Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese bromine producer Gulf Resources (Nasdaq: GFRE) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Gulf Resources' business and see what CAPS investors are saying about the stock right now.
Gulf Resources facts
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Headquarters
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Shouguang City, China
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Market Cap
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$289 million
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Industry
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Diversified metals and mining
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Trailing-12-Month Revenue
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$94.9 million
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Management
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CEO Xiao Liu (since March 2009)
CFO Min Li (since October 2006)
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Return on Capital (Average, Past 2 Years)
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33.9%
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Cash/Debt
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$38 million / $5.7 million
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Other Highly Rated Mining Stocks
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Freeport-McMoRan (NYSE: FCX)
BHP Billiton (NYSE: BHP)
Vale (NYSE: VALE)
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CAPS Members Bullish on GFRE Also Bullish on
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American Oriental Bioengineering (NYSE: AOB)
China Education Alliance (NYSE: CEU)
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CAPS Members Bearish on GFRE Also Bearish on
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Zions Bancorp (Nasdaq: ZION)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92% of the 63 members who have rated Gulf Resources believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars sloofg and bullishbabo, both of whom are ranked in the top 10% of our community.
Three weeks ago, sloofg tapped Gulf Resources as a good bet to keep getting bigger: "Looks to be potentially creating something of a moat, and the introduction of chemical products may provide for growth, or a back-stop against zero to negative growth. Some customer concentration concerns."
In a pitch from three days ago, bullishbabo let the numbers speak for themselves:
First, check out the very nice sales growth:
2006: $31.7M
2007: $54.2M
2008: $87.5M
Next, check out annual earnings:
2006: $0.18
2007: $0.51
2008: $0.90
Without issuing too many shares, equity has grown quite nicely. Book value is below. Check out the 99% book value growth from 2007 to 2008:
2006: $0.38
2007: $1.06
2008: $2.11
This company is highly profitable and growing quickly. With over $38M in cash and only 23.5M in total liabilities, it's very healthy as well.
What do you think about Gulf Resources, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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