3SOF

I bought in today but I have a few questions about the TA.  Isn't this a head and shoulder and down trending chart pattern ?
Also likely strong resistance likely near the previous up trend line?

i got in again today too. had a nice little profit going before then it dropped like lead in a minute.

technicals...  yes it does look like a down trends...

http://quote.barchart.com/texpert.asp?sym=AOB

Quote from: SmartWrasse on December 09, 2005, 01:49:01 PM
I bought in today but I have a few questions about the TA.  Isn't this a head and shoulder and down trending chart pattern ?
Also likely strong resistance likely near the previous up trend line?

All true. But, you see, the downtrend is too steep and considering fundamentals I believe there will be a strong 10 to 20% rebound soon. That's why I'm in AOB for the 3 SOF Fast Porftolio.

Also note that steep trendline was broken on the upside on Friday, despite the lower close than the open (it may serve as a short term retest).

My plan is to hold AOB for a 10 to 20% rebound from current levels. For today I'll just hold, whatever happens.

SovGEM Limited: Investment and Trading Update

Tuesday , December 13, 2005 02:02 ET

LONDON, UNITED KINGDOM, Dec 13, 2005 (CCNMatthews via COMTEX) -- Investment

SovGEM Limited ("SovGEM" or "the Company"), the emerging market finance house (LSE:SOV), today announces that it has made a $1.2 million investment in American Oriental Bioengineering Inc (AMEX:AOB). SovGEM has purchased 250,000 shares by participating in a private placement (PIPE) organised by Westminster Securities Corporation, a NYSE member firm. The registration of these shares is subject to the registration requirements of the US Securities Act of 1933 and also in part upon the approval of AOB shareholders.

AOB is a leading Chinese producer and distributor of a broad range of pharmaceutical and nutraceutical products for the Chinese domestic market. The company's shares are dually listed on the US American Stock Exchange (AMEX) and Archipelago Exchange (ARCA) markets. The Company's corporate office is in New York and its headquarters (production and R& D facilities) in Harbin, China. By the end of 2004 the Company had a total of 800 full time employees. The Company has grown its operating income from $10.2m in 2002 to $20.86 in 2003 to $31.96m in 2004.

SovGEM bought 250,000 AOB shares at $4.80 per share. Before news of the financing was announced AOB had traded as high as $7.68. The investment is part of a $60mm private placement that AOB intends to use to finance acquisitions and for general corporate purposes.

Trading Update

SovGEM joined AIM in November 2004 with a net asset value of 12.77p. Following its successful investments in Harbin Electric (OTCBB:HRBN) and Bodisen Biotech (AMEX:BBC) its net asset value as of November 9th 2005 is 18.1p , an increase of 41%. SovGEM initially purchased 450,000 BBC at a price of $4.50 in November 2004; currently we hold 70,000 shares that closed on 9 November 2005 at $12.40. In February 2005 SovGEM purchased 500,000 shares of HRBN, today we hold 200,000 shares valued at $7.80 at the close of business on 9th November 2005. We remain extremely excited about the potential news flow from these two companies as well as the future of AOBO.

Commenting on the investment, Hugh de Lusignan, Chief Executive Officer of SovGEM, said: "This is excellent news for SovGEM as it corresponds with our ongoing investment strategy of building a portfolio of investments in fast growing companies servicing the Chinese domestic market. Furthermore, it demonstrates our ability to source deals through an enlarged network of partners."

http://www.knobias.com/individual/public/news.htm?eid=3.1.6415031bb826fc74697f3ee68e5346e2c14edd696db065ec55666a6c9151d83b

Thanks for that article la-onda 

Institutional investors bought 60 million shares in a private placement at $4.80. I don't think AOB's share price will be under $4.80 for long, since if institutions liked the stock at $4.80, they like it even more at $4.43.

They will probably support prices at current levels and then retail investors will push this undervalued growth company higher, at least higher than $4.80.

But, probably not much higher than this level for the short term, since people will always be worried that institutions are looking to sell their shares with a small 10 or 20% profit (doesn't look like it).

I bought AOB at $4.55, my plan is to sell it at $5.46 until the end of the month (the ascending trendline on the chart below, previous support, now resistance, is standing at $5.5).

...just an information to all of you who want to visit the AOB message board:

Here is the link:
http://messages.yahoo.com/bbs?.mm=FNNS&action=l&board=17928841&tid=aoboobamericanorientalbioegineering&sid=17928841&mid=7699

You have to click on 'Last' then 'Msg List' to enter the actual message list.

Enjoy.

Thanks, that is the first time I have actually been able to see the Yahoo MB for AOB, even though others have posted links on Yahoo for it.

I dont know what is going on with the selloff today, if it wasnt for NVAX jumping I would be pretty unhappy about it.  I am in at an average of 4.90, but still believe it gets to David's target.

Thanks for the link to AOB message board.

I have traded this stock three times, two with good results, however I am in at a very poor position @ 6.99 with a rather large number of shares.

At least I can find out if I will ever get out of jail.

I placed my trade on AOB, now I have to manage it. It's not doing well, so I have to limit the downside risk. I don't want to see it closing below $4.10 or I'll dump it.

Still expecting to sell with a profit around $5.50.

American Oriental Bioengineering Inc. Options to Trade on Chicago Board Options Exchange (CBOE)
Wednesday December 14, 8:30 am ET


HONG KONG--(BUSINESS WIRE)--Dec. 14, 2005--American Oriental Bioengineering Inc. (AMEX: AOB - News), an emerging Chinese company that produces and distributes a broad range of pharmaceutical and nutraceutical products, announced today that on Thursday, Dec. 1, 2005, options on the company's common stock began trading on the Chicago Board Options Exchange ("CBOE"). The CBOE is the world's largest options marketplace.
American Oriental Bioengineering options trade on the January expiration cycle with exercise limits set at 25,000 contracts on each side. The Designated Primary Market Maker for AOB is Susquehanna Investment Group.

In the last six months, AOBO has taken several steps to improve the visibility of the company's stock. On July 18, 2005, the company's common stock began trading on the American Stock Exchange. On Oct. 26, 2005, options on the company's common stock started trading on Pacific Exchange and most recently on Nov. 11, 2005, the company's common stock was approved for dual listing on the Archipelago Exchange ("ArcaEx"), a facility of the Pacific Exchange, and began trading on ArcaEx on Nov. 11, 2005.

"We are pleased to have our options traded on the largest options marketplace, the Chicago Board Options Exchange, and we believe this is another important event as we continue to improve the visibility and liquidity of our stock," commented Tony Liu, chairman and CEO of American Oriental Bioengineering.

May be the mm wants to push the price down to around $4.0 to make all the money in options.

Also from the chart, the support is at around $4.00.

Unless I see bullish candlesticker reverse signal, will not take a position.

Just keep an eye on AOB, take a position when necessary

Thanks for posting the news la-onda  Thanks for your analysis shawFund and Terlisa 

Well, I already bought, so now I'm managing my position. I'll take a loss if the stock is set to close below $4.10 (maybe I'll take it when shawFund buys his shares, that's the market), and I'll take profits around $5.50 if I get that chance.

AOB's chart is getting better, maybe the time for a serious push back up has arrived. I'll keep my trading plan of taking profits around $5.5 or take a loss if the stock is set to close below $4.10.

I think it's time for entry ...goodluck traders