AMERICAN ORIENTL BIO (NYSE:AOB)

This company is growing like crazy and has not gone up enough for it.

Good stock which is exposed to rapid Chinese growth over long term. Should also receive short term boost from the economic recovery packages in both the U.S. and China. Stock also appears to be undervalued especially compared to it's peers. Only worry is that management could deplete the strong cash position by making acquisitions in the current economic climate.

This is a stock that has alot of positive

Great sales, good balance sheet and a wide open market. This is one stock that is seriously undervalued.

nice balance sheet/management

The CAPS community seems to like this stock (5 stars currently), and I can see why. With a PEG ratio of only 0.31 and a Market Cap of just under $0.5B, this small cap stock seems poised to do well over the next few years, particularly if a federal focus on health care materializes, in one form or another. From the quarter that closed 30-Sep-08, Profit & Operating Margins are at 24.4% and 31.6%, respectively, while RoA=11% and RoE=18%. All of these are good numbers, and hopefully they'll hold up for the current quarter which will close in less than 2 weeks. Meanwhile, the revenue/share ($2.94) is almost half of the share price ($6, currently), which is a good high number. Indeed, last quarter's Revenue and Earnings Growth figures were 62.2% and 38%. Their EV/EBITDA ratio, which is a measure of how much this company would cost you for the earnings it generates, is a stunningly low 4.96. Generally, I consider any value under 10 good, with those in the 6-8 range as low. Further evidence of a compelling buy is the Book Value of $4.31, which is two-thirds that of the share price. For pharmaceutical companies, however, I give this less credence to that number for there's a lot of play in those "goodwill" numbers... The "Murder By Number" killers for this industry are usually the debt load, but AOB seems to have that under control too, as their Debt/Equity ratio is only 37.3%. Lastly, a lot of insiders own stock in their company, as 21% of the shares are designated as held by insiders. All in all, this stock has limited downside risk and seems poised for a good run, but while we could certainly see some more volatility in the market and further decline in AOB, this stock is screaming: Buy me! Buy me NOW!

[SOURCE: Yahoo! Finance]

Mid to long play-China.

Acquisition company when lots of companies are struggling. This should help through the "recession". Stimulus package in China will increase medical spending 40%+ Y/Y for the next 5 years - even if we go through a nuclear blizzard. So P/E of sub 8 is looking tasty.

I don't speak Chinese. This companies products seem to fit the new image we're given for the people of that country. Of course their economy is a factor I suppose, like ours. Earnings seem to be growing.

This stock has strong fundamentals. I like its Acc/Dist. growth rate at 82%.

The value analysis is much higher than the price. Its EPS and Sales growth is off the chart for the past 10 years.

This stock that is undervalued. Anything under $25/share is a value for this company.

Undervalued with no debt. People are selling off good small caps unfairly.

heavily touted

lots of cash and NOT going to zero.

east meets west

P/E ratio is attractive, good company

cure for cancer???????

AOB is a Chinese focused healthcare company that researches, develops and distributes Traditional Chinese Medicine (TCM) plant-based pharmaceuticals, and more recently both chemical and biological medicines. Despite a global economic downturn likely to extend into 2009 and beyond, China's economy is still expected to grow in the region of 7-8% next year.

Herbal medicines currently account for about 90% of the Chinese drug market and AOB have demonstrated an increasing ability to penetrate that market via successful acquisitions that target valuable products and grow their distribution network.

AOB has experienced extremely impressive revenue growth over the last five years (63%) and looks very good value, currently trading at a PE ratio less than half a more conservative growth estimate of 20%, (a widespread estimate of organic growth). AOB's balance sheet also looks good.

AOB appear to be aware of the risk of a potential future trend towards Western based medicine given their R&D of chemical and biological medicines, and recent acquisition of Nuo Hau that'll give them distribution rights to Pfizer and Johnson & Johnson products. TCM is still by far the dominant market and they will likely be very well prepared to take advantage of any growing trend towards a blend of Western medicine and TCM.

Investors will have to keep a close eye on their continued share dilution, but for now, their impressive growth, acquisition track record and China's economic prospects make it a worthwhile and potentially very rewarding investment.

5 star CAP... China... traditional medicine... long term growth.

Local company in a rather large market with a historical leaning toward naturopathic remedies.