Based on the aggregated intelligence of 170,000-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
| Headquarters (Founded) |
Shouguang City, China |
| Market Cap |
$337.05 million |
| Industry |
Specialty chemicals |
| Trailing-12-Month Revenue |
$150.59 million |
| Management |
CEO Xiao Bin Liu (since 2009)
CFO Min Li (since 2006)
|
| Return on Equity (Average, Past 3 Years) |
42.4% |
| Cash/Debt |
$73.4 million / $0 |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 397 members who have rated Gulf Resources believe the stock will outperform the S&P 500 going forward. These bulls include jaymzrex and megisto387.
Late last year, jaymzrex addressed some of the concerns surrounding Gulf Resources:
Consistent high profit margin, consistent growth. BDO auditors lend credibility to the numbers, and when combined with share buyback programs, show management is dedicated to shareholders. Bromine prices are set to increase in the near future, boosting top and bottom line.
Gulf Resources' ultraclean balance sheet and outstanding profitability continue to support its four-star CAPS rating. In fact, Gulf Resources' three-year average return on equity (42.4%) crushes that of U.S.-based bromine plays like Albermarle (NYSE: ALB ) (19.0%) and TETRA Technologies (NYSE: TTI ) (2.0%), as well as giant chemical stocks such as Ashland (NYSE: ASH ) (5.3%), Dow Chemical (NYSE: DOW ) (5.7%), and DuPont (NYSE: DD ) (27.8%).
CAPS member megisto387 sums up the bull case:
The company is trying to expand its already strong foothold in the industry and producing strong earnings to boot. The transparency measures they are taking now will instill investor confidence in this strong growth company, as management is taking an active approach to supporting its shareholders.
What do you think about Gulf Resources, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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