Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Chinese salt and chemicals manufacturer Gulf Resources
So what: Today's big move is on the back of strong 2011 financial guidance that the company issued yesterday. At the midpoints of the guidance, the company sees revenue growth of 24% and net income growth of 27%. In addition, the stock was benefitting from the initiation of coverage from Brean Murray, Carret & Co., where analyst Wayne Chung started Gulf Resources with a "buy" rating and set a price target of $10.
Now what: It was a rough week for Gulf Resources last week as the stock dropped after a misstatement from management. It's been an even rougher few months as Gulf Resources' stock has lost close to 40% of its value. As a China-based, reverse-merger company, it seems likely that the stock has been caught in the pressure brought on by companies like Duoyuan Printing
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