American Oriental Bioengineering

American Oriental Bioengineering's stock (AOB) got whacked bad a few days ago.

That's what it looked like. Pretty ugly, huh?

It dropped from $11.50 at Monday's close to $8.50 at Tuesday's close. A $3 drop which, since there's 64 million shares, means that the company lost over $190 million in value. Like I say, ouch.

I bought into the stock at $8.69 and I'm expecting to be able to get $11.50 - $12 for it in the next 2 months.

The company is interesting. Despite the name, it's a Chinese company, and it's business is selling food supplements in China. They also sell 9 plant extract based pharmaceuticals like Gujinwan Capsules and Biyanling Tablets. But their bread and butter are the food supplements mostly based on either soybean or pancreatic extracts.

There's only two analysts following this stock but they're both optimistic. One projects a price of $12.50 for the stock this year and the other analyst is projecting $16. I'd be more than happy should AOB make it to $12.

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