Hudson Securities Lowers Earnings Estimates On American Oriental Bioengineering (AOB)

Hudson Securities rates shares of American Oriental Bioengineering Inc. AOB at Hold after the company reported less than stellar earnings results. Hudson is lowing its 2010 and 2011 top and bottom line estimates. In a note to clients Hudson Securities writes, "We are maintaining our Hold recommendation for the common shares of American Oriental Bioengineering Inc. (AOB). Despite a favorable valuation, we believe the Company will continue to face risks of uncertainties from the ongoing China healthcare reform that include (i) increase expense to support ongoing R&D activities, (ii) potential gross margin contraction from continuing raw material price increases; and (c) increase sales, marketing and advertising spending to sustain brand recognition." Shares of American Oriental Bioengineering are down 6 cents to $2.41 in mid-Monday trading.