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). 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
The author can be reached at firstname.lastname@example.org
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