China Biologic Products (CBPO) Showing Signs Of Perilous Reversal Today

Trade-Ideas LLC identified China Biologic Products ( CBPO) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified China Biologic Products as such a stock due to the following factors:

  • CBPO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.8 million.
  • CBPO has traded 118,908 shares today.
  • CBPO is down 3% today.
  • CBPO was up 6.2% yesterday.

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More details on CBPO:

China Biologic Products, Inc. engages in the research, development, manufacture, and sale of human plasma-based biopharmaceutical products to hospitals and inoculation centers in the People's Republic of China. CBPO has a PE ratio of 29. Currently there are 3 analysts that rate China Biologic Products a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for China Biologic Products has been 279,100 shares per day over the past 30 days. China Biologic has a market cap of $2.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.49 and a short float of 0.9% with 0.17 days to cover. Shares are up 40.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates China Biologic Products as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 31.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CBPO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.16, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 25.31% and other important driving factors, this stock has surged by 114.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CBPO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CHINA BIOLOGIC PRODUCTS INC has improved earnings per share by 25.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHINA BIOLOGIC PRODUCTS INC increased its bottom line by earning $2.72 versus $1.95 in the prior year. This year, the market expects an improvement in earnings ($3.23 versus $2.72).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 35.5% when compared to the same quarter one year prior, rising from $19.73 million to $26.72 million.

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