the recent 7th acquisition which boosts the crude salt production 50 % and the bromine production 15% will make GFRE surpass 0,30 $ eps for 2009.
the estimated 2010 eps will be about 0,40 $ since the 6th (announced back in january 2009) and the recent 7th acquisitions are not FULLY integrated in 2009.
i expect now news for an 8th acquisition as the CEO said during the 7th acquisition
"Following the successful closing of the acquisition, the Company expects to start production utilizing the newly purchased assets in November 2009. The Company estimates the manufacturing assets will add 4,000 metric tons to its annual bromine production capacity and 150,000 metric tons to its annual crude salt production capacity.
"The acquisition is expected to bring SCHC's annual production capacity to 38,700 metric tons of bromine and 450,000 metric tons of crude salt. Based on current market prices for bromine and crude salt, we expect the added manufacturing assets to contribute $2.6 million of revenue for the fourth quarter of 2009 and $11.3 million of revenue for fiscal year 2010, with an expected gross margin of approximately 43%," stated Xiaobin Liu, CEO of Gulf Resources. "This acquisition will further expand our market share and strengthen our competitive position as suppliers of bromine and crude salt, which should enhance our pricing power. We intend to continue assessing additional bromine and crude salt asset acquisition opportunities given our strong cash position as we believe these projects offer a healthy return on investment."
Rembini fluctuated 6.76 to 7.00 over last year with current price at RMB 6.82/$
Obviously Chinese bromine prices are quoted and fixed in RMB and not US$ because 80% of bromine in china comes from local sources and only 20% is imported.
When GFRE gives us a price guidance, they are actually converting RMB values to US$ values for the convenience of US stock holders.
pls provide links for it.
pls also provide the range of this fluctuation. even if it fluctuates, it must NOT be that much . in other words, it must NOT be more than 5 %. so if a price hits a record in $$$ values , it will also hit a record in RMB values.
Renminbe and US$ rate is fixed.
In the unlikely event Chinese govt. was to let RMB float, RMB will be stronger compared to current rate and this will increase GFRE's profits when presented in US$.
hahahaha that is funny !!!
the exchange rate between RMB and $$$ is about the same during the last 1 - 1,5 year. it is 1 $= 7 RMB
Minor fluctuations have happened at the exchange rate between these 2 currencies and these fluctuations are at the range of some CENTS !!