AOB

[la-onda]

AOB update:

Dig into American Oriental Bioengineering
Thursday February 22, 3:42 am ET

Prashanth Cherukuri submits: American Oriental Bioengineering, Inc. (NYSE: AOB - News) engages in the development and production of plant-based pharmaceutical [PBP] products and plant-based nutraceutical [PBN] products in China. Its PBP products include cease enuresis soft gel, which is used to alleviate bed-wetting and urination disorder; double ginseng yishen grain that is used for neurosis, vegetative nerve functional disturbance, and hypo-immunity; root of red-rooted salvia tablet that improves blood circulation and blood flow to the coronary artery to relieve pain, and is used for coronary ischemia and angina pectoris caused by coronary heart disease; and urinstopper patch, which is used to avoid frequent urination, urinal incontinence, and bed wetting.

The company's PBN products include protein peptide products series, which offers soypeptide tablets, milk powder, and coffee; compound bio-functional beverage series derived from honey products, marine plants, and natural herbs; vitamate oral liquid that strengthens the immune system and regulate blood lipids; and urinstopper capsule, which is used as a health supplement for children suffering from bed wetting and for middle-aged and elderly adults suffering from urinary incontinence.

American Oriental Bioengineering sells its products directly to retail stores, pharmacies, and hospitals, and to independent distributors. The company is headquartered in Harbin, China.

The Scoop: The company declared on February 14th that it will be announcing its quarterly earnings on March 12th, 2007. Analysts are expecting $106-108 million in revenues and $28 to $29 million net for 2006. Institutions will take note and start scooping up this now big board stock. Until growth slows, this is a long term winner - even Cramer is warming up to it after relentlessly bashing it from $5. The recent selloff attributed to the Chinese Government investigation into drug companies - i.e. that AOB's drugs are grandfathered - is unfounded!

I would keep this in my watchlist and notice it closely until a week before earnings, and buy on any dips from here on. Be careful though, as this is a Chinese small-cap stock and you have to you have to be ready for some volatility.

http://biz.yahoo.com/seekingalpha/070222/27731_id.html?.v=1

[la-onda]

nice news, chart looks positive again, of course I didn´t bought 

American Oriental Bioengineering Reports Fourth Quarter and Full Year 2006 Financial Results
Monday March 12, 4:02 pm ET

- Revenue Increased 108.7% to $41.3 Million in 4Q06 and 101.3% to $110.2 Million in FY06 -
- 4Q06 Net Income Increased 161.1% to $10.9 Million, or $0.17 per Diluted Share -
- FY06 Net Income Increased 117.5% to $29.2 Million, or $0.46 per Diluted Share -
- Company Provides Financial Outlook for 1Q07 and FY07 -

NEW YORK, March 12 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, today announced financial results for the fourth quarter and fiscal year ended December 31, 2006. Revenue for the fourth quarter of 2006 increased 108.7% to $41.3 million from $19.8 million in the fourth quarter of 2005. Revenue growth reflects continued demand for the Company's leading PBP and PBN products, as well as a $12.7 million contribution from the GLP acquisition. Revenue from PBP products increased 159.2% to $31.5 million from $12.1 million in the prior year's fourth quarter, driven by increased demand for Shuanghuanglian Injection Powder, Cease Enuresis Soft Gel and UrinStopper Patch. Revenue from PBN products increased 28.4% to $9.8 million from $7.6 million from the fourth quarter of 2005, due to increased demand for the Company's Protein Peptide products. Gross profit in the fourth quarter of 2006 increased 116.0% to $27.2 million from $12.6 million in the fourth quarter of 2005. Gross margin increased 220 basis points to 65.9% from 63.7% in the prior year's period. The increase in gross profit was a result of higher sales, improved gross margins and operating efficiencies across PBP and PBN businesses. Operating expenses in the fourth quarter increased 112.6% to $13.6 million compared to $6.4 million in the prior year period. This increase was primarily due to increased marketing materials, payroll and shipping expenses commensurate with sales growth. Additionally, the Company continued to increase advertising expenditure as it invests in brand strength, particularly related to products acquired with the GLP business. Operating income for the fourth quarter increased 119.6% to $13.6 million from $6.2 million in the fourth quarter of 2005. Operating margin as a percent of sales in the fourth quarter increased 170 basis points to 33.1% compared to 31.4% in the prior year period.

Net Income for the fourth quarter of 2006 increased 161.1% to $10.9 million, or $0.17 per diluted share, compared to $4.2 million, or $0.10 per diluted share, in the prior year's period.

Fiscal 2006 Financial Results

Revenue for fiscal 2006 surpassed $100 million in sales, increasing 101.3% to $110.2 million from $54.7 million in 2005. Net Income for 2006 increased 117.5% to $29.2 million, or $0.46 per diluted share, compared to $13.4 million, or $0.31 per diluted share, in the prior year.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering commented, "We are pleased to report another strong quarterly and fiscal year performance. Revenue exceeded $41 million in the fourth quarter and exceeded $110 million for the year reflecting continued strong growth in both PBP and PBN product categories. In 2006 we focused on a number of core strategic initiatives including improving the breadth and quality of our product portfolio, penetrating new markets and rationalizing our administrative, manufacturing and distribution cost structures. We achieved success in these areas through accretive acquisitions and through a program of continuous internal efficiency improvements."

Fiscal 2007 Financial Update

For the first quarter of fiscal 2007, the company anticipates revenue to be in the range of $24 to $25 million and anticipates diluted earnings per share of approximately $0.10. This is based on a diluted share count of approximately 66.5 million shares outstanding. For the 2007 fiscal year, the Company anticipates revenue to be in the range of $143-$147 million. This guidance does not account for any potential acquisitions in 2007.

Mr. Liu concluded, "Moving into 2007, we intend to continue to market our leading brands, develop new products and line extensions, further expand our channels of distribution, identify further cost savings throughout our business and pursue acquisitions that will be complimentary to our current business. We are committed to remaining a leader and innovator in the area of women's health and believe our initiatives in 2007 will continue to enhance our performance and expand our presence in the marketplace. We are energized with our opportunities and will continue to work aggressively to maximize return for our shareholders."

[la-onda]

American Oriental Bioengineering "buy"

Thursday, March 08, 2007 10:06:05 AM ET
Brean Murray, Carret & Co

NEW YORK, March 8 (newratings.com) - Analyst Julie Chen of Brean Murray reiterates her "buy" rating on American Oriental Bioengineering (ticker: AOB). The target price is set to $16.

In a research note published this morning, the analyst mentions that the company is likely to report its 4Q06 revenues and EPS in-line with the estimates. Any mandate or regulation passed by the Chinese government that is unfavourable for the Chinese stock market is expected to have a limited impact on American Oriental Bioengineering, since the company is not listed on the Chinese stock exchange. The company would also not be impacted by any decline in the Chinese economy, Brean Murray adds.

&
Brean Murray note this morning
   
Brean reiterates buy and $16 target....top pick in their 2007 China small cap universe. Raised 2007 estimates too $148.4 million from $144.7 million. "We view any weakness in the stock as a buying opportunity. We believe the company's full year revenue guidance of $143-$147 million is conservative, based on our conversations with management after the call. We understand management included only minimal upside rom a nationwide Yi Mu Cao rollout....We are anticipating at least one acquisition in 2007.

[la-onda]

what a bargain!
I have bought AOB @ 9$

[bocasva]

Unbelievable.....$8.60  now....

[nullzero]

Shucks missed this on the short side.

[Se7en]

Why the big drop, what am I missing? 

[ScottishTrader]

I'm in @ $9 this morning too.  Not sure exactly how their earnings killed the stock so badly, but I guess it was due to a clear forecast of slowing growth into 07.  

Anyway, technically I should have taken a closer look at the chart before putting my buy in - I thought just below $9 would be support, but AOB wanted to fill the open gap and has just done so.  Today's low so far was 8.52.  The November gap opened at 8.55.  So that is where support stands.  As far as resistance, 9.00 and then 9.35, the low of the day after the november gap, looks to be significant in th short term.  I think AOB will also encounter reasonable resistance at 9.65, again from November and from the low after the China crash at the beginning of March.  I'd like too see it test that level today, but if it doesn't, I'm sure we'll see a test there in the next few days.

I'm gonna have to put my stop just below 8.50, as if we break there, it would signal to me that AOB wants to keep going down.  We've all; seen to many great stocks with great charts that get broken by this kind of event.  Despite their numbers, AOB could be one of them.

[Michael]

Why the big drop, what am I missing? 

Hmmm.... With the benefit of hindsight let me give my two cents

I love AOB as a company but as an investment I am a bit more skeptical at this level.

As David has pointed out many times Chinese companies are trading at a discount. From my point of view they should trade at a premium due to the growth in the Chinese economy but the market probably know better 

AOB's trailing PE is around 18.5, which doesn't appear to be cheap. I do not have any statistics to verify this but those Chinese stocks that are on my watch list is trading at PE levels significantly lower. (I am looking at stocks like XING, ACH, BBC etc.)

So a PE premium can only be justified if you expect earnings to grow above (Chinese) average and the valuation of AOB seems a bit rich with a forecast of Q1 07 EPS of 0.1 and a 30% top line growth for 07.

When all that is said I think AOB will be a great investment. This company has a great track record but you might be able to buy it cheaper than what is on offer today.

[oicpecnoc]

I bit at 8.63, or should I say I got bit at 8.63.     We shall see.

[ScottishTrader]

AOB made a nice recovery after the big gap down, but got banged on the head at $10.  After a few days of fairly weak choppy trade, AOB made a clear break on the downside today, taking out my 9.46 stop for a 5.8% gain on the remainder of my shares.  It closed below 9.36 support (the open after the gap down), with MACD and RSI both looking weak.  Not sure, but it looks like this could signal a move back to test the 8.50 level again.

[la-onda]

fyi:
American Oriental Bioengineering Reports First Quarter 2007 Financial Results
Monday May 7, 4:01 pm ET
- Revenues Increased 34.8% to $25.7 Million in 1Q07
- 1Q07 Net Income Increased 31.1% to $6.4 Million, or $0.10 per Diluted Share
- Company Provides Financial Outlook for 2Q07 & FY07

NEW YORK, May 7 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, today announced financial results for the first quarter of 2007.
Revenues for the first quarter of 2007 increased 34.8% to $25.7 million from $19.1 million in the first quarter of 2006. This increase reflects $6.4 million in revenue from the Company's Jinji product portfolio, as well as year over year growth in the Company's core PBP and PBN products. Revenue from PBP products increased 52.4% to $18.6 million from $12.2 million in the prior year's first quarter, driven primarily by the Jinji products series, including the Company's newly launched Yi Mu Cao product for the relief of pre-menstrual symptoms, and by the Cease Enuresis Patch. Revenue from PBN products increased 3.7% to $7.2 million from $6.9 million from the first quarter of 2006, due to increased demand for the Company's soy peptide products. Gross profit in the first quarter of 2007 increased 44.1% to $17.7 million from $12.3 million in the first quarter of 2006. Gross profit margin increased 440 basis points to a record 68.8% from 64.4% in the prior year's period. The increase in gross profit was a result of increased sales of PBP products, which carry higher margins and improved operating efficiencies across both business segments.

Operating expenses in the first quarter increased 65.8% to $9.8 million compared to $5.9 million in the prior year period. This increase was a result of additional expenses related to GLP that was not associated with the company in the prior year period, as well as increased marketing and advertising expenses related to the Company's efforts to increase market awareness of its brands and products. Operating income for the first quarter increased 24.0% to $7.9 million from $6.4 million in the first quarter of 2006. Operating profit as a percent of sales in the first quarter decreased 260 basis points to 30.8% compared to 33.4% in the prior year period.

Net Income for the first quarter of 2007 increased 31.1% to $6.4 million, or $0.10 per diluted share, compared to $4.9 million, or $0.08 per diluted share, in the prior year period.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering commented, "We are pleased to report another quarter of continued growth in our business. Our major plant-based pharmaceutical and nutraceutical categories contributed to our revenue growth in the first quarter with the biggest contribution coming from our over the counter (OTC) products. Our newly launched Jinji Yi Mu Cau product contributed to our results in the quarter and we are satisfied with the momentum of this product as we move into the second quarter. We continued to effectively manage our operating costs and sourcing efficiencies and were pleased to see stable pricing for our leading products, all of which resulted in record gross margin."

Fiscal 2007 Financial Update

For the second quarter of fiscal 2007, the Company anticipates revenue of approximately $33.0 million, a 45% increase compared to second quarter 2006 revenues of $22.8 million, with the majority of this revenue growth coming from products that serve the OTC market, primarily the Jinji product portfolio. The Company anticipates diluted earnings per share of approximately $0.14, based on a diluted share count of approximately 66.6 million shares outstanding.

For the 2007 fiscal year, the Company anticipates revenues to increase at least 32% from the prior year to at least $146.0 million. This guidance does not account for any potential acquisitions in 2007.

Mr. Liu concluded, "We continue to focus on opportunities that will further enhance the presence of our leading product brands and strengthen the total number of plant-based healthcare products in our portfolio. Consumer awareness of our brands continues to grow through our marketing efforts and the ongoing expansion of our diverse channels of distribution.

We also remain highly focused on the introduction of new products through the pursuit of complimentary acquisitions and additional product line extensions. We believe that these initiatives will better position our company for future growth and will further establish AOBO as a leading integrator and cultivator of plant-based traditional Chinese medicine products."

[bjc]

Are you holding la-onda?

I'm considering buying.  This is a beautiful setup, especially fundamentally and technically(weekly).

If they meet the revenue # of 146 mil they projected for fy 07, I imagine earnings could be a pretty beautiful thing.  I feel like AOB could consolidate for 3-6 months I guess, but a run at the high in the 14 ish area is inevitable. 

Target in the high teens by the end of 07, provided fundamentals keep up on track.

[la-onda]

AOB update:
1.
American Oriental initiation details (AOB) 9.73 +0.34 : As mentioned at 8:28, Lazard initiated AOB with a Buy and $13 tgt. Firm believes AOB has executed exceptionally well over the past three years, integrating four rapidly accretive acquisitions and delivering material topand bottom-line growth. Firm forecasts organic EPS growth of 31% in 2007 and 17% in 2008. These forecasts exclude potential upside from Xinan, which AOB intends to acquire. Firm believes AOB is poised to generate superior top- and bottom-line growth.
2.
AOB: US Bancorp Starts @ Outperform; Sets Tgt @ $14
Monday , July 09, 2007 07:58ET
Issuer: American Oriental Bioengineering Inc (NYSE: AOB)
Analyst Firm:  U.S. Bancorp Piper Jaffray
Ratings Action: INITIATE
Current Rating: Outperform
Target Price Action: INITIATE
Target Price: $14.00
3.
Chart:

[setravis]

AMERICAN ORIENTAL BIOENGR INC COM (NYSE: AOB)
Threads in Previous 3SOF Picks Board, have been merged.

All future earnings look to be increasing also, plus it is now above both the 13 and 50 day moving averages!
13-day MA has crossed over the 50-day MA

52wk Range: 5.03 - 14.19
Volume: 683,900
Avg Vol (3m): 1,677,420
Market Cap: 681.37M
P/E (ttm): 17.23
EPS (ttm): 0.53

Technicals
Last Price Quote is:
5.06%above 13-day MA
4.32%above 50-day MA
RS Rating: 15 

Fundamentals
Key Data:
Market Cap (M): $681.38 
P/E Ratio: 17.30 
PEG Ratio: 0.275926 
Next Earnings: 11/13/2007
Last Analyst Rating: Sector Outperform

I will leave you with Friday's closing while I'm in this thread.