CBPO is certainly set up to be a big winner from any H1N1 epidemic. It may not be obvious to the layman, but it is true. One of CBPO's biggest products is intra-venous immunoglobulin...or IVIG. It's not a mainstream treatment for H1N1, but it is widely used as a prophylactic treatment for patients with compromised immune systems that have been exposed to viral diseases.
There are a LOT of people in China. That market is VERY undersupplied with IVIG. So even though the patient base might be a small percent, it's a LOT of people that will need to use a VERY LITTLE amount of product. The result will be very high utilization for CBPO and increased average selling prices for their products. They are able to redeploy this excess margin into their donor base to increase donations...trust me, they could easily double their production if they expand their donor base.
Don't believe it? Well, examine their results from last quarter. IVIG prices and volumes were well up on the back of a Hand, Foot and Mouth disease outbreak in China. H1N1 could make Hand, Foot & Mouth look like the common cold.
By the way, check out the US sponsor of this stock. It's Pinnacle....sponsor of other US major exchange listed China stocks like HOGS, CGA, CPBY, & CTFO. The stocks they sponsor make it to major markets. CBPO has not made it to a major market yet...but they qualify for a major market in all respects. Seems like it's just a matter of time before they get uplisted.
CBPO has fantastic margins, a great moat, INSANE cash flow, and a strong balance sheet. No accounts receivable issues in sight here. And it's a medical company. That type of China Stock will sport at least a 12x PE on a major exchange. CBPO earned 32 cents last quarter....and their business isn't very seasonal. This really is a $15 stock. The market just hasn't realized it yet.
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