China Biologic Products (NASDAQ:CBPO)

Recall that CBPO was added to Geo Bargain list on April 27, 2009. ($4.15).

Earlier today we removed CBPO from the GeoBargain list due to an opinionated blog insinuating that members of the management team have been involved in fraudulent activities.  The author of the blog is short the stock, so it’s clearly a biased opinion.

The allegations are not new, but the stock reacted as if they were.  Funny that there were no pot shots at the financials. We still like the company and will keep the stock on the GeoBargain on the Radar List until we receive clarification on this matter.  Until the resolution, investing in CBPO is not worth the risk as we have plenty of non controversial stocks to choose from, especially during this market pull back.

China Bio Products reported third quarter results.

Investors may not initially view this quarter enthusiastically as GAAP EPS appear weak. But after adding back one time charges to net income CBPO reported a much more favorable non-GAAP EPS comparison, which is what we will choose to focus on.

^a Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items contained in the company's filings. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

China Bio Products reported 2009 second quarter financial results well above the GeoTeam's internal expectations. 

• Revenues increased 178.2% year-over-year to a record $33.2 million
• Non-GAAP EPS increased 151.5% to $0.38 per diluted share.
• Non-GAAP EPS increased 90% from the 2009 first quarter.

The GeoTeam® participated on China Bio Products 2009 second quarter conference call.  Overall the call was bullish.  CBPO showed impressive internal growth even if the contribution from a recent acquisition are omitted.  On the call the company maintained guidance.

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