pumping AOB

I came across an interesting article that talks about why AOB(5.63 -0.07 -1.23%, ) is a good growth stock from Forbes: Making Money On Chinese Medicine

Excerpt from the article that I found interestig:

With top line growth expected to exceed 50% in 2008, an earnings multiple of about 14 and favorable demographic trends, the stock offers great growth potential at a bargain basement price.

Products fall into two categories. Plant-based pharmaceuticals, which generated 82% of first-quarter sales, are medicinal compounds derived from the leaves and roots of plants. These products, approved by the Chinese State Food and Drug Administration, are used to treat various illnesses. They are sold over the counter and by prescription.

Plant-based nutraceuticals generated 18% of first-quarter sales. These are dietary supplements designed to prevent illness rather than treat it. PBNs are also believed to promote health and wellness. AOB sells tablets, powders and an instant coffee containing soy peptides. It also sells nutritional drinks derived from honey products, marine plants and natural herbs that are rich in amino acids and vitamins.

AOB has benefited from a general preference in China for TCMs over synthetically manufactured alternatives. Complementary acquisitions have also contributed to the company’s growth.