Steve, I agree that AOBO looks cheap at 1.35. They could be on track to earn 0.20 fully taxed and diluted for FY04. Trading at <7x this years potential eps.
Next FY results will be impacted by dilutive offering recently completed, but revs and net income growth should more than offset that extra dilution. My SWAG is for fd eps to grow to 0.24 in FY05......so stock could trade as high as 3.00 - 4.00 IF they can execute on acquisitions, and fear of Chinese stocks dies down a bit. Wouldn't hurt if they could get a better listing either.
Look at who participated in the last round of financing:
1. Kellogg Capital 125k shares (largest AMEX specialist)
2. Barron Partners 1.25MM shares (have participated in other good looking deals like PDGE, seems to be a decent hedge fund)
A lot of these folks got shares at 1.00, so they may be selling some to bank some quick gains, and I suspect that there are some insiders selling (several Form 144s were filed in the past month; looks like nearly 730k were availabe for sale since end of September).
High risk, potentially high reward....