As technology advances over the next few years, complex procedures such as fracture surgery and arthroscopic hip reconstruction will increasingly move to the ASC setting. One way for investors to capitalize on this long-term trend is through First Surgical Partners Inc. (OTC BB: FSPI), an operator of two ambulatory surgery centers and a general acute care hospital in the Houston area.

FSPI employs some of the top surgeons in the United States. The Company’s reputation for providing high-quality healthcare enabled FSPI to grow revenues 44% and net income 77% year-over-year for the most recent reported quarter. FSPI plans to expand beyond the Houston market by adding four surgical centers over the next two years, which should help drive 25% annual revenue growth through 2013.

Another reason to invest in FSPI: the Company pays a dividend, a rarity among emerging growth companies. The Company declared its third consecutive quarterly dividend in November. With the Company’s nearly 40 physician shareholders owning a large percentage of the shares outstanding, it’s highly likely the attractive dividend payments, which many view as part of their compensation, will continue well into the future.

First Surgical provides investors with an opportunity to participate in a fast-growing, profitable, dividend-paying company that capitalizes on a major long-term healthcare trend. To learn more about FSPI, you can view the Company’s corporate presentation from our New York conference, where we conducted a video interview with FSPI’s chairman, Dr. Jacob Varon.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

If there were an end-of-year award for “Best Business Transformation,” it would undoubtedly go to ChromaDex Corp. (OTC BB: CDXC). For most of its 12-year operating history, CDXC has supplied reference standards and laboratory testing services to high-profile clients such as the FDA, USDA, Pfizer, Estee Lauder, Nestle and Kraft. But this year, in its first major commercialization effort, CDXC made major strides toward transforming into a consumer products company with the launch of its first retail product line, BluScience. BluScience launched in GNC (NYSE: GNC) stores during the third quarter and is expected to start generating significant revenues in 2012. CDXC is also set to expand distribution for BluScience into additional mass market channels in early 2012, as the rollout of BluScience ramps up.

CDXC also launched pTeroPure the ingredient in 2011, the Company’s first proprietary product and the key component in BluScience, in 2011. pTeroPure, based on a compound found naturally in blueberries, was awarded Frost & Sullivan’s “Most Promising Ingredient of the Year” for its tremendous market potential. The health benefits of blueberries are widely known, and pTeroPure has the potential to positively impact heart health, improve cognitive function, and promote healthy aging. pTeroPure’s potential applications in dietary supplements, food and beverage products, cosmeceuticals, sun care and pharmaceuticals, add up to an estimated $600 million market opportunity. In 2011 ChromaDex initiated aggressive strategies to pursue each of these markets.

Since its launch, major supplement players have included pTeroPure in numerous products. CDXC also signed an agreement with Cott (NYSE: COT), a beverage giant whose products are sold in Costco, Wal-Mart, and Sam’s, to create products incorporating pTeroPure. Additionally, ChromaDex is now investigating pTeroPure, together with leading academic institutions, as a potential treatment for skin cancer as well as for its effects on cholesterol, oxidative stress, and blood pressure.

But CDXC’s growth potential doesn’t end with pTeroPure and BluScience. The Company has an array of additional proprietary products in its pipeline, among them anthocyanins, ‘superfruit’ antioxidant compounds that could aid in weight management and diabetes; and nicotinamide riboside, a more potent version of the B vitamin niacin. The Company plans to roll out both products next year using the same strategy that successfully launched pTeroPure.

ChromaDex is strongly positioned for growth in 2012 and beyond as the business transformation set in motion this year begins to bear fruit. For more information on CDXC, you can read the latest RedChip research update on the Company or view CDXC’s presentation from our recent virtual conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

As volatility continues to plague markets globally, and typical income-producing investments become ever scarcer, investors are finding it quite challenging to generate income in their portfolios.

One solution for income investors is First Surgical Partners Inc. (OTC BB: FSPI), a profitable microcap in the healthcare sector that recently declared its third consecutive quarterly dividend.

FSPI, which operates a growing network of ambulatory surgical centers and a general acute care hospital, paid a dividend of $.0225 per share on November 14, representing a dividend yield of 4.5% at its current share price of $2. In today’s dividend-starved world, where even 10-year U.S. treasury notes are barely paying 2%, this represents an extremely attractive draw for investors.

FSPI’s dividend provides a virtual floor on its stock. If the stock price drops, the yield increases, making FSPI even more attractive to position-building investors. Additionally, the dividend is in place to remunerate the Company’s nearly 40 physician shareholders. This means it’s highly likely the attractive dividend payments will continue well into the future.

Moreover, taking the dividend stock play aspect off the table, FSPI is still a well-managed company with an impressive growth story. As we previously discussed, patient visits to ambulatory surgery centers have more than tripled over the past 15 years, reflecting a long-term industry shift from inpatient to outpatient surgery. FSPI is a market consolidator that is successfully capitalizing on this trend, as evidenced by the Company’s newly released third-quarter financial results. Revenues grew 44% and net income grew 77% year-over-year during the three-month period, and case volumes increased significantly. The Company expects strong double-digit annual revenue growth over the next three years.

With strong growth prospects and a growing history of dividend payments, FSPI represents a great opportunity for investors. To learn more about FSPI directly from its management team, and to participate in a live Q&A session, view the Company’s presentation from our recent virtual conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

The demand for nanotech is rapidly growing, particularly in markets such as healthcare, defense, cleantech and consumer goods. Researchers at Ohio State University recently discovered a way to deliver cancer-fighting biomolecules into leukemia cells, and earlier this month, an international research team revealed an artificial muscle with the strength of an electric motor and the flexibility of an elephant’s trunk. Lux Research forecasts that the global market for nanotechnology could reach $2.5 trillion by 2015.

One pure play in the nanotech space is Applied Nanotech Holdings, Inc. (OTCBB: APNT), a Texas-based research and commercialization company. APNT’s technologies have numerous applications across a range of high-growth markets. Reaching profitability and revenues of $8 million in 2010, APNT is entering a period of accelerated growth resulting from the introduction of a number of breakthrough products powered by its technology.

APNT has historically generated revenue by providing research and development services for corporations and government agencies. Among its clients are the National Institutes of Health and branches of the U.S. military. Through its research, the Company’s technology portfolio has ballooned to over 300 patents (150 issued and over 150 pending) in the areas of nanoelectronics, carbon nanotube (CNT) enhanced composites, thermal management materials, sensors, and electron emission technology. With leading manufacturers seeking to license APNT’s various technologies, the Company is negotiating lucrative royalty agreements, enabling it to share in the sales of end products developed by its clients.

The commercialization of APNT’s technology is exemplified by the Company’s partnership with Yonex, a Japanese sporting goods giant, which uses APNT’s Nanopreme carbon composite material in its golf clubs and badminton racquets. The use of Nanopreme results in products that are lighter, stronger and more resilient than conventional clubs and racquets. In the case of golf clubs, this results in greater distance, giving golfers the edge they constantly seek. Yonex plans to release additional products using Nanopreme in the future. APNT has begun receiving ongoing royalty payments from future sales of Yonex products that use the Company’s technologies.

Another of APNT’s products capitalizes on the cleantech boom. The Company has developed spray-on metallic inks for solar wafers, which could make solar power more affordable. The process reduces the thickness of solar panels, is more efficient than traditional application methods, and eliminates the risk of breakage during the application process, resulting in lower production costs. The Company was awarded $1.6 million from the U.S. Department of Energy last year to develop this technology. More information about APNT’s solar ink technology is available in this recent Fox 7 news feature on the Company.

Bottom-line, APNT has a high-profile customer base, a strong balance sheet, and a 51% top-line CAGR for the fiscal years 2006 to 2010. Due to low visibility in the capital markets, its stock currently trades below $0.50, offering considerable upside for investors. With nanotechnology poised to transform everything from medicine to mobile phones, and APNT entering a phase of rapid commercialization, now is an excellent time to begin building a position in this stock.

To learn more about this exciting story, you can view an archived recording of the Company’s recent presentation at our virtual conference by clicking here.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

FSPI is a profitable microcap with expected 25% annual revenue growth through 2013. Rarely will an investor find this type of solid growth in a dividend play. That’s right, FSPI pays a quarterly dividend, and at current prices the rate is about 4.5%.

As we previously discussed, FSPI is a strong ground-floor opportunity that has yet to be discovered by the market. Simply put, the Company is great at what it does, gearing up to expand, and directly positioned to profit from the long-term trend toward ambulatory surgical care. Don’t miss out on your chance to invest.

To learn more about FSPI, please view the Company’s presentation from our August virtual conference.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

The dramatic shift toward outpatient procedures paved the way for the rise of ambulatory surgical centers (ASCs), outpatient healthcare facilities that perform surgeries outside of a hospital setting. ASCs can offer patients greater convenience and shorter recovery times at a fraction of the cost compared to hospitals. In the U.S. today, over 22 million surgeries are performed each year at more than 5,000 ASCs. (To learn more about the factors driving historical as well as recent ASC growth, this 2009 study by KNG Health Consulting provides a detailed analysis.)

Patient visits to ASCs have more than tripled over the past 15 years and are expected to increase in the years ahead, primarily due to technological development, an increased consumer focus on reducing healthcare costs, longer lifespans and an aging population. Millions of baby boomers are reaching retirement age, and their desire to maintain an active lifestyle is expected to fuel demand for outpatient procedures such as arthroscopic knee surgery. This article by Tracy K. Johnson of Health Strategies & Solutions, a leading healthcare management and consulting firm, outlines some of the reasons why ambulatory care services will play an important role in the future of healthcare.

The ASC industry is highly fragmented, creating an opportunity for successful ASC operators such as First Surgical Partners Inc. (OTC BB: FSPI) to emerge as market consolidators. FSPI currently operates two ambulatory surgery centers and a general acute care hospital in the Houston area. The Company’s surgeons perform non-emergency procedures including bariatric surgery; ear, nose and throat surgery; reconstructive and plastic surgery, orthopedic surgery, pain management, neurosurgery and podiatry.

Its state-of-the-art facilities and ability to attract top surgeons set First Surgical apart from its regional competitors. Additionally, the Company’s expert management team has a successful track record of developing and operating physician-owned surgical facilities. On average, each executive team member has over 15 years of experience managing hospitals and ASCs.

FSPI plans to add four surgical centers over the next two years, rapidly expanding its operating network beyond the Houston market. The Company also expects to benefit from the upcoming planned conversion of its ASCs to hospital outpatient departments, which receive favorable reimbursement rates (and offer other advantages) compared to ASCs. The combination of these initiatives should help drive long-term growth and profitability for FSPI. The Company recently declared its second quarterly cash dividend, a clear sign of its management team’s dedication to generating shareholder value.

FSPI provides investors with a strong ground-floor opportunity that has yet to be discovered by the market. Simply put, First Surgical is great at what it does, gearing up to expand, and directly positioned to profit from the long-term trend toward ambulatory surgical care. Don’t miss out on your chance to invest.  

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Are LEXG Investors “One Flew Over the Cuckoo’s Nest”?

By Dave Gentry, President of RedChip Companies, Inc.

The American thinker and writer Tom Wolfe wrote a book called the Electric Kool-Aid Acid Test in 1968 describing the counterculture fascination with hallucinogenic drugs à la “acid” in the 1960s. The LSD culture was led by Dr. Timothy Leary, the Harvard psychologist; Ken Kesey, author of One Flew Over the Cuckoo’s Nest and the founder of the Merry Pranksters, the group of acid heads who gained notoriety for their antics on the Merry Pranksters tour bus; and of course the Grateful Dead, one of the greatest rock bands of all time. The Grateful Dead became legendary and quickly built a cult following by playing in rented warehouses in Palo Alto, California, where their followers would fill pools with LSD mixed with Kool-Aid: hence, the title of Tom Wolfe’s book (See http://obie1.homesite.net/deadcd/acid_test_files.htm). The “Acid Test” was what Ken Kesey called the experience of tripping on LSD on his ranch in the Redwoods of California.

The Pranksters’ destination was “Furthur,” and a sign on the back of the bus warned, “Caution: Weird Load.” Investors associated with the Lithium Exploration Group (OTC BB: LEXG), a $0 revenue micro-cap stock, recently spent $4.5 million for a massive promotional piece, a slick 12-page pamphlet mailed to millions of investors that caused thousands of them to suck up the LEXG Kool-Aid by the gallons. You might say the stock went “Furthur,” shooting up during a five-week period between March 18 and May 24 from $1.50 to $10.00, allegedly almost putting the broker-dealer, Wilson Davis, out of business on a short margin call.  

Yes, like the Merry Pranksters’ LSD bus tour, the stock movement was fueled by a “Weird Load,” a promotional piece that used the classic sales technique of Association, the use of quotes and research about lithium by well-known investors and financial periodicals, implying weirdly and deceptively that LEXG is around the corner from explosive growth and profits from the sale of lithium. 

(To learn more about the uses and composition of lithium, click here: http://education.jlab.org/itselemental/ele003.html)

Spread liberally and strategically throughout the promo piece were quotes from Bloomberg News, The New York Times, Forbes, The Wall Street Journal, Deutsche Bank, Ford, Nissan, BMW, and Warren Buffett. All mention lithium and/or the use of lithium in electric-powered cars. None of the quotes, of course, said a word about LEXG.

Consider for a moment the remarkable claims made in the promo piece about LEXG:  

“LEXG Will Turn the Energy World on Its Head.”

“LEXG owns properties in regions that contain approximately 22.7% of the world’s known lithium reserves…”   

“And in the LEXG’s brine-based claims, the lion’s share of the work is done by 98 oil and gas drilling rigs… where others pay $2400 a ton to extract lithium…our tiny company pays a mere $1200 a ton…”

FACT: They do not own the properties in Venezuela or Canada; they simply have options to purchase the properties based on a strict payment schedule spread out over, in some cases, three to four years. 

FACT: LEXG does not own, operate, lease or license any oil and gas drilling rigs.

FACT: LEXG has not extracted any lithium, nor will they do so in the near future, if ever.  

FACT: “A qualified person as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves of their ‘lithium’ properties.”  (10Q-March 31, 2011)

In regards to both of their “Lithium” properties in Venezuela and Canada, we find this disclaimer on their website:

The tonnages, grades, and other technical data are taken from historical estimates prior to the implementation of NI 43-101. A qualified person as defined under NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Lithium Exploration Group is not treating the historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and the historical estimate should not be relied upon.  

Electric Kool-Aid Lithium Claims Continued

“It’s only a matter of time before the battery-driven demand spike drives the price, and LEXG’s stock, to the heavens permanently.”   

FACT: The stock went from $1.50 to $10.00 and closed yesterday at $2.44.

The word “misleading” does not accurately describe the cornucopia of phantasmagoria the mailer creates around LEXG. On page 9 in the section titled “The Spark That Ignites the Bonfire,” the writer, Elliott Dobbs (if that is actually his name), says, “I can tell you one thing with utter confidence: Everything is positioned perfectly for LEXG.” 

To which I ask:  What about your financials?

Electric Kool-Aid Lithium Test:  Financials

This company was founded five years ago. From May 31, 2006 through March 31, 2011, it has invested $276,200 in “mining expenses.” On its most recent 10-Q, LEXG shows a cash balance of $43,000 for the three months ended March 31, 2011.  From the same 10-Q: 

The Company has been in the exploration stage since its formation on May 31, 2006 and has not yet realized any revenue from its planned operations. It is primarily engaged in the acquisition, exploration, and development of mining properties. Mineral property acquisition and exploration costs are expensed as incurred. (March 31-2011 10Q)

Electric Kool-Aid Lithium Test: A Going Concern

The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development and sale of ore reserves.

In response to these problems, management intends to raise additional funds through public or private placement offerings.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.  (March 31-2011 10Q)

Electric Kool-Aid Lithium: Management Compensation

The Company recently granted 2.3 million shares of stock to its directors, which consist of the president, the chief mining engineer and one other individual. At the time of issuance the stock was trading at roughly $7.00, so they granted themselves $14 million in compensation. This is a company that has spent a total of $256,000 in the past five years on mining expenses, a company that is years away from extracting anything from the ground.  

Conclusion 

Welcome to the Electric Kool-Aid Lithium Test and the Merry Pranksters Management Team. Investors who bought the stock at $10.00 may want to see their doctor for a prescription of lithium, a form of which is used to treat depression. 

Meanwhile, a sensible way to invest in companies in the Lithium space is through the Global X Lithium ETF (NYSEArca: LIT), which is composed of companies in the lithium industry engaged in mining, exploration, and lithium-ion battery production.

Disclosure:  The author has no position in the subject security.

Documented footage of ONBI’s Assets and Operations in China, Interviews with Key China Personnel 

Click here to view video.

ONBI Company Profile 

About ONBI
ONE Bio, Corp. (“ONE”) (OTCBB: ONBI) (http://www.onehcorp.com/), headquartered in Miami, FL, is an innovative company utilizing patented green process manufacturing to produce raw chemicals and herbal extracts, natural supplements and organic products. ONE is focused on the Asia-Pacific region and the United States. Key products include widely recognized Solanesol, CoQ10, Resveratrol and 5-HTP, organic fertilizers, and organic bamboo health food and beverages. ONE has experienced solid organic growth driven by a robust demand for its products in China, Japan and the United States.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv

Take Aethlon Medical (OTC BB: AEMD), a San Diego-based medical device company. As detailed in a recent series of shareholder letters, Aethlon has been busy advancing its Hemopurifier, a blood filtration device aimed at removing harmful viral and bacterial particles from the bloodstream. The first three and a half months of 2011 brought a number of significant developments for Aethlon that could move the Hemopurifier closer to commercialization:

Advancing hepatitis C studies in India: Aethlon is currently conducting a clinical trial in India that will evaluate the use of the Hemopurifier in combination with standard hepatitis C drug therapy. Often referred to as the “silent killer,” the hepatitis C virus (HCV) may lie dormant in a patient’s body for years, even decades. By the time patients show signs of the inflammatory liver disease, treating it is difficult. Less than 50% of patients ultimately respond to standard of care HCV drug therapy.

Aethlon’s clinical trial program took an important step forward in early 2011 when the Company initiated treatment of its first patient. India provides Aethlon with an early commercialization opportunity, as it is estimated that 20 million of the 180 million people infected with HCV worldwide reside in India. Furthermore, achieving commercialization in India would enable Aethlon to capitalize upon the country’s emergence as a medical tourism hub. According to market intelligence firm Research and Markets, approximately 570,000 patients visited India to receive medical care in 2008, contributing $880 million to the Indian economy. Aethlon is ramping up patient enrollment and is seeking to open up its clinical trial to patients who live outside India.

The clinical trial also plays a significant role in Aethlon’s U.S. commercialization strategy. Aethlon is close to submitting an updated Investigational New Device application to the FDA, which would allow the Company to run parallel studies in the U.S. The study in India will expand Aethlon’s collection of data and also provide a backdrop for Aethlon to move toward studies in cancer.

Showcasing Hemopurifier for U.S. government officials: In January, Aethlon was invited by the Department of Health and Human Services (HHS) to present its Hemopurifier technology platform before multi-agency health officials. This presentation led to follow-on meetings and presentations, including a formal presentation to the Biomedical Advanced Research and Development Authority (BARDA) in February. 

If recent data is any indication, Aethlon has ample opportunities to participate in government-funded biodefense programs. Freemind Group, a consultancy firm focused on governmental grant identification and application assistance for the biotechnology industry, recently reported that there has been a dramatic surge in biodefense and infectious disease funding opportunities from the U.S. government. They forecast that funding applications submitted during the months of May, June and July will result in cumulative awards of approximately $500 million. The Hemopurifier has potential applications across a wide range of infectious diseases, giving Aethlon a unique advantage over biotechnology companies whose technology platforms are designed to treat only a single disease.

Applying for DARPA initiative: The Defense Advanced Research Projects Agency (DARPA), the government agency that “fathered the Internet,” released a broad agency announcement in early February titled Dialysis Like Therapeutics (DLT).  The program aims to develop a portable device that removes “dirty” blood from the body, separates harmful agents, and returns “clean” blood to the body in a manner similar to dialysis treatment. The target application for the device is blood poisoning, although the device could have other medical applications. Aethlon submitted its proposal on April 1 and expects a decision in the next four months. Several organizations and industry thought leaders have agreed to partner with Aethlon if it is awarded a DARPA grant.

Validation of ELLSA: More recently, Aethlon announced on April 12 that its wholly owned subsidiary, Exosome Sciences, Inc. (ESI), had its Enzyme Linked Lectin Specific Assay (ELLSA) validated by a well-regarded research institution.  ELLSA will be used to identify the presence of immunosuppressive exosomes underlying the HIV virus, tuberculosis, and various forms of cancer, including ovarian, melanoma, breast, lymphoma and colorectal. In addition to research opportunities, Aethlon Medical plans to test ELLSA as a diagnostic to quantify the therapeutic capabilities of the Hemopurifier to remove exosomes from the circulatory system of those afflicted with cancer.

ESI is now preparing a market survey that will be provided to researchers to determine market demand and pricing for ELLSA as a research tool.  As FDA approval is not required to commercialize assays for the research markets, the Company anticipates that ELLSA could be a source of near-term revenues.

RedChip Research recently published a 3QFY11 update on Aethlon, available for download here. Aethlon is gaining momentum with its HCV, biodefense and cancer programs, making AEMD an attractive early-stage opportunity for biotech investors.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

For a free RedChip research report on ONBI, click here.

According to research firm Global Industry Analysts, the nutraceutical market, which includes supplements and functional foods and beverages, is expected to surpass $243 billion worldwide by 2015.  One company profiting from the significant growth of this industry in the Asia-Pacific region is ONE Bio, Corp. (OTCBB: ONBI), a U.S.-based nutraceutical producer operating primarily in China and Japan.

ONBI has a broad product portfolio that reaches into nearly every subset of the booming nutraceutical market.  Its product offerings include in-demand chemical and herbal extracts such as resveratrol and solanesol, health and energy drinks, organic food products, and organic supplements.

The Company’s U.S. management team is highly experienced and has a track record of delivering strong corporate performance.  ONBI recently reported record results for fiscal 2010, with 137% sales growth and 82% net income growth year-over-year.  This growth was primarily due to an increase in demand for its products as well as two acquisitions the Company completed in the third quarter of 2009, which substantially expanded its product portfolio.  

Looking forward, ONBI has several key strategies that will drive growth in both the near and long-term:

While the majority of the Company’s business is currently generated in China, recently announced distribution deals with Sanyo and Toyo, two major Japanese trading companies, should drive further growth for the Company’s organic products division (“OP”) in ONBI’s second largest market: Japan.

Another growth driver for the Company is its recent move beyond simply wholesaling raw materials in its chemical and herbal extract (“CHE”) segment.  The successful launch of Ganoderma Tea, ONBI’s first over-the-counter health beverage, demonstrates the Company’s ability to leverage its raw material resources to generate high-margin end-user sales. 

Additional catalysts for strong growth will come in the form of key acquisitions.  Two potential targets have already been identified: one that will enhance the Company’s OP business segment and one that will accelerate ONBI’s strategy of pursuing high-margin end-user sales in its CHE segment.

With the Company’s strong revenue and earnings growth and its stock trading at a fraction of book value and a fraction of sales (0.7x and 0.5x, respectively) ONBI represents a deep value play with impressive growth characteristics.  For more information on why we view ONBI as a great buy at these prices, please read our newly issued research report on the Company available here at RedChip.com.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.