AOB

[tokyopua]

Se7en,

Thanks, I appreciate you posting the earnings and the linn.  I missed it on Yahoo, but its STILL not shown to me in my "portfolio news" on Etrade!!!  That is a serious issue for me, does anyone here have a reliable way to get real time news?  Or has anybody else had problems with Etrade news?  I dont want to have this happen again!

[Stocky2000]

Picked up some shares at 5.81 

Thanks for the dip...i saw it coming sold last week 6.94

[Se7en]

Picked up some shares at 5.81 

Thanks for the dip...i saw it coming sold last week 6.94

Do you have a crystal bowl if you can see a 30% drop in less than 1/2 an hour coming a week from now??? 

[Stocky2000]

seven

aob seemed overbought the last days.....and i never hold through earnings after i got burned sometimes....so my tactic  with fast growing stocks is to sell 1-2 days before earnings especially after a good run like aob had...if i bought it at 1.50 sure i wouldn not have sold today....but i never hold long
And as you said earlier...sell the news is getting fashionable

Your picture on the side is that from the football club FC Brügge:) ?

Switzerland has to play in Istanbul this wednesday against Turkey....well we won 2:0 home. Should be enough hopefully...cheers

[Se7en]

FC Brugge is called FCB, but my logo is from a far better team and they are also called FCB, FC Barcelona!!!
Yep, that was a very good and a bit of a surprising result against a strong Turkisch team, good luck for the return match!

[Se7en]

http://biz.yahoo.com/bw/051114/20051114006105.html?.v=1


American Oriental Bioengineering Inc. Announces Record Revenues and Earnings for the Third Quarter of 2005
Monday November 14, 2:58 pm ET
Revenues Increase 81.9%
Net Income Increases 65.5%

HONG KONG--(BUSINESS WIRE)--Nov. 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, today announced financial results for the third quarter and nine-month period ended Sept. 30, 2005.

Key Financial Indicators
(all numbers for this table in thousands, except share and per-share
amounts)

                               Q3 2005     Q3 2004   Percentage Change

Consolidated revenues          $13,407     $7,373          81.9%
Cost of revenues               $4,912      $2,436         101.6%
Gross profit                   $8,495      $4,936          72.1%
Total operating expenses       $3,856      $2,284          68.9%
Income from operations         $4,639      $2,652          74.9%
Net Income                     $3,710      $2,241          65.5%
EPS - Basic                    $0.08       $0.07           14.3%
EPS - Diluted                  $0.08       $0.07           14.3%
Diluted shares                 44,076,235  33,594,477      31.2%

For the third quarter, the company announced revenues of $13.4 million, an increase of 81.9 percent compared to the $7.4 million reported for the third quarter of 2004. The increase in revenue was attributable to growth in the company's Plant-Based Pharmaceutical (PBP) and Plant-Based Nutraceutical (PBN) products, including the contribution of the Heilongjiang Songhuajiang Pharmaceutical Co. Ltd ("HSPL") acquisition completed in November 2004 which added the Shanghuangling Lyophilize Powder Injection to the company's PBP product line. Excluding the $4.3 million contribution from HSPL, organic revenues grew 23.8 percent for the third quarter of 2005 compared to the third quarter of 2004.

For the third quarter, PBP products comprised $8.6 million, or 64.3 percent of total sales, while PBN products comprised $4.8 million, or 35.7 percent of total sales. During the third quarter of 2005, the sales of PBP products increased approximately $5.5 million, or 173.9 percent compared to the same period in 2004, driven by the addition of the Shanghuangling Lyophilize Powder Injection to the company's PBP product line and growth in the company's Cease Enuresis Soft Gel sales, one of the few PBP approved by the Chinese government for the treatment of bedwetting and nighttime urination. Shanghuangling Lyophilize Powder Injection accounted for 49.6 percent of PBP revenue and the Cease Enuresis Soft Gel products contributed $3.0 million, representing 35.2 percent of total PBP revenues. Shanghuangling Lyophilize Powder Injection did not contribute to revenues during the third quarter 2004. Cease Enuresis Soft Gel products increased 61.2 percent for the third quarter of 2005 compared to the third quarter of 2004.

PBN sales increased by $558,061 or 13.2 percent compared to last year as the company continued to improve its marketing efforts geared toward educating consumers on the benefits of using soy-based peptide products. The company's largest product as a percentage of revenue for its PBN segment was the Peptide 1*100, which represented $3.1 million, or 65.5 percent, of revenues for this line.

Cost of goods sold was $4.9 million, an increase of 101.6 percent compared to the $2.4 million reported for the same period a year ago, resulting in gross margins of 63.4 percent for the third quarter of 2005 compared to gross margins of 67.0 percent for the third quarter last year. The company's gross margins were impacted by higher costs associated with manufacturing the HSPL product, which was not factored into the company's third quarter 2004 results.

Selling and marketing expenses increased 67.2 percent to $850,167, advertising expenses increased 3.8 percent to $756,541 and general and administrative expenses increased 117.3 percent to $1.9 million, in each case compared to the third quarter of 2004. Collectively, total operating expenses were $3.9 million, an increase of 68.9 percent compared to the $2.3 million reported for the same period last year as the company increased expenses related to the HSPL acquisition and other initiatives to support operational growth. Operating expenses as a percentage of sales were 28.8 percent during the third quarter of 2005 compared to 30.9 percent for the third quarter of 2004.

Operating income increased to $4.6 million, or 74.9 percent, from $2.7 million for the third quarter of 2004. Operating margin was 34.6 percent compared to 36.0 percent during the third quarter of 2004, with the decrease due to the integration of HSPL operations as mentioned previously.

Net income was $3.7 million, as compared to net income of $2.2 million for the third quarter last year, an increase of 65.5 percent. Basic and diluted earnings per share for the third quarter of 2005 were $0.08 per share, as compared to $0.07 per share for the third quarter of 2004. The company utilized 44.1 million weighted diluted shares in this calculation, representing a 31.2 percent increase from the 33.6 million weighted diluted shares for the third quarter of 2004.

"This was an exciting quarter for American Oriental Bioengineering as we achieved a listing on the American Stock Exchange, made significant improvements in our balance sheet, continued to integrate the acquired assets of HSPL while continuing our strong financial performance," commented Tony Liu, chairman and CEO of American Oriental Bioengineering. "During the third quarter, we continued to deliver solid revenue and earnings growth while further positioning AOBO to gain market share by expanding our geographic footprint and distribution channels. We made a strategic decision to expand the marketing of our PBN products and subsequently opened our first retail location in Hong Kong called 'Life Peptide.' This location will act as a showpiece to promote and educate consumers on the benefits of soy-based peptide products as a means to address improved overall health and well-being. Additionally, our soy-based peptide products will be offered in over 100 independent retail locations in the region. As we continue to penetrate the large and growing Chinese market with our superior products coupled with favorable macro demographic and product trends, we believe AOBO is well positioned for ongoing growth and profitability."

For the nine-month period ended Sept. 30, 2005, the company announced revenues of $35.0 million, an increase of 81.3 percent compared to the $19.3 million reported for the first nine months of 2004. The company's PBP products contributed $22.1 million in revenues, up 112 percent compared to the first nine months of 2004. For the nine months ended Sept. 30, 2005, $10.9 million of the revenue growth was contributed by SLPI, or 49.6 percent of total PBP revenues, and Cease-Enuresis Soft Gel products contributed $7.3 million, or 33.2 percent, of total PBP revenue, representing a 53.4 percent growth compared to the same nine-month period in 2004.

For the nine-month period ended Sept. 30, 2005, cost of goods sold was $12.7 million, an increase of 108.7 percent compared to the $6.1 million from the same period a year ago, resulting in gross margin of 63.6 percent for the first nine months of 2005 compared to gross margin of 68.4 percent for the same period last year, with gross margin decreasing due to the inclusion of HSPL products. Total operating expenses were $10.1 million, an increase of 42.5 percent compared to the $7.1 million reported for the same period last year. Operating expenses as a percentage of sales were 28.9 percent compared to 36.8 percent for the same period in 2004. Operating income was $12.1 million, an increase of 99.1 percent compared to $6.1 million reported in the same period. Operating margins were 34.7 percent, compared to 31.6 percent for the same period last year, as the company benefited from a faster rate of growth in sales compared to expenses. Net income was $9.2 million compared to net income of $5.0 million during the comparable period for 2004, an increase of 84.6 percent. Basic and diluted earnings per share were $0.22 per share compared to $0.15 per share for the nine-month period last year. The company utilized 41.3 million weighted diluted shares in the calculation compared to 33.1 million weighted diluted shares in the same period last year.

Balance Sheet

The company completed the quarter with $19.1 million in cash and cash equivalents, inclusive of the $11.0 million received from its class "A" and "B" warrants exercises by the end of September 2005. This compares to $11.4 million in cash as of Dec. 31, 2004. The company reported $3.7 million in bank loans as of Sept. 30, 2005, as compared to $5.1 million as of Dec. 31, 2004. During the first nine months of 2005 the company generated $3.9 million in positive cash flows from operations.

"Today, with over 100 products in our portfolio and over 10,000 points of sale, we believe we are a far stronger and more diverse company than just one year ago," Liu continued. "With a stronger cash position and a more defined and effective distribution channel, we are able to target multiple growth strategies in addition to having the resources available to capitalize on complementary acquisition opportunities within the Chinese marketplace. We are initiating plans to penetrate new markets and drive organic growth in terms of both revenue and earnings, while positioning ourselves as a recognizable entity in China for plant-based herbal remedies.

Teleconference Information

The company's management will host a third quarter earnings conference call today at 4:30 p.m. Eastern time today. Interested participants should call 888-896-0863 when calling within the United States or 973-582-2741 when calling internationally. There will be a playback available until Nov. 21, 2005. To listen to the playback, please call 877-519-4471 when calling within the United States or 973-341-3080 when calling internationally. Please use passcode 6684462 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed at American Oriental Bioengineering's Web site at http://www.bioaobo.com. The webcast may also be accessed at ViaVid's Web site at http://www.viavid.net. The webcast can be accessed until Dec. 14, 2005, on either site.

About American Oriental Bioengineering Inc.

American Oriental Bioengineering Inc. (AOB) uses proprietary processes for producing soybean protein peptide more efficiently than traditional extracting techniques. These techniques are used to manufacture and formulate supplemental and medicinal products. Soybean peptides are used widely in general food, health food products and medicines, among other applications. AOB also produces Cease-Enuresis Soft Gel, one of the few Chinese FDA-approved first grade, prescription medicines that is specially formulated to help alleviate bed-wetting and incontinence. The company is a leading producer of products in both the pharmaceuticals and nutraceuticals areas in China. For more information, visit http://www.bioaobo.com.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

        American Oriental Bioegineering Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets
                                ASSETS
                                ------
                                                SEPT. 30,    DEC. 31,
                                                  2005        2004
                                               ----------- -----------
                                               (UNAUDITED)
CURRENT ASSETS
Cash and cash equivalents                     $19,074,261 $11,404,149
Accounts receivable, net of allowance for
doubtful accounts of $307,106 and $0,
respectively                                   7,691,130   4,736,901
Inventories, net of provision of $606,927
and $0, respectively                          10,506,880   5,673,059
Advances to suppliers                             520,884     518,589
Other receivables                                  14,210     156,062
Prepaid expenses                                  138,400           -
Due from employees                                410,808     182,099
Deferred consulting expenses                      962,328   1,686,652
                                               ----------- -----------
      Total Current Assets                     39,318,901  24,357,511

PLANT AND EQUIPMENT, NET                        7,766,247   8,068,776
DEFERRED TAX ASSETS                               581,227     159,958
LICENSE, NET                                      486,592     542,168
CONSTRUCTION IN PROGRESS                        6,481,073   1,836,714
LAND USE RIGHTS, NET                            7,950,592   7,871,497
                                               ----------- -----------
    TOTAL ASSETS                              $62,584,632 $42,836,624
    ------------                               =========== ===========

                 LIABILITIES AND SHAREHOLDERS' EQUITY
                 ------------------------------------
CURRENT LIABILITIES
Accounts payable                              $ 1,407,773     755,266
Short-term bank loans                           3,707,365   5,060,241
Common stock to be issued                       2,780,328           -
Taxes payable                                   1,231,258   1,096,545
Other payables and accrued expenses             1,434,031   1,064,411
Due to officers                                         -   1,404,522
Customer deposits                                 302,054     160,504
Current portion of obligations under capital
leases                                            13,577      12,952
                                               ----------- -----------
Total current liabilities                      10,876,386   9,554,441

LONG-TERM PORTION OF OBLIGATIONS UNDER CAPITAL
LEASES                                            23,528      34,548
DEFERRED TAX LIABILITIES                          210,885     107,201
                                               ----------- -----------
TOTAL LIABILITIES                              11,110,799   9,696,190
                                               ----------- -----------

SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value; 2,000,000
shares authorized; 1,000,000 shares issued
and outstanding at Sept. 30, 2005, and
Dec. 31, 2004, respectively                        1,000       1,000
Common stock, $0.001 par value; 60,000,000
shares authorized; 48,264,739 and 39,746,827
shares issued and outstanding, respectively       48,265      39,747
Additional paid-in capital                     25,122,455  16,900,303
Accumulated other comprehensive income            854,058           -
Retained earnings (the restricted portion of
retained earnings is $1,294,689 and
$1,294,689 at Sept. 30, 2005, and Dec. 31,
2004, respectively)                           25,448,055  16,199,384
                                               ----------- -----------
Total Shareholders' Equity                     51,473,833  33,140,434
                                               ----------- -----------
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $62,584,632 $42,836,624
   ------------------------------------------  =========== ===========


        AMERICAN ORIENTAL BIOENGINEERING INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                             (UNAUDITED)

                        Three Months Ended       Nine Months Ended
                             Sept. 30,               Sept. 30,
                         2005        2004        2005         2004
                      ----------- ----------- ------------ -----------

REVENUES             $13,407,237 $ 7,372,555 $ 34,962,489 $19,283,134
COST OF GOODS SOLD    (4,911,990) (2,436,157) (12,728,309) (6,098,743)
                      ----------- ----------- ------------ -----------
GROSS PROFIT           8,495,247   4,936,398   22,234,180  13,184,391

Selling and marketing   (850,167)   (508,477)  (2,055,988) (1,537,631)
Advertising             (756,541)   (728,802)  (2,160,625) (2,336,006)
General and
administrative       (1,939,514)   (892,701)  (4,968,708) (2,757,745)
Merger cost                    -      (8,333)           -     (24,999)
Depreciation and
amortization           (310,267)   (145,619)    (919,195)   (436,674)
                      ----------- ----------- ------------ -----------
INCOME FROM
OPERATIONS            4,638,758   2,652,466   12,129,664   6,091,336

INTEREST INCOME
(EXPENSE), NET          197,150     (23,694)      40,074     (71,485)

OTHER INCOME, NET            577      56,634       (6,700)     83,376

                      ----------- ----------- ------------ -----------
INCOME BEFORE INCOME
TAXES                 4,836,485   2,685,406   12,163,038   6,103,227
Income Taxes          (1,126,721)   (444,361)  (2,914,367) (1,094,394)
                      ----------- ----------- ------------ -----------

NET INCOME             3,709,764   2,241,045    9,248,671   5,008,833

Foreign currency
translation gain        854,058           -      854,058           -

                      ----------- ----------- ------------ -----------
COMPREHENSIVE INCOME $ 4,563,822 $ 2,241,045 $ 10,102,729 $ 5,008,833
--------------------  =========== =========== ============ ===========

NET INCOME PER SHARE
          BASIC      $      0.08 $      0.07 $       0.22 $      0.15
          DILUTED    $      0.08 $      0.07 $       0.22 $      0.15

WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING
         BASIC        44,000,009  33,570,957   41,239,172  33,073,499
         DILUTED      44,076,235  33,594,477   41,267,329  33,097,224

[valueseeker]

I guess I was lucky checking my computer at the right time. Got back in at $5.43, after selling last Thurs. at pre-market $7.45.

I am long term holder of AOB, but did't like the steep run-up prior to the earnings so I sold. I held my other holding HOM through earning today with a 9% gain. HOM didn't have as steep run-up as AOB prior to earning and it turned to to be the right decisions.


-Valueseeker

[Se7en]

Can someone give some TA after today's 'hurricane'?!

[stopthemadness]

Can someone give some TA after today's 'hurricane'?!

i took some profits but decided to hold some over earnings... ok, bad move.

any suggestions on what to do with the remainder? I can just bail now, but it cuts into my initial profits so....

[Se7en]

I sold this morning at 6.26$ ...

[tokyopua]

I sold yesterday at 6.15 in order to spend some time to better understand the CC and results.  I didnt finish so was out still this morning and was wishing I held for awhile there, but now its down again, so again I am probably lucky. 

I am going to cointinue to sit this out for awhile, maybe play the next end of quarter if the stock languishes in the meantime, or buy on a major pullback if it happens before end of quarter.

[stopthemadness]

well the profit taking seems to have levelled off. Looks like we might get out of this without getting scathed too much.

[Stocky2000]

AOB:
Revenues Increase 81.9% !
Net Income Increases 65.5% !

Momentum players give chance to buy lower

Bought more today  (averaged to 5.85)

1. Fast stockastics is low...when bought at this level was always good see past
2. RSI should hold 50...
3. uptrend intact

[vic666]

got in at $5.85 today...

kinda waited for the "negative" news (heck, I don't see anything negative with it!) to sink in, and also the profit takers and the bottom fishers to manipulte the stocks for a while...looks like the mid-to-upper 5's is where the stability is maximum today.

Looking for a slow but steady rise back to the 7's over the next few days, especially once the marke recognizes it's "miscalcualtion" on the understanding of yesterday's tremendous results.

good luck all. 

[stopthemadness]

$7 levels in the next few days? that would be great but seems a little optimistic. it may take to the end of the month since we've also got a holiday in there.