Stock Talk - Matt Argersinger, Motley Fool

We're joined by Matt our -- from the Motley -- got a couple stock picks that we're gonna share with you Matt good morning and welcome to the show. OK I think he's always the -- amounts currently in the first one that we're gonna talk about is the Chinese version of Google called bite to and it's trading at a 122 dollars this year. Now do you remember right now perhaps. -- do here Google was not allowed to to operate in China yes I do remember that and I have heard -- And FaceBook also is not allowed to operate in China so where doctors and mad about -- do now. Matt good morning and welcome to the financial exchange carried one. -- -- Baidu is when he -- your picks this is basically the Chinese version of Google is not. Why do you like it 122 dollars a share to 42 billion dollar company. Right why I like it right now on I mean they had agreed but that was a great first quarter. -- report a few weeks ago revenue was up 35%. -- but the in the stock got pulled off to analysts were looking at the inland revenue as a small earnings speed he wanted more. And I just. Look at the stock and -- are still expecting revenue dropped 56% this year and right now you can get stock for less -- -- times earnings it seems like into the big bargain. Are you comparing it to rule is that the price matrix you're using. Yes a little bit break -- it away by it even more dominated me just you know they have an 80% share of paid search and China and go to the the upside Baidu I think a lot bigger because if you look at by the bread and butter they're really serving the small and medium sized businesses in China we're paying for. You know top position in their searches and there's still an estimated forty million of those business in China. And -- has less than 1% of them right now. Are they gonna -- just in China or is this something where they'd like to go to Singapore and other parts of the world. If there are some opportunities to do that. You know in places like Vietnam cinque ports you mentioned but he really is the China story -- -- -- -- enough -- in China right here. To really justify getting into the stock. And can now zillow is another victim this company Disco public is did they do an IPO recently. -- just went public last year. And it's you know we all know -- it's got. It -- a hundred million homes across of the United States you provide the estimates. Big the growth here is really exciting with ability and their revenue was up from under 17% you have eleven. You know -- They make most their rent their revenue from advertising but really be exciting story here is their lead generation business other market based business which was up over 200%. This is where agents lenders. Even contractors can come -- those network. And paid for top positions or get beads from potential customers were using -- site so that's a really potential lucrative market for them. I don't think I understand that Kazaa and I've looked at that site I use it just to kind of check out what real estate prices are in my neighborhood. How how is generating leads for contractors and realtors. Well sure so when you're when you're coming on and you're looking at you know specific neighborhoods or even sometimes entering information -- home. What what happened is that that goes in the old network and -- knows the U. You know exactly what you might be looking for the big elaborate social local agent for you don't show. Potential contractors and so any any local kind of advertising that you might be interest today and in particular the servicer housework. Really think a listing your housekeeping note that Annika but the right. Advertising in front. What is this is this gonna have a similar effect immediately zillow. Will this put realtors out of business because I'm thinking about what the Internet did you travel agencies is zillow gonna do the same thing to the roasted industry. I I think it I think it very won't might be it -- disrupting and mean you're you're giving free and wide access to information that. Really increase -- only privileged few and now the public -- access to it you know there's a huge network effect there because of customers come -- Enter information and updated database which -- -- nothing. It makes and there are you know mixed information even more attractive. And it just makes -- more stickier site. And yet because in the past he had to go to our realtor to get your real estate listed with MLS right now -- you can go to zillow. And put -- on it doesn't cost anything is I understand it right. From interest and so we have -- a price target it's -- 42 dollars now it's been as high as sixty during the last year. Right I think you know I I think right now you -- in the stock -- -- -- -- -- -- -- -- -- -- -- -- -- that would be that the -- the -- -- the if those stocks are at certain I think is about 50% outside. How much of the company did they sell when they went public -- I'm not sure I think I wanna say I -- insiders still -- -- occurred. Not so. So it's not gonna get bought out benefit if the insiders still -- a third of the company it's Alex somebody's gonna buy a certain. Like he did Google's knocked in a bind just -- say we're we're gonna own the real state engine. You know I mean it's it's it's certainly a possibility and if -- -- a bit premature but. But no I don't I don't see that happening any time soon. All right well we appreciate your time thanks Matt. That's Matt our singer joining us today history stock picks Baidu which is. It's the the Chinese version of Google. And then as zillow which is a cool site -- -- -- -- -- and I'll I was on at this weekend -- yeah it is through the interest the you can check out. Like you say your mom says -- A lot and I'm thinking about list in my house for sale and it -- you can you can check it out my dad has it on his -- only does so like an -- you know we're we're golfing -- And it and it lasted Thanksgiving or out on the golf course -- it will -- at that house is for sale Hamachi these were the good -- phone -- -- will give you all of the houses in the area and what they sold -- you know what they're going to sell for in recent debt at he said 412 and -- him. It's -- by boat I've got -- a MacBook is your driving through a neighborhood right it's. You can have it on your phone in and tell you the value of the of the whole -- become your driver clearest its dockers is and -- is 2012 is it kind of warrior did that I'm only gonna creepy yeah. And get everybody knows how little I was on a bike ride and I saw a couple homes in the neighborhood up for sale. And I thought houses aren't just going for the street I got home pulled up zillow in the air let's. Both homes and you go in for an inside tour let's say one thing and I'll give you that he here's a stat as it relates to US households. The number of United States households that old homes declined by 440. Thousand in the year 22 and we don't have the numbers for when he left but in the year 2010. The number homeownership. Residents declined by 142. And all those people go out and our sense that's from 2009. The number of renter households increased. By five point four million in the same here I believe it right so and when he and yet population growth. So he had five point four million increase in renters during the year the two groups combined. And are equal to 117. Million households so you are one of the 107. Her home on the popular -- -- -- but that's a -- yet it that's that's an an amazing stat to think that. The number of people that actually owned their homes in in his in his situation we've got a rising population. The number of people that old homes. Declined by four all because of the jobs bury it all goes back to the job it really does you know that they're both intertwined bright they're connected in a sense of that number goes down again for 2011 the number so yup because it was 2011 was still a year for foreclosures. I think 2012. Let's too early Italian pay act and not in hazard against it and I think we're starting to turn it around a sense of the stats I've been reading as it relates to host its us as a matter of fact. We've got the yeah housing index coming out at 10 AM -- left and wanna get back to one of the techsters agrees you know a 508 saying -- bearish about the market but he doesn't think that employment has picked up enough. So that and that is connected to the housing market as we now -- anyone says the S&P -- going to 1260 bucket I shall dwell seventy is the next level of resistance that doesn't mean it's going we'll talk about that when we come back this is the financial exchange.