AAPL and BIDU both will have blow out ER, but don't bet on ER

Here is why:
AAPL
1) iPhone Strong debut. Over half million sold on first 3 days.
and skyhigh growth potencial. iPhone is the killer products which really change the game. It will bring 40% AAPL revenue in next three years. I think it will donimate smart phone market in two years.(50% occupation.)

2) iMac continuously eat Microsoft lunch and gain market share.
( Now is up to 6% world PC market share) and iBook did the same thing.
Vista is a failure considering the functionality, the cost and efeciency. That open the door for iMac to advance.

3) ipod is still very strong. Rumor spread on street about 6th generation iPod (similar as the one integrated w/t iphone.)

Since AAPl stock price went too fast and too many, it may be the time to take a pause regardless ER result. Buy dip after ER may be the better game plan for AAPL. The option is too expensive now.

BIDU:

1. Strong Qtr. Internet traffic gained 16% over last month. Many new producs put into work and start to generate cash. (music partner to share the profit, move download, community tools.) BIDU continuously gaining the market share at cost of others (Sohu, Tensen, Sina etc.)

2. June Qtr. is one of the strongest qtr for BIDU. It raise both revenue and ER estimates twice and higher than Street consensus.

3. BIDU has historical track record to beat ER by large margin. It's ER growth was faster than revenue growth because of the low cost of human power and low tax rate. It is easy to beat ER estimate for BIDU.

4. Benefit from low tax rate and high RMB appreciation. BIDU only paid 4.7% tax last qtr. and RMB has appreciated more than 3% vs Dollar in past three month.

I think BIDU will has strong price reaction after ER. But not bet on ER, because the option is too expensive. Put on top right after open for daytrading and buy dip after initial pop ,if you want a nice ride,
may be a better strategy.

JM2C