CBP - the 10Q reads pretty good, though isn't without some concerns as well as some bullishness. CBP seems like a prime candidate for a go-private offer, when considering the cash balance and book value. But i understand that there are complications when dealing w/ reverse mergers (i think CBP is one, if i recall correctly).
From the bullish camp, here's one tidbit: "The PRC government is injecting funds into healthcare insurance system to reimburse full or part of the medical expenses consumed by Chinese citizen. We expect the Healthcare Reform, when fully in place, will greatly improve the affordability of healthcare cost of Chinese people and therefore further increase the demand for our products. We have established Medical Reform Sales Department as a dedicated resource focused on capturing this tremendous growth opportunity"
Another: "Since the selling price of all products increased in January 2011, we have experienced sales volume decrease from most of products in the year of 2011. After longer than expected stable period and the effort of propagation through advertisement and promotion, and the most important, the high quality of our products, we see our sales volume start to increase in the second quarter of 2012. This is a good sign of our future organic growth"
Another: "We expect the demand for our products will continue increase as we continue to garner greater market acceptance, in particular the benefits of our Siberian Ginseng (Acanthopanax) Series in treating depression and nerve-regulation. We believe that we will have a continuous and stable sales increase in these products for fiscal year 2012. In addition, we anticipate that we will be successful in becoming one of the PRC’s essential medicine suppliers as the PRC government moves forward with its Health Reforms in 2012"
Of some concern: "Inventory amounts increased approximately $7.28 million from approximately $7.42 million on October 31, 2011 to approximately $14.69 million on April 30, 2012. This increase was primarily attributable to an increase of $3.82 million in raw materials from approximately $0.95 million on October 31, 2011 to $4.77 million on April 30, 2012, an increase of $1.74 million in packaging materials from $1.90 million on October 31, 2011 to $3.63 million on April 30, 2012 and an increase of $1.96 million in work-in-progress from $3.21 million on October 31, 2011 to $5.17 million on April 30, 2012"
Of some concern: "As of April 30, 2012, we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act”). Accordingly, based upon that evaluation, the chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were not effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified by the Securities and Exchange Commission’s rules and regulations."
But in the subsequent paragraph in the 10Q, they talk about how they're improving such controls.