Fri, Apr 18, 2014, 11:49 PM EDT - U.S. Markets closed for Good Friday

Recent

% | $
Quotes you view appear here for quick access.

Gulf Resources, Inc. Message Board

shinysilvercoin 11 posts  |  Last Activity: Apr 4, 2014 3:19 PM Member since: Aug 30, 2011
SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • Reply to

    STock price kept low for take down???

    by billwilson1804 Mar 30, 2014 10:12 AM
    shinysilvercoin shinysilvercoin Apr 4, 2014 3:19 PM Flag

    Tradelogic - you are right. My comments were more of sarcasm - really meaning that is how management is operating, not that I agree with the approach.

    :)

  • Reply to

    STock price kept low for take down???

    by billwilson1804 Mar 30, 2014 10:12 AM
    shinysilvercoin shinysilvercoin Apr 4, 2014 9:11 AM Flag

    Well, now that the shorts have returned to spewing their garbage fear tactics, looks like we'll go higher on another scalp trade soon. GURE is on the radar of the crowd traders. The reappearance of eatbrowneggs (EBE) is the catalyst we are looking for.

    You hear that? It's time. :)

    Knowing that Q1 is typically a slower quarter due to new year holiday, they think there are no catalysts to drive the price higher for the short term. Maybe so, but I would not bank on the price moving below $2 - too many shares sold for over $2 during the past 6 months. All we need are a lot of shorts and then we do not need a financial catalyst. "Cover under 2 in 2" says EBE, Ha!

    Fundamentals of GURE are stronger now than ever, bromine price has bottomed and slowing recovering, this summer should be interesting. Before jumping on lack of dividend and buyback bandwagon, think about the long game - that's what management is focused on and there is no changing that. The active repurchase program is solely to keep the stock above $1 to reduce risk of delisting. It is absurd to think they want to go dark after all they have been though. Why bother with worrying about short term fluctuations in the share price? Not like they need to issue anymore stock with the freshly audited & verified cash hoard of $100MM+ and not like any of the directors are getting voted out. Instead, they concentrate on running the company and letting the financial results speak for themselves.

    Don't get me wrong, I like EBE, made money on one of his picks a while back (CALM) - and that time he called into the earnings conference was priceless, now banned from calling in? I am always amused with EBE's creativity in trying to cause folks to sell.

    By the way, I'm not an alias of Bloody, although I admire his energic approach. You should be able to tell by our differing writing styles my friend.

    Happy Friday everyone.
    I'm Longgg!

  • Reply to

    Insider Selling

    by tradelogic2001 Mar 24, 2014 5:18 PM
    shinysilvercoin shinysilvercoin Mar 25, 2014 11:39 AM Flag

    Yep - this one was a true insider sale. 2 steps forward, 1 step back.

  • Reply to

    Page F-16

    by kingfrogcash Mar 18, 2014 6:26 AM
    shinysilvercoin shinysilvercoin Mar 19, 2014 12:18 PM Flag

    Thanks Red - and keep in mind that it is not just a lighting company - as you know how Chinese conglomerates are usually a mixture of unlikely product lines (blurry economies of scale) - and perhaps GURE is the cash cow that helps support some of these other "chairman owned" companies (similar to the office building purchase/maintenance agreement you mentioned) providing working capital to these companies that are either doing well or not so well (no telling), however, these amounts appear insignificant relative to GURE's balance sheet - to me, the big picture is that GURE is important to the chairman, and to some extent, the chairman's other businesses are important to GURE as the relationship creates part of the "sphere of influence" or "political sway" needed to continue to attract large customers for GURE (or to progress with Daying, or to acquire a new chemical company - party favor is required, and if you look at the chairman's political ties, you see it is probably worth $100K on maintenance to help grease the wheels). Good or bad, it is the way business gets done in china. If the price for these arrangements is what we have seen so far, then I am comfortable investing in GURE for the longer term. Those employees did need an office to work in - and for the increased sales force to properly host new client prospects - and if close proximity to the chairman's other ventures is important...well, we got that too.

    Sure, this is a spec investment. But I think that trading it alone may be difficult to time exactly right. I trade it, but also keep a core investment that continues to lower in cost averaging.

  • Reply to

    Page F-16

    by kingfrogcash Mar 18, 2014 6:26 AM
    shinysilvercoin shinysilvercoin Mar 19, 2014 10:16 AM Flag

    Southernred - yes, I respect your opinions too. The reason I say the short-term borrowing from Ming's other companies is related to PRC shadow banking is from some accounting tricks that I commonly see within Chinese companies - as well as some U.S based companies. Here is how the accounting trick works between the related companies (for hypothetical purposes): Gure "borrows" from a related company which is unsecured, interest free, and repaid very quickly - even though GURE has a huge cash hoard sitting in the bank. The related company records the transaction as a sale (to inflate top line revenues) and gives GURE a "product and/or service" (the "borrowing") which is then liquidated for cash or an account receivable (repayment for the "borrowing"). This is a scenario I commonly see with many companies, especially multi-nationals - not saying it is right or completely above board - but happens everyday. It is my speculation that this activity may account for the GURE transactions in question, using GURE's clientele for pushing out the products/services of Ming's related companies. Not that it makes me feel better, but the size of these transactions is not significant. To me, this does not provide any proof that GURE's $103MM cash hoard does not exist, but is a red flag that related transactions may be a little more than meet the eye.

    Again, not to imply suspicious activity, but this may lead to the rationale explanation that you were looking for Red. IR has not been helpful on my questioning of this item in the past - giving a canned response about interest rates being low on demand deposit/savings accounts - could be, I mean I only earn 0.75% on my own savings - and they do report a small amount of interest income - which to me represents an opportunity that they should probably engage cash management services from a bank for a sweep account to maximize interest income if they are not going to use the money in the short term.

    Hope that helps.

  • Reply to

    Page F-16

    by kingfrogcash Mar 18, 2014 6:26 AM
    shinysilvercoin shinysilvercoin Mar 18, 2014 10:15 AM Flag

    So I guess you would rather see Ming's companies borrowing from GURE? Google china's shadow banking system and see if you can educate yourself before posting here kingfrog (EBE). For that matter, take a look at how related companies in the US borrow from each other or sell products to each other. No difference at all.

  • Reply to

    @#$%* Missed the fireworks

    by lastonestanding000 Mar 17, 2014 7:58 PM
    shinysilvercoin shinysilvercoin Mar 17, 2014 8:24 PM Flag

    I'm pleased as well. AH trades look strong - should be a rocket tomorrow morning.

  • Reply to

    Shinysilvercoin

    by lastonestanding000 Mar 9, 2014 3:57 PM
    shinysilvercoin shinysilvercoin Mar 11, 2014 10:40 AM Flag

    I agree with you lastonestanding - we have not yet heard the end of Daying County exploration - this company does not just payout its cash hoard for nothing (we have seen management's conservatism in lack of actual spending on the share repurchase programs). GURE reported $7,034,153 in exploratory drilling costs (per 2011 10-K) and $3,154,400 for a "consultancy fee paid to an unrelated PRC agent for the purpose of searching suitable crude salt fields and bromine properties for acquisition" during the same time period. It would be out of character for this company to walk away from this prospect with over $10MM already spent. If anything, this item lends some credibility to a buyout, merger, or go private transaction - which would forego the honor of being a listed company on an American exchange (which is a big hurdle/opportunity cost for a Chinese company to overcome to enable a go private transaction). Who ultimately will benefit from this successful exploration? Interesting times ahead.

  • Reply to

    Shinysilvercoin

    by lastonestanding000 Mar 9, 2014 3:57 PM
    shinysilvercoin shinysilvercoin Mar 10, 2014 10:33 AM Flag

    Hey lastonestanding000 - I'm still around - not much time lately with busy times at work. Still keeping an eye on Gure though - I like the recent volume pick up. As with so many others here, you won't see me cash out any of my core investment in Gure anywhere below $4 (although my dollar cost average is now below $2) - and believe the stock is worth between $6 to $8/share right now. Summer is coming and Ming's commitment to hold his shares expires - opening possibility for go-private deal before ramping up $220MM investment in Daying County production plant. Just my opinions.

  • shinysilvercoin by shinysilvercoin Feb 4, 2014 8:01 PM Flag

    Relative to other emerging market spec plays, I'm pleased so far that gure's price is holding up, on low volume. No big sell off, no big profit takers, except for that unfilled 58K share limit order at 2.35. Considering the number of shareholders who came in between $1.25 and $2.50, looks like we are holding for the next catalyst...

    If you sold out, north of $2.50, perhaps it's time to look back in, prior to Q4 earnings? Depends where we drift over the next month. I think we have firm support at $1.80, lots of accumulation back there. Perhaps some short interest comes back in, perhaps another big volume squeeze to coincide right before earnings, perhaps Q4 earnings look good, getting us above $4. You know how gure likes to drop new information on us within the 10K (perhaps an update on Daying - or - new chemical line developed - or - new major customer under contract, etc.). Historically, the Q4 call refers to the 10K. I really think that this summer is when things start to happen (Ming Yang's commitment to hold shares expires, bromine market looking up, stock still undervalued well below book, big pile of cash, big future in Daying once proper bribes are paid, etc.). Just my opinions.
    Good Luck to all.

  • Reply to

    Short this weak pop.

    by steelersgirl313 Jan 27, 2014 5:06 PM
    shinysilvercoin shinysilvercoin Jan 27, 2014 5:59 PM Flag

    I welcome the short sellers. Last time we accumulated a lot of short interest, we had some big volume days/scalp trade - which resulted in the average price moving up from $1.80 to $2.50 - without a subsequent move back down to $1.80. Of course, when this message board becomes cluttered with non-supported short seller propaganda and high fives, it is frustrating for us longs. I just smile, knowing how the last big short covering event took place - it's a risk they take. Just as the long investor takes a risk of a low-ball buyout offer or other price sinking events. To me, the fundamentals of GURE are sound - but keep in mind that the market no longer trades on fundamentals - so, in the short run, we are at the mercy of the market makers. Does not have to be trading vs investing - you can actually do both with this stock, but in the long run, I continue to believe this one has good potential to double if not triple from the present price.

GURE
2.11+0.03(+1.44%)Apr 17 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.