We finally touched 20,000 RMB/ton for the Bromine price (about $3,200/ton) so the trend up continues and it could mean that for the first time in a long time prices of Bromine could be a positive quarter over quarter ( Q4 versus Q3), not year over year yet. Just to put things in perspective the price for the whole of 2011 was $4,080/ton, it went down to about $3,600/ton by the end of 2011 and remained there in Q1 at $3,569 and Q2 at $3,486 until it dropped in Q3 to $2,900 and if it continues the trend up or at least maintain the current price will be certainly above $3,000 in Q4. It would have to gain another 12% from the current $3,200/ton to match Q1/2012 so still some way to go but not impossible.
Given that they have since last year increased capacity if demand is returning to levels seen last year, it could also boost revenues significantly. Their material costs are also significantly lower than last year and with higher production the amortization & depreciation element of their COS will come down by ton, so overall we should see also an improvement in gross margin directly the results of the upgrade investments they made which have been pretty costly but could pay off if Bromine demand comes back up.
This is why I am so focused on Bromine prices as they are the key to driving significant profit and cash flow improvements.
Why not show your data-source, alan. Crude Salt?
Why isn't GURE trading well below 50 cents
considering so many better opportunities for China investors currently.
Frankly, I think below 20 cents is appropriate and reasonable.
not only Bromine price is going up strong, the Crude Salt is doing the same. Stock price will follow very soon. Of course,
Shorts has been right, congradulation to them, but it is the time to cover and lock in the profit before the year end. It is easier now to make $ on the long side. China's economy is picking up steam again according to my relatives in China, doing good business in different areas.