American Oriental Bioengineering Inc. (AOBI)

[stanu78]

Lord, that is my suggestion for management adn I think they are doing it. The only thing that they didn't do (which is also part of my suggestion) is to not issue private placement like crazy. that created massive dilution as well as sending the message that they are not confident that they can raise money at that prices ($1, $1.6, $4.8 and $8.50) in the future.

Well I can udnerstand the $1 and $1.6 dilution as they were just small at that time and want to buy HSPL and HQPL. but once they get bigger they need ot be patient and grow with profit from operation.

Unless they do have some comapny that they want to acquire but for whatever reason they didn't (either lost the bidding war or don't see a fit for AOB). but either way they need to be more certain of the acquisition before rasing millions of dollars which will crate a drag for EPS if the money is not deployed .

having said that, I'd rather have the money sitting on their bank (like it is doing now) than spent on a bad acquisition.
However, I am still expecting them to probably buy at least one company per year for the next three years. (and hope they won't need to sell any more shares). the dilution should stop here.

I've been long on AOB for a long time and I'm still holding. My 3 years target with AOB is $20. Are you long on this stock. it's a good and gowing stock. However once their growth slow down to high single digit (maybe 3-4 years from now the PE going to drop to probably 13-14 and the stock might drop a lot but I still think by that time the stock will still be around $20)

JMHO. what do you think of AOB?

Stan