

#13 Google

Time to move Google back into the Top 10. Maybe Top 5.


Sure it looked gloomy for GOOG longs when the stock got close to 400. But did you really doubt them? I didn't think so.

#20 Baidu

Holy roller, Batman. BIDU is on a tear.


I can't see buying shares here. The next bargain sale will come sooner or later.

Top 25: #3 Google

Even here, GOOG is cheap, well below its 200-day SMA (572). Declining volume has me wondering if this run from sub-500 (to 521) is already done.

Top 25: #22 Baidu

Up for three days in a row, but declining volume is a warning sign to the overly bullish. I really like Baidu the company, the intensity and ferocity it has to defend its turf against all Western invaders — that's their mentality and if you don't agree go check out the many Baidu TV commercials on YouTube. BIDU is a bargain right now, but I'll wait first.

Bully for Baidu

Is this the right stop? Do Baidu passengers get off here and wait for a cheaper fare on the next round? Frankly, a stock that soars from 161 to 300 in five weeks is either a) on steroids, b) from another planet, or c) supported by cultists. But really, how does a relatively teeny company not only fend off, but dominate the Chinese search engine space over King of the Warlords, Google?

I have always, and will probably continue to suspect that protectionism is alive and well in the MIddle Kingdom. Is it our responsibility to select stocks that are truly independent? Is it our business to invest (or trade) only in stocks that are on an even playing field? I say no. The rules are in place, and if you don't use them to your advantage, there will be no whining allowed later. That being said, I regret not staying in Focus Media and Sina, but not as much as I lament not being seriously long in CNOOC Ltd. and Baidu.

I figure I'm not alone. How many of us know China is a runaway train and still don't won't dip both feet in the water, let alone plunge in? Is this where BIDU pulls back 50 points? Does BIDU pause, refresh, and then run another 140 points?

There is no logic, though some may try to convince me otherwise.

CNNMoney.com/Paul R. La Monica: The Baidu bull run