gillet01

American Oriental Bioengineering Keeps Growing Despite Bad Moves

They bought the building in Beijing for two reasons, niether could be stated in a press release. First, it alleviated "concerns" the central chinese government had about how "chinese" this company was. This is directly related to the subsequent announcement that AOB will be the beneficiary of a number of Gov't incentive programs, including tax breaks.
Second, this will be their new de facto headquarters, they will not officially make it the headquarters since they would lose a large tax benefit were they to move, hence "conference center".




On Jan 14 07:56 AM JSbalaban wrote:

> I wouldn't touch AOB due to their poor business decisions. The only
> thing that saves them is China's still relatively robust economy.
> AOB may have 82M in profit in Q4, but shareholders wont see much
> of that due to AOB's continued diluitive deals. Want a good pharma
> that grows as organically as possible and is a real cash cow for
> their size? Take a look at CSKI. For me, that's the one to own CSKI
> will double before AOB gives you 50%.
>
> JBB