China Biologic Products (CBPO) Highlighted as Today's Perilous Reversal Stock

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 $34.5 million.
  • CBPO has traded 53,165 shares today.
  • CBPO is down 4.5% today.
  • CBPO was up 5.2% 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 4. 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 216,700 shares per day over the past 30 days. China Biologic has a market cap of $3.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.24 and a short float of 1.3% with 1.50 days to cover. Shares are down 6.8% 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • CBPO's revenue growth has slightly outpaced the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 3.26, which clearly demonstrates the ability to cover short-term cash needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 87.58% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 7.9% 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 ($3.42 versus $2.72).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Biotechnology industry average. The net income increased by 14.0% when compared to the same quarter one year prior, going from $20.06 million to $22.88 million.

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