I listened to the earnings conference call and I thought there was too much focus on potential NG. A number of questions focused on dividends. Personally, in my opinion paying a dividend should not be a priority; however, I do like the idea of using some of the cash to buy back stock. Buying back shares of GURE helps show investors that the company believes in themselves and that they current stock price undervalues the company. After listening to conference call I did not expect to see the stock price move up.
GURE would be significantly higher in price if it was not a China company and the fact they do not have a real investors relations person/firm. I am in the chemical industry and I have followed this company for a number of years. They have a great balance sheet and very good cash flow and have grown revenues and profits. The price of bromine has been at all time lows while GURE continued to make a profit. The United States, Israel, and China are the three largest producers of bromine. The two of largest companies in the industry are Albemarle Corporation and Israel Chemical. In recent months, both Albemarle and ICL have announced substantial price increases for bromine. Albemarle announced a 30% increase in bromine prices and Israel a 20% increase, the China bromine prices have not caught up to these price increases but should continue to move higher. In addition, GURE has accelerated its transformation from a manufacturer of raw materials into an integrated producer of value added downstream products with the recent acquisition of Shouguang City Rongyuan Chemical Co., Ltd. (SCRC), a leading manufacturer of materials for human and animal antibiotics in China and other parts of Asia. Those are the facts. Note, I have not even mentioned the potential for NG.
In my opinion it is important for GURE to hire a good investor relations (IR) firm. This would provide visibility to additional investors.