AMERICAN ORIENTL BIO (AOB)

I suggest people read the following blog:

http://seekingalpha.com/article/172921-american-oriental-bioengineering-questionable-acquisitions

I do not like what I read. I will stay clear.

We have own this stock...it has continued to underperform for a long time. I believe it has underlying problems.

Consider SISULA's comments.

Will they be delisted from the NYSE? Maybe I should buy puts in real life?

I would buy at $4.

Just wiil

Just my guess, despite good earnings reports this stock keeps moving lower. This tells me somebody, correction: alot of somebodies know something that us little smucks have no knowledge of. Perhaps a similar story to SAY?

People (talking-heads) have been pitching the "powerhouse of China", but in all the hoop-la a few things have been missed. China is still a communist country with heavy government control and regulation, that can often change on a whim. Also, they are just as much a part of the global economy that the United States and the EU are. Right now we are in the middle of a pretty rough global economic downturn. Couple that in with the inability for a communist regime to respond as quickly and as efficiently as the capitalistic markets and you spell problems. China also has a lot of internal problems too, from rampant corruption to massive pollution. This WILL need to be addressed sooner rather than later, and it will cost the government (and the people) of China a great deal - more than just in monetary figures.

Looking specifically at this market segment - alternative medicine - that "fad" has faded. Sure there are still many people that swear by it, but with all of the problems that other companies in China have had with poisonous substances being found in their products; lead in toys, melamine in baby formula, etc; I don't think the global public is going to be jumping to ingest products from China.

It's hard to believe this Chinese company can become a big player using the name of "American ..." based in Shengzhen, China. Buying a building with US $70M is a proof that the management can't focus its "core" business-Bioengineeering what?

With all the publicity recently about toxic ingredients in Chinese food, I for one would not be comfortable knowingly using Chinese pharmaceutical products, and I think many other non Chinese people feel similarly. Therefore, I am afraid this company, solid though as it appears, will have trouble in the market place.

tiny company with room to grow

china stock

Another great stock is a victim to the market mood

With stock price today at $8.22 and PE=12, PEG is low at 12/40= based on 40% REVENUE growth, also low based on EPS recent growth (~20%), PEG on EPSG = 12/20 = 0.6 so Mr. Market seems to HATE AOB today. Trend is down so I vote down for a few weeks. Overall, I am quite bullish on AOB especially from these levels. I expect I'll buy more Monday. Won't you, too?

I believe this stock will continue to go down to the low 7s or 6s. When the market begins to turn around, this stock will be delayed sligthly but will rebound.

Smells fishy to me. no organic growth, just acquisitions.

Technical trade....no support til $8.50 and $7.50 is plausible. Given market conditions the weak stocks will get weaker is my take on this one. I like the Long-Term (LT) upside for the company, market, etc. Great LT prospects given sales growth, EPS growth, sector, etc. Fool even denotes them with a high ROE and high insider ownership, two keys to LT growth. This isn't an LT rating though :)

Sorry, but I've had enough of AOB's management playing share dilution games. I sat through the one last year, but I'm not doing it again. I had serious criticisms of last year's unjustified dilution and the announced $75M buyback, and this new $125M dilution is the last straw.

As was the case with last year's follow-on offering, this company has more cash than it needs right now, and the $125M follow-on offering is pure dilution with no clear benefit to stockholders. Especially combined with yesterday's announcement of a $75M buyback, this simply makes no sense, whatsoever (other than as a vehicle to line management's pockets at shareholder expense, perhaps).

I will NOT invest in a company whose management I cannot trust, and AOB's management has lost my trust. Goodbye, AOB!

z