Tiens Biotech Group (NYSE AMEX:TBV)

TBV reported improved fourth quarter and year end 2008 financial results. For the quarter EPS rose 40% to $0.07.  For the year EPS rose 56% to $0.39 ($0.28 tax adjusted).  The company did not present a fourth quarter financial table.  However, readers can view the GeoManaged® financial table for a break out.

The GeoTeam® was hoping for a better fourth quarter coming off on the heels of a strong third quarter showing, when the company posted EPS of $0.20 .  Recall, that there were circumstances in the third quarter that helped boost results:

 "However the company also said that sales are benefiting from some larger than normal order patterns."

At the time of the third quarter release the Company did not specify how much of the $0.20 came from the unusual order patterns.  It now seems that a good chunk came from the order patterns, as the company's fourth quarter EPS dropped sequentially and is in line with the quarterly EPS range of the last three years.

Nevertheless, the company has shown glimpses of growth in 2008 and has a low tax adjusted P/E of 7 .  Also, certain export restrictions imposed in 2007 by the Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) have now ended, which may be able to give a boost to revenues.  The GeoTeam® will continue to track TBV with the hope that the company can break out of its recent EPS range and deliver consistent growth. 

The GeoTeam® is still attempting to interview TBV.

Third quarter report showed impressive sales and earnings gains. Stock has been hitting 3 and 6 months highs. Is very close to hitting a 52 week high. Looks like the quarter may have been a break out quarter as some government regulations have been lifted that had been impeding growth in past quarters. However the company also said that sales are benefiting from some larger than normal order patterns. Need to interview to get a better read on the regulatory landscape as well as order patterns. . The company is paying little taxes and has 70 Million shares outstanding which is generally more than we like to see for a company of this size. 

After adjusting for a standard tax rate we get trailing EPS of $.27. The company grew EPS over 100% for the quarter and is selling at a tax adjusted P/E of 8 . May take a small position.