Rumor Mill CBPO

Wow, CBPO got taken to the cleaners today... by a rumor. Checkout the chart for the day:

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China Biologic Products, Inc. (NGM)

Range: 1d 5d 3m 6m 1y 2y Type: Bar | Line | Candle Scale: Linear | Log Size: M | L Compare: CBPO vs S&P Nasdaq Dow Want more control over the chart? Try our Interactive Chart. Splits:none

Last Trade: 8.71 Trade Time: 4:00PM ET Change: 3.05 (25.94%) Prev Close: 11.76 Open: 11.56 Bid: 8.61 x 500 Ask: 8.85 x 100 1y Target Est: 17.50

Day's Range: 8.44 - 11.70 52wk Range: 1.67 - 13.70 Volume: 1,004,190 Avg Vol (3m): 106,718 Market Cap: N/A P/E (ttm): N/A EPS (ttm): N/A Div & Yield: N/A (N/A)

10x normal volume and an incredible 25% plunge. What caused it? A blog. China Biologic: There Will Be Blood

The author, who openly admitted he is short CBPO, essentially says that the people who seeded the company are felons and insinuated not all is as it seems with the company. I have seen this play out several times with these Chinese companies, LIWA and CSKI also had "scare" short articles. They have not yet born out to be correct and I'd suggest there is no reason to believe there is truth behind this one as well. It is troubling that people try to start these stampedes, I suspect it may be illegal, though if there are some facts behind the post it may be impossible to press charges. Good chance for the brave to buy CBPO. Here are my stats for them (if you believe the Compustat filings):

		cbpo
+	Operating Income After Depreciation	45.31
-	Minority Interest - Income Account	11.72
=	Income for Calculation	33.59
	Diluted Shares Outstanding	21.633
	Share Price	8.71
+	Market Cap Calc	188.42
+	Preferred Capital	-
+	Debt in Current Liabilities	18.58
+	Long-Term Debt	0.05
	Cash and Short-Term Investments	50.35
-	Excess Cash	50.35
=	Enterprise Value	156.70
+	Property Plant and Equipment - Net	27.85
+	Receivables	2.44
+	Inventories	33.22
+	Other Current Assests	1.58
+	Working Cash	-
-	Accounts Payable	3.61
-	Current Liabilities - Other	33.56
=	Invested Capital	27.93
	Earnings Yield	21%
	ROIC	120%