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Gulf Resources, Inc. Message Board

  • alan74z alan74z Apr 24, 2013 12:01 AM Flag

    There are few but great Chinese stock stories in the US

    I know that GURE stock price flirting with the $1 price has been very disappointing, the fact that the company has finally shown that they are ready to jump to defend this price point critical of a potential delisting means that they are doing everything they do to avoid delisting. They have been filing their reports even early which is a change versus a couple of years ago where they had often to ask for late filings, they have hired some SOX experts too. In some ways the fact that they gave shares as part of their latest purchase of production facility could put them in an odd situation with the Chinese seller if the stock was delisted.

    Looking at other Chinese companies I found the example of China HGS Real Estate Inc. (HGSH) interesting, in October they saw their stock price going down to less than $1 for a while in fact end of October it was at $0.40 and received notice of potential delisting, they didn't announce a buy back but insider now own close to 70% of the stocks and they could have behind the pricing action but by November the shares went back to $2, by end of February they were at $4 and since then have gone through the roof perhaps at a pretty high valuation of over $12 (book value is below $2/share and PE ratio through the roof as well), an increase of 30 times, 3000% in just 6 months. Short sellers tried to attack it when it was in the $2-$4 range but got badly burnt and have left since. HGSH could be an exception and could have gone too high now but it shows that value of a Chinese company can still be recognized at some stage on the US market. I will do more research but it gives hope in a company like GURE.....

    Sentiment: Buy

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    • tdcburns Apr 25, 2013 11:41 AM Flag

      check out LIWA's numbers. Someone is supplying all that copper wire for all these chinese real estate developments speaking HGSH.

      P/E $2.64
      EPS $1.93
      Cash $144M
      Mrkt cap $152M
      Debt $0
      ROE: 23
      ROA: 18
      Revenue: $854M
      Operating cash flow: $49M
      Leveraged free cash flow: $27M
      Qrtly Revenue Growth (YOY): 44%

      This LIWA is 6 times undervalued. Just a 10 multiple off 2013 yr end EPS says LIWA makes LIWA a $27 stock.

      LIWA is the next VIPS, HGSH, CBPO.

      Buy the Dip, buy the Hit, and buy the Rip!

      Sentiment: Strong Buy

1.48May 2 3:59 PMEDT