BSPM is one of those stocks that has investors confused. It is a classic case where credibility has been lost for the following reasons.

1. Rumors surrounding issues of non-compliance with regulatory bodies. see more on this at this link: geoinvesting.com/compa...

2, Company has not been overly clear with regards to its needs to raise capital.

3. The company has done a poor job detailing its financials in its press releases. It actually had to reissue its fourth quarter release.

4. First quarter 2010 was below what the street had expected. There was a huge spike in the SG&A expense line that the company did not forewarn investors about.

All in all, the pharma sector has not been great one for ChinaHybrids.

On the positive side: BSPM has still maintained its bullish guidance, but it will not get love until it shows it can meet guidance and recaptures investor confidence. I think we may have to wait one more quarter before EPS growth is attained. I am more worried about the company raising money. BSPM is a crazy cheap stock, but not one of my short-term top five yet, in terms of timeliness. Mid to Long-term, could be a homerun if they get their act together. It will be interesting to see where SG&A comes in at for the 2010 second quarter.

In any event i think U.S. listed China firms are due for a bounce soon, especially when we enter the fourth quarter in preparation for EPS growth that is expected to gain steam in 2011 as many firms will have worked through dilution and new reverse mergers become "seasoned". Still there are at least three issues we must contend with:

1. Will the firms continue to dilute or allow EPS growth to take prices higher before raising money? 2009 has passed. It is back to basics.. Grow EPS!!! Not enough Chinese firms get this yet. If they do begin to understand this finance 101 concept then we will get an enourmous exapansion in P/E multiples.

2. Savvy investors are attempting to poke holes in many companies in the China space. Long-term, this is a good thing, but short-term it can leave many investors in limbo.

3. Labor issues in China will begin to illicit debates over margin pressures.

Maj