I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke withVahan Janjigian, editor of Forbes Growth Investor, who discusses how the economic crisis affects his strategy and mentions some good international growth stocks.
Q. Vahan, although you primarily recommend US equities, your newsletter also includes a few international picks, such as American Oriental Bioengineering(NYSE: AOB) and Embraer(NYSE: ERJ). What factors made you choose these companies?
Together with its subsidiaries, the company engages in the development, manufacture, and commercialization of a range of pharmaceutical and healthcare products.
If you look at the long term chart, you will see that the stock channels between approximately $7 and $14, and has done so for a couple years. The stock is now at the bottom of the channel (last trade was $7.09), just in time for flu season.
Here is what you need to know:
P/E Ratio (TTM) of just 10.41, versus the industry's average of 24.1
Has an incredibly consistent record of increasing sales at 50
This is a very good little company. When I first came across this company it trading on the Pink Sheets and had a market cap of about 40 million dollars. They were a typical pink sheeter that had done a reverse merger and gone the typical pipe financing route. When I first met them I was very dubious of their credibility but I stayed with it and worked through a painful series of one on one meetings in broken English. I made a small investment because something told me these guys were for real.
Fast forward a few years, today they are listed on the NYSE and I have grown to tr...
In his The Forbes Growth Investor, the advisor explains, "This market has enjoyed significant growth over the past several years due to several favorable trends." Here's his review.
"American Oriental Bioengineering is a pharmaceutical company that specializes in manufacturing and marketing plant-based traditional Chinese medicines (TCM) in China.
"Plant-based pharmaceuticals (PBP),which generated 82% of Q1 sales, are
American Oriental Bioengineering (NYSE: AOB) manufactures a broad range of prescription pharmaceutical, over-the-counter pharmaceutical and nutraceutical products for the Chinese market, operating from 30 locations in the Peoples Republic. Offerings include treatments for the flu, upper respiratory infections, tonsillitis, incontinence, endometritis, annexitis, PMS and sinus congestion. The firm sells to some 100,000 retail stores, pharmacies, hospitals and independent distributors.
We expect the company to continue to deliver strong performance for the remainder of the year due to a relatively high growth in traditional Chinese medicine market in China.
AOB, American Oriental Bioengineering is a major player in huge Chinese market of pharmaceuticals and nutraceuticals. They make prescription and otc products herbal and traditional. Great fundamentals TTM EPS gorwth 56%, ROE 23%, qtr earnings growth 66%, 13 week price performance rank 90% for sector, and institutional ownership is 48%, 105 higher than industry sector and growing.
So fundamentals and technicals strong and institutional pumping in investment dollars makes this a strong buy.
Strong fundamentals held back by strong shorts in the recent months has given way…. the squeeze is on. The underlying fundamentals are finally supporting a break out. Outstanding recent quarterly announcement plus two acquisitions not factored into the EPS are in the midst of closing. They have completed one acquisition and have one to go adding approximately 21 million in revenue per year. The last acquisition is expected to close at the end of third quarter. AOB in past acquisitions have been able to triple the revenues of the acquired companies by pumping their products into their
Over the next few years China's medical 'awareness' will be increasing. The national government recently increased their health related spending 74%. The medical products industry is expected to grow at 50% for the next few years.
With AOB already consolodating the plant/natural medical health products, they are putting themselves into a decent position to profit off china's increased Health awareness.
Recently, AOB has been bashed by Barron's causing an instant 10% fall. I feel the bash is unwarranted and AOB's fundamentals remain very strong.
-Low debt
-Good momentum
-Hot market, revenue increased 98% in first 9 months of 06
-Regional offices throughout China
-Combines biotechnology and traditional Chinese medicine
-Recently added to the NYSE
P/E is a little high, but I think the stock still has enough momentum for the next 6 months.
As a matter of fact, earnings increased 74% yr over yr. cash $80.92mil,no debt,low p/e.Eventually these facts will gain traction in the stock market, it is only a matter of time
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About American Oriental Bioengineering Inc
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