Earlier this year the stock traded as high as $4.75, but that was before Biostar had even given 2010 guidance of doubling net income, so at current around $4 the recent developments with stock are clearly being overlooked.
Other pharma stocks where I did some analysis but chose to not invest include Lotus Pharmaceutical (LTUS.OB), TongjiTang Chinese Medicines (TCM), American Oriental Bioengineering (AOB)and Tianyin Pharmaceutical (TPI - Get Report). For Lotus, the numbers look cheap if doing a basic stock screen, but a further read into all of their filings and disclosure makes it clear that this is one to avoid. AOB and Tianyin both merit a further look, but there I currently see no compelling valuation motivation to buy the stocks. I will continue to watch those two further.
Disclosure: The author is long shares of BSPM
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