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Gulf Resources, Inc. Message Board

alan74z 17 posts  |  Last Activity: Sep 8, 2014 1:51 PM Member since: Feb 2, 1999
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  • Reply to

    response from the company to my letter

    by alan74z Sep 4, 2014 9:03 PM
    alan74z alan74z Sep 8, 2014 1:51 PM Flag

    Thank you all for your support, we have not even started to organize and we have already close to 1m shares adding all the shares you listed as supporting an initiative if nothing happens by the end of the year, that's already 2.5% of the shares so we should be able to reach 5% or more easily, this should give us more credibility as a group when we talk to the company. Thanks again and let's hope we do not need to do it and that the company will act soon one way or the other to ensure that shareholders get the value they deserve.

    Sentiment: Hold

  • Reply to

    response from the company to my letter

    by alan74z Sep 4, 2014 9:03 PM
    alan74z alan74z Sep 5, 2014 1:33 PM Flag

    Thank you all for your support, I think that if nothing has happened by the end of the year before a shareholder meeting will need to be scheduled and the election of the board will be due, we should see how many shares we can get in support of requesting changes in the way the current board is managing shareholder value, if we get enough shares we could even ask for them to consider the addition of a board member representing better our interests or have some kind of an action to force a change, I am open to ideas from this group. For sure having a large enough number of shares could increase our ability to influence and based on what I have seen already we should be able to reach the number of 5% or more easily. Anyway, I also agree that the company talking of a strategy is not enough and let's see now if real actions will follow to execute on this strategy but since November 2012 nothing significant has happened. They have focused on increasing the Chemical Business but it has only be a marginal improvement with very little cash involved.

    Sentiment: Hold

  • This is the answer I just received from the company:

    "The company has a vision to be word-wide producer in future among its industry. And in order to achieve this dream, it has an objective of perfect production chain in the industry with much bigger production ability. Currently company has several raw materials factories( producing crude salt and bromine) and one special chemical production factory. it will have to do several more acquisitions in horizontal such as crude salt assets acquisition , and vertically acquisition such as downstream special chemical production factories. And this include the Sichuan projects as well which also has a big potential,as mentioned during the earnings call. Company think by doing this , its size will be much bigger with much more profitability in few years. And its anti-risck ability will also increase if during economic depression. And that time, there will be big funds interested in company with much higher stock price . We will have a win-win situation between company and shareholders as well then. That’s why company management think the cash using by this way will generate more benefits than just buying stock which is only good for short-term holders. But if the objectives failed, company will sure return the cash to our shareholders and investors since it is not a bank for saving cash.
    This the company’s near future dream, and we are already on the way."

    My reaction is that, I am willing to give them a couple of quarters to start executing on their vision but if nothing has changed by the end of the year, I will go back to them and will ask them to now start reducing the cash and could start a shareholder action if they don't. At least they didn't ignore my letter even if the answer is still not satisfactory in my opinion but they are on notice that they have to start buying those assets and use this cash or return it to the shareholders.

    Sentiment: Hold

  • Reply to

    Alain Peracca, Microsoft VP, Audit

    by whbuncensored Sep 4, 2014 8:21 PM
    alan74z alan74z Sep 4, 2014 8:32 PM Flag

    I left Seattle in 2010 and I now live in Palm Springs, CA

    Sentiment: Hold

  • Reply to

    Alain Peracca, Microsoft VP, Audit

    by whbuncensored Sep 4, 2014 8:21 PM
    alan74z alan74z Sep 4, 2014 8:29 PM Flag

    wow, yes all my information is public, I am now retired but still very active on various fronts, including spending a lot of time with my family :)

    Sentiment: Hold

  • Reply to

    China Housing & Land Development

    by whygjd56 Aug 26, 2014 10:14 AM
    alan74z alan74z Sep 4, 2014 5:35 PM Flag

    Thank you, yes let's see if they answer but with my 200K shares you and I are close to 1% already of the shares, if we could get to 5%, we could certainly have a stronger voice, we could have to file a 13D but I have now experience on doing so, not that difficult and not that costly and it makes us more legitimate as a group but we are not there yet and hope management will engage with us and come up with a plan for the cash very soon for the interest of all including insiders. If they are planning a buy out, it will be time for them to move before we organize as we could become a force they will have to consider if they hoped to buy the company on the cheap. we will see, I will let you know if I get an answer soon, if we get no answer we could start forming the group by the middle of this month. Thank you for your support.

    Sentiment: Hold

  • Reply to

    China Housing & Land Development

    by whygjd56 Aug 26, 2014 10:14 AM
    alan74z alan74z Sep 4, 2014 5:05 PM Flag

    Just FYI, I wrote 2 weeks ago telling management and the board that a number of shareholders were very concerned with the current stock price in relation to the cash value or book value of the company, not only such a low price could attract financial raider trying to buy the company on the cheap and then liquidate the assets to get a nice return but also such a low price is resulting from the fact that people are questioning the actual size of the assets including the cash. Management has said quarter after quarter that they were keeping the cash to buy new assets but after now more than a year without buying any asset, shareholders would like to know what is the plan for this cash. I told them that we would like to know if they have some imminent asset purchases in the pipeline and if they do not have then they should come up with an alternate way to use at least some of the cash that keeps accumulating at a $10m a quarter. I suggested to either announce a significant quarterly dividend or, and this is my preferred option, a stock buy back authorizing mgmt to buy stock as long as the stock price is below cash value or $3.3 and assigning half of the quarterly cash flow from Op to such a buy back (or about $5m a quarter), and this time we would expect this buy back to be done over the course of a given quarter. In the absence of asset purchases, dividend or buy back, I told them that shareholders would certainly organize in a group with the intention to influence the Board (meaning potentially if we get enough shares behind this initiative, requesting new board members representing better our interests). I was told by Helen she would deliver my message, this was 2 weeks ago, I sent a new message today asking for an answer. I will let you know if I hear from them but if I don't we should consider getting a shareholder group which hopefully will have more impact. Already 2 shareholders contacted me to form such a group, I could be ready if they ignore my last letter!

    Sentiment: Hold

  • Reply to

    perhaps time to organize US shareholders of CELM

    by alan74z Aug 17, 2014 1:20 PM
    alan74z alan74z Aug 29, 2014 7:23 PM Flag

    Would one of you have the phone number or address or email of the company investor relation or CEO ?
    Thank you

  • Reply to

    perhaps time to organize US shareholders of CELM

    by alan74z Aug 17, 2014 1:20 PM
    alan74z alan74z Aug 29, 2014 7:14 PM Flag

    Thank you, we have managed to get already shareholders owning over 1.2m shares or over 5% of the outstanding shares, the more shares we get the stronger our voice will be. Delaware where CELM is incorporated is more shareholder friendly than Nevada but we still need to demonstrate that the company is endangering our assets and we are at risk of them mismanaging or even stealing them. We should certainly try first to talk to the company and ask them in the name of the x% shares we owned, what is their plan to deliver value to the shareholders now that the company is deregistered. If they answer we will have to evaluate the answer if they don't it will give us one more argument with the judge to show the risk of mismanagement of the assets. It would also be nice to see how SCEI where a legal action has been engaged and a receiver appointed, will evolve, a success there could provide us with a better chance of success even if the two situations are very different. Anyway, I believe that shareholders should at least try to fight by teaming up, even if only to try to engage with the company's management, using the legal route to force them to cooperate as a last resort. If you want to join this action write to me at celmowners on AOL

    Sentiment: Hold

  • They had ignored the shareholders when we requested a shareholder meeting and the release of financial information even if unaudited to give us a sense of what the company was doing during these last 2 1/2 years, it took to put them in receivership and to take control of their holding company in Hong Kong to make them finally react and take us more seriously !!! This is for sure a small victory but still far from winning which will only be a Win if we are able to get one way or the other close to the book value of the company for each of our shares. So still a long way to go but it shows than when shareholders decide to fight back and organize, they can have an impact. Let's see what the next steps from the receiver and from the CEO are to see how things are developing but it is not because they are calling a shareholder meeting and releasing UNAUDITED financial statements that the pressure will decrease on them to deliver the value that all shareholders deserve. By the way to those who wondered the 13D filing group still exists and has still very close to the same amount of shares they had when they filed, therefore requiring no additional filings until it changes. Now the shareholders' interest is in the hands of the receiver appointed by the Nevada judge and we as a group are fully supportive of what the receiver has done so far.

    Sentiment: Hold

  • I know it is a long shot but it could be time to organize the shareholders of CELM and go after the company in the Delaware court where they are incorporated. Delaware is more shareholder friendly but we need a minimum of shares to be able to engage an action so first let's find out how many people would be willing to join the action. The goal being to engage Management of CELM to discuss how they expect to deliver some value back to shareholders, even if they are not registered anymore they are still a Delaware Corp with shareholders owning its assets. If they are willing to come up with an agreement like a Buy out or selling the company to another one and offering compensation to current shareholders, then we will negotiate the terms if not we will use the court to show that shareholders are being armed and the company is at risk of stealing the assets, then we can get a court order to appoint a receiver to take over the company's board.
    OK so if you are interested in teaming up for an action, send me your name and number of shares you own and I will start a communication email list sharing with you how many we are and we will then decide together what legal route to take. The first communication should be with the Company's Board telling them we want to talk to them and see what they have to say but making it clear that if they ignore us we will go the legal route to put the company in receivership. I created a new email on AOL under CELMOWNERS, send me your information there and I will let you know how many we are and we will decide on potential actions.

    Sentiment: Hold

  • Reply to

    My take on the Conference Call

    by alan74z Aug 11, 2014 3:50 PM
    alan74z alan74z Aug 11, 2014 6:13 PM Flag

    Agree with the Daying County assessment and not sure when/if it will ever be considered again. For sure it is less risky and given the current market environment certainly even cheaper to buy existing bromine production facilities than developing Daying County, they were talking about investing 100's millions in developing this project while looking at their last acquisition, $10m buys about 3,000 tons of production capacity or about 6% of incremental capacity so spending only $30m they could push capacity up by about 20% which they do not need right now as they are operating at 50% of capacity. So yes Daying County is not anymore a top priority if it is still a priority at all.

    Sentiment: Buy

  • First of all I liked all the questions, the translator was not very good and the line was bad but overall here is what I retained.
    On the possibility of an hostile bid for the company to take advantage of the low stock price and high cash value, I would not be surprised if the company proposed an hostile takeover poison pill at the next annual meeting as they said that they are going to try to protect the company from such a possibility. I would certainly not vote for one as I would like the company to be worried about such a possibility if the cash balance keeps growing and continues to be way above the market value of the company.
    On the stock buy back, no hope for the near future but when asked about the use of cash they repeated several times the fact that they want to buy some business on the Chemical manufacturing side to reduce the risk of the company associated with raw material prices, they also mentioned the possibility of buying more Bromine and Crude Salt production but it seems that this is the number two priority, which I like. They also said that if they do not find any such business to buy at an acceptable price they could reconsider the buy back option but no timing with this possibility, so who knows when. I do hope as I have now been waiting for a few quarters that they start announcing a Chemical Business purchase as it would for sure show that they had a plan for this cash as right now it is the big unknown and certainly the reason why the stock is going nowhere.
    Finally on the dividend question, they said that they had difficulties paying such a dividend with the Chinese authorities limitations, the caller said that he could help them doing so and providing the right contacts and expertise to do so, they said they would talk by email. Again not sure if it was just to pretend that they would pay a dividend if they could but have no intention of doing so but we will see. This investor could call back next quarter and share what happened

    Sentiment: Buy

  • No big surprise and in line with my expectations, Chemical is now what is driving the profitability of the company given the low Bromine and crude salt prices, they confirmed the Q1 trend and thank to this re-balancing of the Business they were able to generate even more EPS at $0.15. As expected too, as they didn't purchase any asset/business (which is disappointing), the cash balance kept going up by about $10m again this quarter or a $40m run rate for the year (over $1 a share a year). They now have a cash balance of $3.30/share which is ridiculous given the current stock price. The issue is that until they use this cash for Buy back, dividend or asset/business purchases, given the lack of transparency and trust in the Chinese companies, investors are not only discounting the Business but also the cash when they value them. Ridiculous but not an exception with all those Chinese companies selling at a fraction of their book value or cash value.
    Anyway, these are again good results in the still depressed bromine and crude salt markets, at this rate they could turn a 2014 EPS of $0.55-$0.60 meaning that their current stock price would represent a PE ratio of around 3.5 and a book value of $7.80/share. Any turn in the Bromine and crude salt market would have a significant impact on these earnings. I am still a Buy at the current prices, at least until it reaches its cash value and will continue accumulating shares over time.

    Sentiment: Buy

  • alan74z alan74z Aug 7, 2014 6:54 PM Flag

    my guess on this one is that the equity portion that will remain with the current shareholders will have a very low value, equivalent to $0.40 or $0.50/share (0.5% of a company with a book value of $1.4+B but no clue of the new market value) but the big question mark is how much the warrants will be worth and this is the big unknown and the largest potential value for the current shareholders as it will be for the current shareholders 15 times the size in number of shares that they will receive in new equity, so based on how much such long term warrants will be valued at, will determine the true value received by the old shareholders. Right now until we have the details of the implementation of the restructuring it is very difficult to assess and will certainly create some volatility in the current stock price.

    Sentiment: Hold

  • Reply to

    ALB getting hammered today

    by southernred_dog Jul 31, 2014 10:56 AM
    alan74z alan74z Aug 5, 2014 11:33 AM Flag

    Be careful when comparing ALB, their Business didn't do too bad last quarter with a revenue increase of 5% and a net Income increase of 10% compared to last year but a lot higher compared to the previous quarter, what has been causing the drop is the fact that people are nervous with the announced acquisition on July 15 of a Chemical company for $6.2B while ALB market cap is less than $5B. The uncertainty and risks taken by ALB would for sure justify at least immediately a stock price decrease. They are saying that the deal will help earnings the first year as they believe there are synergies and cost saving potentials, people will want to see those before pushing the stock price higher. I have been following ALB and for sure I would be cautious to deduct anything for GURE from their current stock price movement. Anyway I am now waiting for the Q2 results of GURE to see how well or bad they did, my guess is that it will be another decent quarter for earnings and excellent quarter for Cash Flow but who knows what the stock price will do as the stock price doesn't reflect the Business performance of the company. It should go up but who knows. Again GURE is not the only company whose price is disconnected from its performance, most of the Chinese companies trading in the US have the same problem. Let's hope that with the new Chinese government drive for more transparency and accountability which is still timid right now but moving in the right direction, this discrepancy will correct itself over time but it could take another year or two and who knows what can happen by then (buy out, acquisition, merger, ....)

    Sentiment: Buy

  • Reply to

    When is 10Q ?

    by marubadbad Jul 25, 2014 2:26 PM
    alan74z alan74z Jul 29, 2014 3:40 PM Flag

    The official SEC deadline for an accelerated filer (Over $75m of market cap) is Aug 11 which is a Monday based on the fact that they lately filed slightly before the deadline, we could have it on the Thursday or Friday the previous week, i.e. Aug 7 or 8, meaning end of next week ! So just around the corner. The price of Bromine has been very stable in Q2 versus Q1, the volume could be higher as Q1 has the Chinese New year impact, the big unknown is the Chemical Business. Did it do as well as last quarter or even better did it keep momentum that it showed in Q1 ? As we have not heard sadly enough of any investment in Q2, I do hope Q2 to be again a solid Cash Flow quarter with certainly an increase in Cash of around $10m again bringing the cash balance at close to $130m or $3.35/share, when are they going to use this cash either for acquisition or for stock buy back/dividend ??? I also agree that with so much cash value, a Management Buy Out could be in the pipeline but this would not be my preferred option as based on what I have seen lately with depressed stock prices, Management has been able to buy the company at a fraction of the asset value, so they could try to buy it for even less than the cash value and still be successful as small investors are usually no match.

    Sentiment: Buy

GURE
1.70-0.14(-7.61%)Sep 19 4:00 PMEDT

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