I have always believed that the market is a good tool for keeping you humble. At least it is for me. My latest example of "being humbled" comes from Baidu.com, Inc. (BIDU). In a post last month, I looked at the stock ahead of earnings and discussed the stock's ability to post some fairly big moves after earnings. However, as the chart below can attest to, the stock has been stagnant...just stagnant...

Chart Courtesy of Thomson Financial

For the most part, the earnings report came and went with little fanfare and BIDU shares have since been bouncing along in a tight range. While my ego might be slightly bruised, I still think the stock looks interesting. Given the strong run off the mid-March lows, this "motionless action" is allowing the shares to rest. I usually find a consolidation after a big rally to be a constructive sign.

It is also encouraging that expectations seem somewhat subdued. According to Thomson Financial, the average 12-month price target for BIDU is 359. Furthermore, data collected by our quantified analysis department shows short interest is still relatively heavy at 12% of the stock's float. This seems like it opens up the door for the price action to surprise on the upside.