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| Discussions for American Oriental Bioengineering, Inc. | View all discussions |
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| This Stock | ||
| All 6 messages in discussion - | ||
From: justj...@gmail.com
Date: Fri, 3 Apr 2009 10:11:22 -0700 (PDT)
Local: Fri, Apr 3 2009 1:11 pm
Subject: This Stock
To this day I'll never understand what is going on with this stock.
I've never seen anything more ridiculous. All through almost all of 2008 all I hear is great recommendations, excellent fundamentals and rave reviews about this stock. It baffled me that it was not higher. Its growth increased, even through the recession; in fact, it is one of the only companies to actually make profit during these times. Then, the stock actually starts to climb, as it should, given its fundamentals and continual growth and ratings. Not in a million years did I believe it was a superficial climb. It gets to seven and beyond, which made total sense; shortly after, using the purchasing of a building (a solid investment in its future) as an inane, insignificant excuse, the stock immediately dives and continues to do so, setting a new 52 week low. Now it will not get away from 4. Just under, just over. It recently reported great earnings. 4. It reports new research on a drug for the U.S.-- 4. It gets another good review from an analyst. 4. This is the most asinine, nonsensical, ludicrous stock I have ever seen in my entire life. Its price doesn't make any sense, and no one has any idea as to its story. Does it not have to inevitably rise, eventually, due to its growth and fundamentals?? Am I the only one baffled by this stock, or what? You must Sign in before you can post messages.
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From: tacticalbuddh...@gmail.com
Date: Fri, 3 Apr 2009 10:19:10 -0700 (PDT)
Local: Fri, Apr 3 2009 1:19 pm
Subject: Re: This Stock
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From: jason.alvestef...@gmail.com
Date: Fri, 3 Apr 2009 12:24:39 -0700 (PDT)
Local: Fri, Apr 3 2009 3:24 pm
Subject: Re: This Stock
I believe a large fund is unwinding their position. I've noticed the
institutional ownership percentage drop recently. Since this is a small-cap stock, large selling can drive down the stock price significantly. I believe some funds are worried about Chinese regulation and management's odd behavior. Most of this is risk is reflected in the stock price already. On Apr 3, 1:19 pm, tacticalbuddh...@gmail.com wrote:
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From: johnny.ho...@gmail.com
Date: Fri, 3 Apr 2009 15:57:48 -0700 (PDT)
Local: Fri, Apr 3 2009 6:57 pm
Subject: Re: This Stock
i just dumped my shares today that i bought at 5.51 back in
january...took about a 1300 dollar loss...and bought some MGM...i figure i could dick around and not make any money in the next year if i held AOB, or get on MGM, which is up 50 cents after hours On Apr 3, 3:24 pm, jason.alvestef...@gmail.com wrote:
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From: kyle.har...@gmail.com
Date: Tue, 7 Apr 2009 14:25:54 -0700 (PDT)
Local: Tues, Apr 7 2009 5:25 pm
Subject: Re: This Stock
AOB took on a convertible note for about $125 million to finance the
purchase of the building and other assets. Granted not all of the note was used, and there is still some cash sitting on the balance sheet, which is a good thing in these times. That being said, AOB took on a convertible note which is diluting the equity ownership as it pays interest on the note. I dont know the fine details of this note, but I can tell you a reason why the stock has done poorly is because they took on a convertible note. This is not the first time a stock has taken a seemingly inexplicable nose dive despite positive fundamentals as a result of a convertible instrument. Be careful with the dilution, and keep picking up shares as it goes lower. The only way a convertible note is beneficial to the company is if the equity is worth more than when the note was assumed, which is not currently the case and therefore dilution is magnified. I love this stock, but until they pay off the convertible note, its hard for me to like it. I sold all my shares back on the day they took on this note. I think I will get back in at some point soon, because it is a strong fundamental company, but they really need to get rid of this death spiral that is the convertible note. On Apr 3, 6:57 pm, johnny.ho...@gmail.com wrote:
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From: jason.alvestef...@gmail.com
Date: Tue, 7 Apr 2009 18:18:03 -0700 (PDT)
Local: Tues, Apr 7 2009 9:18 pm
Subject: Re: This Stock
What upsets me is that I remember reading from the 10-K that the CEO
holds preferred shares that cannot be diluted. Therefore, he probably has no incentive not to dilute shares. Furthermore, management can award themselves stop options whenever they please. That being said, I think this company is significantly undervalued and
On Apr 7, 5:25 pm, kyle.har...@gmail.com wrote:
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