3SOF

The 2 numbers I looked at were the 50 DMA (I show $5.26 on Stockcharts) and the 38% retracement level ($4.76 off the Nov. 14 high of $7.68).

The buying volume surged twice late day when it touched 5.30 so feeling comfortable with that for the time being (That time being now and market close tomorrow)

As Calvern pointed out, though, this could easily slip another 10%.
In the bigger picture, I'm sure it's headed north, just don't know if I picked the bottom or not to get in.

AOB: Short Interest UP 33.3% to 385.8K in Nov 2005

Monday , November 21, 2005 16:15 ET

According to new short interest data from AMEX, short interest for American Oriental Bioengineering Inc (AMEX: AOB) INCREASED 33.3% to 385,759 shares for the month ended mid-November, 2005.

SYMBOL       OCTOBER     NOVEMBER        CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
AOB              289,320         385,759         +96,439       +33.33%           1
Based on AOB's 20-day average daily share volume of 2,712,235, it would require approximately 1 day(s) of buying to cover this short interest.

nice to see AOB hit $6 again. i didn't think it would happen this month... but then it's a very green day all around.

i think based on the close and tomorrows opening, i might just sell the rest of my position and move on.

Yeah, I went ahead and sold today at 5.98 after holding just a day.  I expected I would have to average down but AOB suprised me with a nice gain, and I will take it.  I will keep buying for sure if it keeps getting discounted.  Still a great stock long term IMO. 

i came across a post about AOB on another board on the yahoo MB.  the person was "pumping" that AOB was going to do "well" next week.

total pump?

is there rumblings about things?

thanks

These sh!ts just did a secondary offering.  The stock is plumeting.  They suck.

http://biz.yahoo.com/bwml/051123/235423.html?.v=1

WOW!!! WTF
YOU WOULD NOT BELEIVE THIS, but i was happy at it at 6.15 so i put in a sale order so i could buy another stock. I WAS SURE IT WAS GOING TO GO UP but i had a gut feeling.  When my order did not take i looked at ameritrade showing 5.00  and thought it was a mistake.  So nice gut feeling, just seconds too late.  WOW that is 2wice AOB has burned me in 7 days. 

Yup, I agree.  Stupid idiots.  It triggered my stop, so i'm out at $4.90.  I still made some profit, but it hurt to see $4000 disappear in a few minutes.

NEW YORK (Dow Jones)--American Oriental Bioengineering Inc. (AOB) priced a 12.5 million-share private placement at $4.80 a share, well below the company's price before its stock was halted Wednesday afternoon.
  The company's shares are halted and last listed a price of $6.14.
Resumed trading shortly, and triggered my stop.

Brigitte

Man, I thought my stocks were having a bad day!

Same freakin boat for me too
Can anyone explain to me what happens with a stock placement like this, and why they halt the price, freezing all trades, forcing everyone holding to take such a hit.  It didn't even seem like you could trade out of the drop.

How does a thing like this work???

Why don't they make the offering at the current price?  WWould make sense - more money for them.

And just when I thought AOB was recovering....

Quote from: LuckyFish on November 23, 2005, 03:28:55 PM
Yup, I agree.  Stupid idiots.  It triggered my stop, so i'm out at $4.90.  I still made some profit, but it hurt to see $4000 disappear in a few minutes.

Hi Brigitte,

Good to see that you still had a good trade. I personally don't use stop/loss. I don't think it works unless you keep it very tight (update every day).

The private placement today was indeed a surprise but I don't think these guys are stupid. Consider it a riddle. AOB's balance is loaded with cash so if they are selling shares they must have a reason. Today they gave the first clue (which is that they need $60 million) they have still not told us to what. My guess is that there are some privatizations coming up and they want to be in a position to take advantage of it. These deals are always surrounded by secrecy, which might be why they only gave us a clue, but I wouldn't be surprised if AOB is trading higher than before the announcement a couple of month from today.

This is obviously only speculations. They might also sell shares to buy a yacht to the Chairman but.....

Mike

Quote from: stopthemadness on November 23, 2005, 11:31:51 AM
i came across a post about AOB on another board on the yahoo MB.  the person was "pumping" that AOB was going to do "well" next week.

total pump?

is there rumblings about things?

thanks

stopthemadness,

I guess I would have to see what they were talking about, but somehow it looks like AOB is going to get pegged to the $4.80 range for awhile. 

http://biz.yahoo.com/e/051123/aob8-k.html

As $6M divided by 12,500,000 shares will be $4.80.  And here I was thinking I should have held the stock longer than a day because I had seen it hit $6.30, I guess I got out lucky after all again.  OTOH, the stock did go up today to $5.16, so maybe it wont be pegged to $4.80?

I will say that AOB is a bit tricky because they had outstanding warrants in September that I didnt know about when I was holding it long term at a buy in of $5.26, and the selling of the expiring warrants sent the stock to $3.50.

Now it looks like they are diluting the stock, and doing it at a low price.  At least when NVAX diluted recently it was around the price the stock was trading at during that time.  I dislike dillution at lower prices.

On the other hand, maybe that is the last of it, and next week will be a rebound?  Anyway, I doubt people on the boards have much proprietary info as this is a chinese stock.  Still, if you remember where you found the message, I would be interested to take a look. 

I think I would have bought at $4.80 for sure given the news, but need to think about my next reentry.

Let's see, those people paid for $60M probably have a lot more information than we did. Friday's close is merely 7.5% higher than their price at $4.8. So our downside is pretty limited now, while the upside is still $7.84 with PE=16 at forward earning of $0.49. The picture will dramatically change when they announce acquisition with accretive earnings.

Well, I am back in again now here well under $5, hopefully any downside is limited to $4.8 as we are guessing.  The stock is now cheaper than when I bought my initial positions months ago, didnt think I would get this chance anytime soon.  I will even average down at this point if it does go a bit lower.

   tokyopua,

    I am with you. I have read their reports and looks last time they had a private placement is was to acquire a company i can't pronounce. I think they are focusing hard on expanding and growth potential. Looking at the numbers and i could be off but even with the dilution of the shares their P/E is still around 28, that is not outrageous. i will looking to purchase more around the 4.80s level also. The people not happy with this are the short termers looking for a quick buck. GL