Promising Chinese Medical Stock

| About: China Biologic (CBPO)

By Paul Goodwin

When markets are dealing out losses left and right, as they are now, it’s a good idea to pull in your horns and keep lots of cash in your account. But that doesn’t mean you can just put your feet up and enjoy a refreshing beverage.

The construction of a Watch List of likely stocks is, itself, a dividend-paying investment.

My candidate for further observation is a small (market cap of $328 million), thinly traded (130,000 shares per day, on average) Chinese biopharmaceutical company called China Biologic Products (NASDAQ:CBPO). The stock uplisted to the Nasdaq exchange just last November, and it has been performing well despite a challenging market environment.

The company’s lead product is human albumin, a blood protein that accounted for half of 2009 revenues, and various forms of immunoglobulin. Albumin is vital during medical emergencies and immunoglobulin can prevent and treat many diseases.

The company’s 2009 sales were up 155% over 2008, and Q1 results showed a 27% gain in earnings on a 28% jump in revenues, with a 27.1% after-tax profit margin. Expansion is coming via both M&A activity and construction of new plasma collection stations.

This is a great stock for your watch list, and when the market turns up again it may provide your portfolio with a real shot in the arm.

Disclosure: No positions

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Tagged: , , , Biotechnology, China
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