This is A TheTechnicalTrader.net Freebie Stock pick. To Recieve all of our stock pick alerts sign up for BLACK SERVICE TODAY!!
AOB has been in a Steady downtrend since it highs its recent highs around $14/share in late 07′ as the market has been unsteady most of 2008. Although it appears that after this negative momentum China looks to be making a rebound as a whole and along with it the undervalued growth stocks such as AOB. After hitting lows near 7 or a 50% drop from its highs in late 07′ AOB made a strong rebound while forming a bullish ascending triangle that broke out Thursday on increased volume suggesting continued bullish momentum from here.
Fundamentally AOB looks cheap among its peers in the biotechnology industry currently trading at a low P/E of just 14x earnings compared to the industry average 22x. Looking forward analysts are expecting continued strong growth for AOB of 1.02eps in 2009. Given these estimates we could give AOB an estimated fair value within its industry of 22.47/share found by multiplying forward earnings of 1.02 x the biotech average trading multiple of 22.03. Given that AOB’s fair value within its industry is 151% above its current share price of 8.95 this is a very appealing investment. I took Thursdays breakout as an opportunity to go long AOB.
