American Oriental Bioengineering Reiterated 'Buy/4,' Target Valuation $6 By Investrend Analyst Kipley Lytel, CFA.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (Investrend Research Syndicate) American Oriental Bioengineering (AMEX AMEX See: American Stock Exchange : AOB AOB (on the agenda for a meeting) any other business ) 'Buy/4' rating and $6 target valuation reiterated in an Institutional Update by Investrend Research analyst Kipley Lytel, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. . The full report is at http://www.investrendresearch.com. In it the analyst also stated: "AOB's second quarter ending 06/30/06 (Q2FY06) demonstrated continued strength with the following milestones: organic revenue growth of 66% during the quarter; completion of an accretive acquisition Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. for GLP See gateway location protocol. on both revenue and earning, as earmarked with gross and operating margin increases of 7% and 13% respectively; and, the HQPL acquisition after Q2FY06 close. We anticipate that GLP will experience both sharp revenue and earnings growth in pace with what was experienced after HSPL HSPL High-Speed Perceptual Learning was integrated into the enterprise. For example, the HSPL transaction was a $3M revenue transaction with 39% gross margin before the acquisition and now yields over $16M with 61% gross margin. Applying this model to GLP, we note that AOB quadrupled sales of HSPL in 1.5 years with a 50% absolute increase in gross margins and clearly has similar operating aims for GLP. Further, it is notable that the operating margin for AOB was 36.0% in Q3FY04 before the acquisition, and subsequently dropped to 31.1% in Q4FY04 due to the first quarter integration of HSPL. "AOB has a unique ability to identify access and complete the due diligence on these deals and possesses the necessary expertise to leverage these opportunities with savvy operational business integration. Regarding the ongoing opportunity to derive value from the recent GLP acquisition, AOB's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Tony Liu specifically commented, "Similar to our experience with the acquisition of HSPL, and based on initial GLP results, we have identified significant operational synergies which we expect will translate into improved margins for both GLP and AOB on a combined basis. Our expectation is that GLP margins can be comparable to that of AOB by the end of 2006." An InvestorPower(TM) page has been created regarding the company at http://www.investrend.com/company/Company.asp?id=1234&sPathParam=ye s&sAlias=aob. (Due to its length, this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Investrend Research has been the leading independent equity research publishing and distribution program since 1996, with over 75 qualified professional analysts posting more than 1,000 reports to date. Anyone may enroll a company. Enrollment fees for the Institutional research platform are $36,890 per annum, which have been paid by the company. Analysts are paid in advance for their initial reports by Investrend Research to limit or eliminate pecuniary interests, and no one associated with the program may own or trade in the equities of companies under coverage. The company's research has also been enrolled in the investor-monitoring program by the Shareholders Research Alliance (http://www.shareholdersresearch.com), to eliminate conflicts and bias, and Investrend subscribes to the "Standards of Practice for Research Providers" at http://www.firstresearchconsortium.com. Anyone interested in receiving alerts regarding American Oriental should e-mail contact@investrend.com with "AOB" in the subject line. |
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