I think Nick is correct and that play has been the CEO's ploy for sometime, but I also think that there was also a major seller. We shall know by the end of the week.
I added 5000 shares at $1.41 and $1.43. My average is still low at $1.3867. I think the stock is under distribution and I am going for broke and will continue to add. Of course, there is always a chance that I am wrong but I am willing to take the risk. So far GURE after FNMA and HAFC was my biggest winner during past three years but if it turns out to be otherwise so be it. LOL.
" I am highly dubious some entity is willing to part with 90,000+ in stock in attempt to hold stock down." Are you a newbie? I may be wrong in this case but it does happen all the time. I would have bought the whole block as you are suggesting but I already hold over 80,000 shares and don't want to commit so much more money to just one stock. If ZX was at this price last year I would have demolished that block.
My statement was about the hypothetical institutional seller and that if there was such a seller he must be done. Of course, this stock is manipulated perhaps by the associates of the CEO related to his buyout offer. The 55,000 block has been there for some time originally at $1.82. He is not selling but checking the price rise and forcing sells below $1.80. All sells at this level incur a loss and all buys book an automatic profit.
I sold on the way down. I agree there is lots of room and that is why I held back 3000 shares. My average was in mid $0.80s.
PART II REPLY CONTINUED
So according to the U.S. government or rather based on the 2010 USGS Report U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2010), the company at that time had "about 20% of China's bromine capacity." But I should warn that this USGS statement is based on an article by Jason Nevader, published on the manipulation platform, Seeking Alpha (08/14/2010), claiming that Gulf Resources was an acquisition target.
However, a statistical table in this report (Table 5) gives the total annual plant capacity of Laizhou Bromine Works in Shandong at 43,000 metric tons at the end of December 2010 and a different table (Table 6) gives the 2010 aggregate production for China at 150,000 metric tons. I can probably add to and update these figures once I get back home. Regardless, whether 20%, 25%, or more of a market share, GURE is a major player in China if we use any of these figures; and also a major producer relative to the aggregate world production. In 2010, the aggregate world production was 450,000 metric tons so according to above figures GURE's production accounts to around 10% of the total world production.
Hello southernred. Well not a joke but a little sarcasms as in the case of CHOP's CEO. I am currently traveling and will not be able to consult my library for the figures on aggregate production which are usually contradictory. We got the National Statistic Bureau of China and their data base; the USGS (U.S. Geological Survey) and to the best of my knowledge six major reports on bromine industry and forecasts published since 2010. The 80% figure which I think covers bromine and salt is the company claim and can be found on their website which proclaims the company as the largest producer in China. But if I recall correctly this claim is highly exaggerated and inaccurate. In a Shandong PR issued on November 22, 2011 and subsequent Form 8 filing the company states:
"In October 2011, the Company engaged Grant Sherman, which after assessment of the Company's plants, machinery and equipment concluded that the Company's annual bromine and crude salt production capacity is 41,547 tones and 861,143 tones, respectively with a total nine bromine production plants."
I think this was at the time when there were phony allegations by the Glaucus Research Group, a sophomoric and dilettante research group whose purpose in research is profiting from stock manipulation published on Seeking Alpha (April 22, 2011) which is also a stock manipulation platform. But if we are to rely on the U.S. sources, the 2010 USGS Report states:
"Since 2007 through mid-2010, Gulf Resources acquired nine bromine operations, increasing its bromine production capacity to 46,300 metric tons per year (t/yr) from 12,000 t/yr. Gulf Resources planned to acquire 7 to 10 more bromine facilities. Although Gulf Resources represented only about 20% of China’s bromine capacity, the company was perhaps the most well-known as a result of high-profile public relations activities
in the United States." CONTINUED
This stock registration was part of a deal under which the registered shares were to be sold to the associates of the management at a huge discount in their effort towards privatization. Then they went to work and brought the price down from over $8.00 to well under $3.00. Those in the know began buying shares at highly depressed prices despite the threat of dilution, but the deal somehow did not go through because of one potential partner withdrawing. The withdrawal of the registered shares alleging that the stock is "undervalued" was to prevent others from getting a foothold. Subsequently, once the registered shares were withdrawn, the stock tanked from above $4.00 to under $2.00. You would have thought that withdrawing shares for sale and preventing dilution would have resulted in a price increase but not in case of GURE and a cheap takeover plan. If the stock was undervalued at above $4.00 then why today with more cash and more profits it is not undervalued below $2.00? If the repurchase program was "to enhance shareholder value" then why not a single share was bought and today the management is totally oblivious to its stock trading at half of its cash value? If the management is planning acquisitions with this cash, then why it hasn't done anything other than repeating its claim for over two years? GURE is not a fake and fabricated company. It is a known major player in the industry and has practically a monopoly position in the bromine market in China with its market share hovering around 80%. Although its production is for domestic consumption, it is one of the top 4 or 5 oligopolies in the world market. It has ample cash and profitable operation with consecutive positive earnings. Yet its shares sell below half of its cash value. All this points in only one direction: swindling the shareholders and trying to get an $8.00 stock for $3.00.
It is not that the business is bad but they like to buy a $8.00 stock for $3.00. Con men never get embarrassed.
Not below cash per share which is guaranteed.
SHANDONG, China, July 20, 2011 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that it has requested the immediate withdrawal of its registration statement on Form S-3, which was declared effective on August 31, 2010 with the Securities and Exchange Commission (the "SEC"). The Company has not sold and/or distributed any of the securities registered in the filing.
"We decided to withdraw our registration statement because we think our share price remains undervalued and do not intend to sell any securities under the registration statement," said Mr. Xiaobin Liu, Chief Executive Officer of Gulf Resources. "To fund our current operations and future growth, we expect to mainly use cash on hand and cash generated from operations, in combination with debt. As of March 31, 2011 we had $87.9 million in cash and we believe our healthy balance sheet can sustain increased leverage."
On July 18, 2011, the stock which the management allegedly considered "undervalued" and gave that as the reason for withdrawing its registration hit a high of $4.16. Nonsense upon nonsense is the circular language of the con men.
From April 18, 2013 PR announcing the share repurchase program:
"Mr. Xiaobin Liu, the Chief Executive Officer of the Company, commented, "The Company's management team, together with its board of directors, believes that the share repurchase program is in the best interest of the Company and its shareholders. Given our solid market leadership position, strong track record of business expansion, and healthy balance sheet, we believe that our stock is deeply undervalued. Our share repurchase program demonstrates the management's commitment to enhance shareholders value. We are confident about the Company's future growth."
Not a single share was bought and I am repeating the following sentence to stress the depth of the con men's nonsense: "Our share repurchase program demonstrates the management's commitment to enhance shareholders value."
Tuesday, February 21, 2012
Going Private News
SHANDONG, China, Feb. 21, 2012 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, is issuing this press release regarding recent market speculation as to the Company's plans with respect to a potential third-party investment in the Company, or a privatization transaction.
There have been recent market rumors about the implications for the Company of an investment letter of intent ("LOI") between Shandong Ocean Bright Stone Industry Fund Management Co., Ltd., a PRC-based investment fund ("Ocean Bright"), and Shandong Haoyuan Industrial Group Co., Ltd. ("SHIG"). SHIG is an entity controlled by our Chairman and is a record owner of approximately 11.9% of our common stock. SHIG, together with the Chairman and his family, owns in the aggregate approximately 38.5% of our common stock.
We have been informed by Chairman Yang that, on February 20, 2012, SHIG did execute an LOI with Ocean Bright regarding a potential investment program in China's bromine exploitation industry, with the objective of consolidating those investments under SHIG and ultimately seeking a stock exchange listing for SHIG in China. We have been told that the LOI is highly preliminary and conditional, being subject to, among other things, due diligence and the commitment of definitive funding for potential PRC bromine investments. The Company is not a party to the LOI, but the Chairman has informed us that SHIG and Ocean Bright are considering the Company as a potential principal component to their strategy of consolidating the bromine industry in China, and, accordingly, as a potential candidate for a privatization in order to satisfy the listing requirements for SHIG in China.
As of this time, the Company has not received from either SHIG or Ocean Bright any formal or informal offer as to any type of investment
From BODs letter of apology to the shareholders about two years ago explaining the reasons for the drop in the market price and their efforts to remedy the situation:
"We continue to possess the highest personal and professional ethics, integrity and values, and are committed to representing the long-term interest of our stockholders."
Two years later with their given reasons and excuses no longer relevant they still repeat the same nonsense. Cro-oks never run out of words to fool and appease the shareholders while they pick their pocket-- the hallmark of a good con man.