AMERICAN ORIENTL BIO (NYSE:AOB)

CAPS Rating: 3 out of 5

The Company, together with its wholly owned subsidiaries, is a pharmaceutical and Traditional Chinese Medicine company which develops, manufactures and commercializes both plant-based pharmaceutical and plant-based nutraceutical products.

Recs

5
Player Avatar gilboy7 (< 20) Submitted: 2/3/2011 1:18:16 PM : Outperform Start Price: $4.64 AOB Score: -68.61

I believe the Market is undervalueing AOB's shares at .4 book value and expect an upswing from here. AOB is one of China's top drug companies. They have a stabilizing cost of revenue down from 26% over the last few years to 6%. Management is investing more in R&D than in the past and allocatig less capital to purchasing other businesses to gow market share. Government regulations play a part in keeping revenues down. Products such as Jinji Capsules and Boke nasal spray both won awards as China's top branded drugs in 2009. Read: http://seekingalpha.com/article/243664-is-american-oriental-bioengineering-s-business-model-sound?source=yahoo , for more detailed analisys on AOB.

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Member Avatar jamespeer (28.02) Submitted: 3/15/2011 10:31:03 AM
Recs: 0

I thought that too, but I have come to the conclusion that this stock is total garbage. By far and away the very worst stock I have ever invested in, glad I got out when I did, and I have to thank sisula for his research and comments which helped me turn my back on this piece of junk for good. A company that misses earnings estimates quarter after quarter for two years doesn't deserve a cent of anyone's hard earned cash.

Member Avatar HedgeFund007 (98.20) Submitted: 3/15/2011 10:31:49 AM
Recs: 0

james well said I agree

Member Avatar Spiceman53 (69.68) Submitted: 3/21/2011 10:16:27 PM
Recs: 1

I've lost my shirt on this, too. I'm holding, hoping for a rise in value, in time. Crossing my fingers...just to break even! Did the FOOL ever say or scream SELL?!?! If so, I sure missed it.

Member Avatar Donegaler (< 20) Submitted: 3/31/2011 5:30:24 PM
Recs: 0

Likewise hanging in but wondering what can stabilize this stock. Where is the bottom? Did FOOL ever say sell?

Member Avatar Clément (< 20) Submitted: 4/2/2011 1:03:36 PM
Recs: 0

I am also a big loser with AOB. But I keep my position, having seen and sold losing stocks before just to see them multiply by 4 or 5 afterwards.
AOB is probably one of those.

Member Avatar Smalltime84 (< 20) Submitted: 4/2/2011 1:47:26 PM
Recs: 0

the bottom is 25c. at that price I will buy the company and liquidate. come to think of it you could liquidate it now and make a mint.
most of the money is in cash/equivalents. I'll take my chances

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