Motley Fool Hidden Gems
advisor Bill Mann sure knows how to pick 'em. American Oriental Bioengineering
The Chinese plant-based pharmaceutical maker saw revenue jump more than 50% year over year. Sales of over-the-counter products rose 138%, and pharmaceutical sales increased 72% thanks to a pair of acquisitions, CCXA and Boke, last September and October.
Most of the revenue trickled through to the bottom line, as net income rose 46% year over year. Earnings per share, however, lagged -- up just 20% year over year. The company had many more shares outstanding this quarter, because of a secondary stock offering last June. In retrospect, the offering might look ill-timed, since the stock is selling for almost 40% more than American Oriental Bioengineering received in the secondary offering. However, the cash allowed it to make the purchases that drove up the stock price. Sometimes a smaller piece of a bigger pie is preferable -- especially if it's one of those magical pies that grows over time.
The company still has almost $160 million in cash and equivalents in the bank, and it hinted strongly that it plans to make more acquisitions. If AOB decides to move stateside with an acquisition, MartekBiosciences
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