I did a blog on American Oriential Bioengineering back in April of this year.  I have been familiar with AOB for quite a few years….trading in and out of it profitably several times.  Back on April 27th of 2009, I did a blog saying that I was bullish on the st0ck.  It was a good call….AOB was not a one day rocket, but a position trade that delivered solid gains for patient traders.  Here is a link to my April 27th blog

I think that it might be time to look at AOB again.  As strange as this sounds, I “trust” the company.  Their financial condition hasn’t changed much since I blogged about them previously.  It is a profitable company that has strong financials (cash-in-bank, good ratios, etc…).  The only fly in their ointment continues to be their debt (over 115MM last Q).  However, they have strong cash flow and no liquidity concerns.

Let’s take a look at their chart:

• Stock is oversold
• MACD is neutral and below zero line.  If it turns up and then crosses the zero line, it becomes bullish in a hurry
• It looks like sellers and profit takers are out (AOB had a high short sellers ratio in September)
• Volatile Stock….a trader’s best friend

AOB may not be a double or a triple, but I think that AOB is a stock that my members should take a look at. The chart is favorable, the rumors of a impending financing is positive, the company makes money and has lots of money in the bank….all good things.

Good luck and good trading

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