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Re: Your Good Bad Ugly.
1. Ugly - is par for the course, Barchenko Jr. has sold before, not a biggie and appeared to be arranged trade as someone put up an ARCA bid to buy in the shares from him. Somewhat encouraging since apparently someone is buying the stock.
2. Bad - not sure if all that is bad. Higher margins is good, the low margin government work is actually a loser and time waster. The non funding of work is a big issue. What happened to Lockheed business? No mention, if not funded - that is BAD.
3. Good - a wish and a prayer. You see glass half full, I see it half empty.
4. The next month & one-half should be ugly as tax selling might take this down, way down once again. Might buy some shares if it gets low enough, but otherwise it seems to be a hold.
The only light I see is that someone has been steadily buying the stock, not supporting it and they must have some kind of plan in mind. A CHANGE IN TOP MANAGEMENT IS WHAT IS NEEDED HERE. With the state of the world & terrorism threats, these guys have done absolutely NOTHING as a company to warrant fundamental investment. I am ******* disgusted with it.
OT: IRA - Lot's of possible scenarios.. check with a qualified CPA. The gist of it is pay later, not now. As I recall the children as beneficiaries combine life expectancy with your Dad and that sets the timetable for his required withdrawals. Upon his death then the kids can continue with the same timetable to withdraw the funds. For example if you had an 18 year expectancy and he died in year 6, then the kids would withdraw over 12 years.
THIS MAY HAVE CHANGED SINCE I LAST LOOKED AT IT.
Real Estate: Buy, Sell, or Hold?
by Shawn Tully
Thursday, November 15, 2007
That's the question homeowners are asking in the midst of the worst real estate slump in decades. Our exclusive calculations can help you figure out what your house will be worth in coming years.
You can't blame America's homeowners for feeling hopelessly confused. From suburban porches and city terraces, they're gawking at a housing world gone mad. Just 18 months ago, folks on a tony Linden Lane or a leafy Boxwood Court were astounded to see the colonial their neighbors bought for $600,000 in 2000 sell for $1.5 million after multiple bids. Now they're just as bewildered to watch the same model across the street go begging for months at $1.1 million without a single offer.
The millions of Americans who believed yesterday's happy talk about housing are now paying the price, from couples who stretched to buy second homes, to true believers who drove the Florida condo craze, to executives who can't take that great new job in Charlotte without suffering a huge loss on the house purchased at the bubble's peak in Sacramento.
Now that the gilded forecasts have proved spectacularly wrong, homeowners don't know what to think about real estate's future. The dizzying rise sure didn't make sense. And the sudden slump doesn't seem any more logical. How can you make reasonable financial plans for the future if you have no idea what your house is worth?
Take a deep breath. We can't tell you what your house would fetch tomorrow. But we can help you through the fog of whipsawing prices and vacillating views to develop a clear picture of what your house will most likely be worth in five years or so. Over long periods housing, like stocks and bonds, follows a set of economic fundamentals. No matter how far prices get unhinged in a speculative craze - and we've just witnessed a blowout - those basic forces eventually regain their grip.
Many factors determine the value of a house. A family would consider the quality of local schools, the number of bedrooms, the size of the yard. Economists assessing a region look at interest rates, employment, and population growth. But over time the most reliable guide to home values is rents.
In most markets people won't lay out much more in monthly costs to own a house or condo than they would to rent a similar property unless they expect a huge profit when they sell. Indeed, speculators chasing quick profits did a lot to inflate the recent bubble.
But once the fervor fades, prices must fall to restore their normal, long-term relationship with rents. Rents exercise a kind of inevitable gravitational pull on prices. The ratio of prices to rents "behaves much like price/earnings ratios for stocks," says Yale economist Robert Shiller. "Like P/Es, price-to-rent ratios are mean-reverting." In other words, while prices soar from time to time, sending the ratio to exceptional heights, sooner or later the relationship is bound to return to its historical average.
So what are rents saying about home values today? To answer that question, Fortune worked with Moody's Economy.com to estimate adjustments needed to get prices and rents back in balance. We'll go into detail below, but the headline is gloomy: According to our calculations, prices in most markets will fall by double digits over the next five years.
Here's how we reached that disturbing conclusion. We started with the median price of existing homes in 54 metropolitan areas, using numbers from the National Association of Realtors. We then compared those prices with the annual rent on similar properties - houses, condos, and apartments with the same number of square feet as the median-priced house in each market - using figures prepared by Property & Portfolio Research, a commercial real estate research firm. That gave us a price/rent ratio for each area. Economy.com then compared the current P/R ratio with its average over the past 15 years and calculated how much it would have to decline to return to its historical norm. The average drop for all the markets we surveyed is 28%.
But that's not the whole story. The adjustment doesn't come exclusively from a fall in prices - rising rents also help close the gap. To complete the picture, Economy.com assembled a forecast of rental growth in each market; the average rise in our 54 markets is a total of 12% over the next five years. So to reach the average correction of 28%, prices need to drop only about 16%.
Of course, that's still a big bite. And in many areas the outlook is far worse. In the major Florida cities, Orlando, Miami, and Tampa, prices need to fall 28% to 34%. It's a similar story in inland California markets such as Sacramento (-26%) and the East Bay (-31%). In East Bay boom towns like Walnut Creek, a four-bedroom house that might have fetched $1.56 million in the spring may go for less than $1.1 million in five years.
In a handful of cities, our formula suggests that prices will actually rise. Home values should increase slightly in Dallas, Indianapolis, Cleveland, and a few other locales the bubble missed. In Detroit houses are so cheap - the median is around $100,000 - that even a shift in the economy from disastrous to mediocre is all that's needed to lift both rents and prices.
You can see the results for 54 areas around the country in this table. We also show the impact of the projected adjustment on a typical high-end house - one that sells for double the local median price - and indicate what that price will likely be five years from now.
We specify how much of the adjustment in each area will come from rent increases, and how much from price declines. Our forecast assumes moderate economic growth and job creation, and fairly stable interest rates. An unexpected boom or severe recession, of course, would change the picture.
One more note about our methodology. The home prices we used are taken from June data. At that point prices in many areas had already declined from their peaks. Since then, of course, we've had the subprime crisis and credit crunch, which have put further pressure on prices. So in many cities and towns, they have already started on the painful path back to rational levels.
To understand why the big price declines are inevitable, it's important to appreciate the giant chasm that opened between prices and rents, and how fast it happened. All through the 1990s the multiple of prices to rents nationwide remained between 14 and 15.
Then prices exploded for reasons that are now highly familiar. The most important was easy money. The 40-year-low interest rates that prevailed from 2003 to 2005, especially the irresistible teaser rates on adjustable loans, brought a flood of investors into the market. Lax lending standards allowed subprime borrowers, people with poor credit histories and erratic employment records, to suddenly afford to buy houses, further stoking demand.
By 2005 the Fed was aggressively raising rates to slake the coals. But the banks and Wall Street kept the party raging until late 2006 by concocting exotic mortgages that held down monthly payments for the first year or two and enabled buyers to keep paying outrageous prices. Then rising defaults forced lenders to scale back on loans to the high-risk borrowers driving the market. In July the subprime meltdown dealt the market a stiff blow by erasing the bargain rates that started the entire boom.
While prices rocketed, rents barely budged. From 2000 to 2006 they rose a total of about 10%, not even keeping pace with inflation. For a while, part - but only part - of the rise in prices relative to rents made sense. The drop in rates genuinely made houses far more affordable for millions of buyers. Between 2000 and early 2005 average mortgage rates, adjusted for inflation, declined from 5.5% to less than 4%
But the tailwind from low rates is now over. The turning point came with the credit crunch this summer, when rates on jumbo loans jumped almost one percentage point. Today average real rates for all mortgages, fixed and adjustable, stand at 4.7% (adjusted for inflation), which is roughly in line with the long-term average. "For a time, higher than normal ratios of prices to rents were justified because of low real mortgage rates," says Mark Zandi, chief economist at Moody's Economy.com. "Today that justification is gone."
The cheap and easy money is gone, but the inflated prices it created are still here. No other factor was as important in driving the price-to-rent ratio to its current, unsustainable heights. From 2000 to 2007 the nationwide P/R jumped from 15 to 24, an increase of 60%. The figure went from 12 to 21 in Tampa, 11 to 26 in Washington, D.C., and 28 to 51 in California's East Bay, an area that includes Oakland and the area east of the city.
Naturally, every market is subject to different dynamics, governed by factors as diverse as local restrictions on building, job growth, and cultural pedigree. But in general cities fall into one of two broad categories when it comes to housing. The first we'll call the "classics," the urban centers that economist Christopher Mayer of Columbia lauds as "superstar cities." They're marquee names like New York, San Francisco, Los Angeles, and Chicago. To be sure, their housing prices have risen sharply. But they've benefited from excellent rental growth in the past, and the trend will continue, buoyed by their cultural cachet, job creation, and appeal to overseas buyers. As a result, steadily advancing rents will mitigate the price declines needed to make housing broadly attractive once again - keeping in mind that people are willing to devote a lot more of their income to shelter in New York City than in Pittsburgh or Cincinnati.
In these classic cities prices will still fall. But in most cases the drops will be relatively modest, a projected 14% in New York, 10% in San Francisco, 5% in Boston, and 4% in Chicago. The decline will also be slow and orderly, chiefly because it's extremely difficult to build new housing in these areas. Sellers will lower prices only grudgingly, keeping the supply of bargains to a minimum.
Manhattan, for example, largely escaped the invasion of speculators. No less than three-quarters of its owner-occupied housing stock consists of cooperative apartments governed by strict boards that ban investors. Nor can buyers choose from a vast array of fresh construction. About 4,000 newly built co-ops and condos have been hitting the Big Apple market annually, says Jonathan Miller of research firm Radar Logic. By contrast, more than 60,000 new homes and condos swamped the Phoenix area last year, according to RL Brown Housing Reports.
Three other classic cities won't fare nearly so well. In Washington, Los Angeles, and Miami prices rose far more than in San Francisco or Chicago, making housing unaffordable for a vast coterie of potential buyers. In Los Angeles it costs less than half as much to rent a house or condo than to own one, according to a study by real estate analyst Lou Taylor of Deutsche Bank. Annual housing expenses, after factoring in all tax savings, now absorb 34% of the average family's income in Los Angeles, twice the figure in 2000.
Miami is notorious for its skyline of unsold condos. What's less appreciated is that a large number of them - 60,000 units either completed or under construction in the Miami area - will be transformed into rental units. "That will prove a big drag in rental growth in the future," says Lewis Goodkin, an analyst who works with developers and lenders. Result: Price declines will bear the brunt of the correction in Miami.
Along with the classics, there is a second group of cities that we'll call the "boom towns." Among them are well-known disaster areas such as Las Vegas and Phoenix, and inland portions of California, notably the East Bay, the Sacramento region, and the Inland Empire, the sprawling suburbs east of Los Angeles, as well as Florida cities like Orlando and Tampa.
The overbuilt zone is characterized by rapid population growth, mile upon mile of new subdivisions and communities, and ample land for expansion. In the past the common wisdom held that despite all the open land, California was practically immune to overbuilding. The idea was that it was far too expensive and time consuming to transform vast swaths of raw acreage into building lots. The lesson of the bubble is that when prices climb high enough, builders - if it's humanly possible - will find a way to flood the market with new homes until the glut proves its own undoing.
It's in the boom towns that the correction will be both fastest and deepest. One reason is that the Southwest and California, along with Florida, posted the steepest rises in price. At the peak almost 40% of the buyers in places such as Sacramento, the East Bay, and Phoenix were either investors or families armed with subprime mortgages. "When the investors disappeared, so did about 20% of the demand in California and other hot markets," says Robert Toll, CEO of homebuilder Toll Brothers (TOL).
Now investors are throwing their unoccupied homes and condos on the market. To make matters worse, developers kept putting up houses at a breakneck pace well into 2006. "We were all building to investor demand that had disappeared," admits Toll. As a result the housing industry faces an enormous overhang of unsold, unoccupied homes - a total of 2.6 million nationwide. In a normal market the number would be about 1.6 million, and most of those would be homes that the owners recently left because of moves for a new job or retirement.
And they would be expected to sell quickly without deep price cuts. Today, though, many of the new vacant homes for sale are in the hands of builders, older homes that speculators are trying to dump, and foreclosed properties that banks are desperate to shed.
In California builders alone have 40,000 vacant houses and condos for sale. "We've never seen an inventory overhang that big in California," says Mike Castleman, CEO of Metro-study, a firm that monitors builders' projects nationwide. "The builders are paying full freight on those houses in interest costs to the bank and taxes. They've got to move that inventory for whatever price they get."
In San Bernardino County, about 60 miles east of Los Angeles in the Inland Empire, Kent Phillips, president of Storm Western Development, is selling houses for $330,000 that last year went for $400,000. "It's dreadful," says Phillips. "Last year we were selling four houses a month. Now it's one a month. The end came just like turning off a water spigot." Despite the steep discounts, Phillips is still holding six houses that haven't sold in a 16-home development he completed in January.
But Phillips sees an opening to revive the stricken business: plunging construction costs. He says that prices of finished lots, equipped with roads and utilities, have fallen from around $135,000 to $75,000. The cost of construction has gone down around 35%, from $85 to $54 per square foot. "Developers can now sell their houses for at least 20% less than a year ago and still make decent margins," says Phillips.
It's a similar story in California's Central Valley. Paul Roman, vice president of operations for the Empire Cos., a land development and construction firm, is building a new community in the rural town of Tehachapi. His edge: prices ranging from $230,000 to $280,000 for three-bedroom stucco homes, between $80,000 and $100,000 lower than the prices for similar houses at the peak. "The play is making the project affordable," says Roman. "A year ago, if you asked about cost, the subcontractors would hang up on you. Now they're willing to do the job at cost just to keep their employees busy."
The combination of steep discounts to move inventory and a stream of new communities built at a much lower cost will keep prices far below their peak levels in the boom towns. And they'll keep falling until builders work off the massive inventories.
The tumbling prices of new homes, in turn, will put enormous pressure on the far bigger existing-home market, already under stress from two desperate groups of sellers, investors and banks. Hence, the adjustment needed to bring the ratio of prices to rents into alignment will happen far faster than in most housing downturns. "In the most vulnerable places in California and Florida, it's highly possible that most of the correction will happen by the end of 2008," says Zandi.
There's one more factor that will prevent housing prices from recovering as quickly as they might have: the gargantuan rise in property taxes. In many affluent urban and suburban markets, property taxes have doubled since 2000. That's because they're based largely on the assessed value of homes for tax purposes, and those assessments are based on market value.
As housing prices doubled in places like Westchester County, N.Y., and Fairfax County, Va., property taxes soared. "My taxes went from around $2,800 a year to $5,600," says John Irons, a Fairfax resident who works as a commercial real estate broker at Long & Foster Realtors. "If you raise taxes on a commercial building, its value falls. The same is true for housing."
In California tax increases are capped until an owner sells the house. Then the new buyer is faced with a whopping bill. "Taxes on a $1.8 million house in my neighborhood are $23,000," says Phillips, "and that isn't even a fancy house." Nationwide the numbers are big.
Property taxes on houses and condos total roughly $200 billion a year - about half as much as mortgage interest payments - and they have been rising by 8% a year, more than double the rate of inflation. It's a good bet property taxes won't go up nearly as fast in the future. But they're unlikely to go down either. So homeowners face a burden they didn't have when the boom started. And one that won't end when it goes away.
Reporter associates Doris Burke, Telis Demos, Julie Schlosser, Christopher Tkaczyk and Jia Lynn Yang contributed to this article.
Greenspan - 1
Deathtotaxes - 0
It took me 10 days to read the first half of Greenspan's new book. Twenty minutes to read the second half.
Boring. I finally realized I did not care what he had to say.
Back to Murder, mystery & mayhem.
/C O R R E C T I O N - Gulf Resources, Inc./
(I caught that mistake right away - someone needs to proof these things)
In the news release, " Gulf Resources, Inc. Announces Third Quarter 2007 Financial Results ", issued on Monday, Nov. 12, by Gulf Resources, Inc./ (OTC Bulletin Board: GUFR - News) over Xinhua PR Newswire, an incorrect paragraph was included in the release.
We are advised by the company that the last paragraph should read:
Guidance
Management is currently revising its guidance to incorporate the recent asset purchases and further integration of previously completed transactions. Management currently anticipates revenues of approximately $54 million, representing an increase of over 200 percent from the $17.8 million reported during calendar 2006. Specifically, management expects that its core bromine business "SCHC" and specialty chemical business "SYCI" will contribute approximately $38 million and $16 million in revenues respectively. Net income is expected to increase approximately 980 percent to at least $13 million from the $1.2 million reported in 2006, which included a $5.3 million non-cash equity compensation charge. Previously issued guidance for revenue and net income was $48 million and $11.6 million respectively.
These estimates do not include any potential future acquisitions or non- cash charges related to the amortization of goodwill from previously completed acquisitions.
Rather than:
Guidance
Since the recently completed asset purchases will only be contributing to our results for one quarter, the incremental impact on revenue and earnings will be minimal. Thus the Company is reaffirming its previously issued guidance and expects very moderate upside as of result of the integration of these 2 new bromine production facilities. Previously issued guidance includes 2007 revenues of $48 million, representing an increase of 170 percent from the $17.8 million reported during calendar 2006. Specifically, management expects that its core bromine business "SCHC" and specialty chemical business "SYCI" will contribute approximately $32 million and $16 million in revenues respectively. Net income is expected to increase approximately 867 percent to $11.6 million from the $1.2 million reported in 2006, which included a $5.3 million non-cash equity compensation charge.
These estimates do not include any potential future acquisitions or non- cash charges related to the amortization of goodwill from previously completed acquisitions.
For more information, please contact:
Ethan Chuang, Gulf Resources
Tel: +1-714-858-1147
Email: Ethan@gulfresourcesco.com
Investors:
Matt Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
------
Gulf Resources, Inc. Announces Third Quarter 2007 Financial Results
- Third Quarter Net Revenues Increase 81% to $16.4 million- Third Quarter Net Income Increases 104% to $3.9 million with $0.08 in EPS- YTD Revenues of $38.9 million, $9.6 million in net income and $0.20 in EPS- Company Recently Completes Two Additional Bromine Asset Purchases
NEW YORK and SHANDONG, China, Nov. 12 /Xinhua-PRNewswire-FirstCall/ -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GUFR - News), which operates through its wholly-owned subsidiaries Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical Industry Company Limited ("SYCI"), today announced financial results for its third quarter, which ended September 30, 2007.
Net Revenues for the third quarter of 2007 increased 81.3 percent to $16.4 million compared to $9.1 million for the third quarter of 2006. The increase in net revenues was attributable to strong growth in sales of bromine and crude salt, which increased 132.1 percent from $4.7 million in the third quarter of 2006 to $10.9 million in the third quarter 2007 primarily as a result of the completion of 280 new bromine wells in December, 2006, the addition of three new customers, and the bromine asset purchases completed in April and July of 2007. 5,662 metric tons of bromine and 16,000 metric tons of crude salt were sold during the quarter at average prices of $1910 and $11.30 per metric ton, respectively. Another factor contributing to the increase in revenues was a 26.9 percent increase in chemical product sales to $5.5 million, compared to $4.4 million for the third quarter of 2006. Such increase resulted from equipment upgrades made during December 2006, the introduction of new products and the addition of new customers.
Cost of revenues for the third quarter of 2007 was $9.6 million, yielding a gross profit of $6.9 million and gross margins of 41.8 percent, compared to $3.0 million in gross profits and gross margins of 33.0 percent recorded during the third quarter of 2006. The favorable variation between the increase in revenues and costs associated with revenues resulted from increased bromine production capacity, economies of scale, tighter control of direct costs and indirect costs, and improved inventory control.
Operating income for the third quarter of 2007 totaled $6.2 million, representing a 112.8 percent increase from the $2.9 million reported for the third quarter of 2006 and resulted from growth in both product lines and a lower rate of increase in cost of net sales. Operating margins were 37.7 percent and 32.1 percent for the third quarter of 2007 and 2006, respectively. For the third quarter of 2007, income from operations in the bromine and crude salt division and from the chemical products division was $4.6 million and $1.9 million, respectively, representing a 142.8 and 94.5 percent increase, respectively, compared to the third quarter of 2006.
For the third quarter of 2007, net income was $3.9 million, an increase of 104.2 percent from the $1.9 million for the third quarter of 2006, while earnings per share increased to $0.08 per share for the third quarter of 2007 (based on 49.8 million diluted weighted average number of shares) compared to $0.04 per share for the third quarter of 2006 (based on 43.2 million diluted weighted average number of shares). The Company incurred taxes of $2.2 million and $1.0 million for the third quarter of 2007 and 2006, respectively, which equated to an effective tax rate of 35.8 percent and 33.5 percent, respectively.
"The third quarter showed continued momentum in all our product lines as we brought additional bromine and crude salt production capacity online through our recent asset purchases and made further improvements in existing facilities," said Mr. Ming Yang, CEO of Gulf Resources. "Additionally, our wholly-owned SYCI subsidiary made two significant steps during the quarter. The first related to a partnership with East China University to build a Co-Op Research andDevelopment Center for the purpose of creating new refined bromide compounds and end products. To date, the Center has tested two compounds that carry the names 3.4.5- Trimethoxybenzaldehyde (T.M.B.) and Mbromoanisole, which are utilized as raw materials by pharmaceutical manufacturers to produce various antibiotics. We estimate that global demand for T.M.B.'s is 5,000 tons annually while current supply is 3,500 to 4,000 tons. The second related to a Letter of Intent with Southwest Synthetic Pharmaceutical, which contemplates SYCI providing its 3.4.5- Trimethoxybenzaldehyde (T.M.B.) bromide based compound for Southwest's line of antibiotics. Currently, Southwest purchases approximately 500 tons, or $7.5 million worth of T.M.B.'s annually."
Nine-Month Results
For the nine months ended September 30, 2007, net revenues increased approximately 59.5 percent to $38.9 million compared to the nine-month period ended September 30, 2006. The growth in revenues reflects growth at both divisions coupled with additional bromine asset purchases. Gross profit was $16 million for the first nine months of 2007, representing an increase of $7.5 million, or nearly 90 percent from the first nine months of 2006. Gross margins were 41 percent for the first nine months of 2007 compared to 35 percent for the first nine months of 2006. Overall, income from operations was $14.8 million for the first nine months of 2007, representing an increase of 81 percent over the first nine months of 2006. Operating margins were 38.1 percent for the first nine months of 2007 compared to 33.6 percent for the first nine months of 2006. More specifically, income from operations from the bromine and crude salt division was $10.1 million, an increase of 100.7 percent, while income from operations from the chemical products division increased 72.1 percent to $5.4 million, both compared to the first nine months of 2006.
Net income was $9.6 million for nine months ended September 30, 2007, an increase of $4.2 million, or approximately 76.4%, from the same period of 2006. This equated to earnings of $0.20 per share for the first nine months of 2007 compared to $0.13 per share for the first nine months of 2006 based on 47.8 million and 43.2 million diluted weighted shares outstanding, respectively.
Balance Sheet and Cash Flow discussion
The Company had $11.4 million in cash and equivalents and $6 million in notes payable and debt on September 30, 2007, while maintaining a current ratio of 1.64 to 1. For the first nine months of 2007, the Company generated $11.8 million in cash flow from operations, the main variance from net income relating to a decrease in accounts receivable.
Mr. Yang further stated that "taking into account the two most recently announced asset purchases, in the Shouguang City Houxing Area and the Shouguang City Renjia Area, SCHC currently maintains approximately 26,700 metric tons of annual bromine production capacity and its facility is operating at approximately 70 percent of capacity utilization. We currently maintain 50-year leaseholds for land which contains approximately 1.7 million metric tons of proven and probable reserves and plan to pursue additional bromine asset purchases to further augment our business and asset base."
"We would also like to welcome Mr. Biagio Vignolo and Mr. Richard Khaleel who recently joined as independent board and audit committee members. These gentleman bring specific skill sets in the areas of tax, finance, M&A, marketing, and corporate governance, which we believe will be very beneficial to our Company as we further refine and expand our business plan, growth strategy and evolution as a public company," Mr. Yang concluded.
Guidance
Since the recently completed asset purchases will only be contributing to our results for one quarter, the incremental impact on revenue and earnings will be minimal. Thus the Company is reaffirming its previously issued guidance and expects very moderate upside as of result of the integration of these 2 new bromine production facilities. Previously issued guidance includes 2007 revenues of $48 million, representing an increase of 170 percent from the $17.8 million reported during calendar 2006. Specifically, management expects that its core bromine business "SCHC" and specialty chemical business "SYCI" will contribute approximately $32 million and $16 million in revenues respectively. Net income is expected to increase approximately 867 percent to $11.6 million from the $1.2 million reported in 2006, which included a $5.3 million non-cash equity compensation charge.
These estimates do not include any potential future acquisitions or non- cash charges related to the amortization of goodwill from previously completed acquisitions.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned subsidiaries: SCHC, which is engaged in manufacturing and trading Bromine, which is used to manufacture a wide variety of compounds utilized in industry and agriculture, and Crude Salt in China, and SYCI, which manufactures chemical products utilized in oil & gas field explorations and as papermaking chemical agents. For more information, please visit http://www.gulfresourcesco.com .
Safe Harbor Statement:
Certain statements in this news release may contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
GULF RESOURCES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2007 AND DECEMBER 31, 2006
September 30, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $11,367,729 $5,692,608
Accounts receivable 3,993,770 1,403,564
Inventories 363,748 470,615
Prepaid expenses 384,619 --
Prepayment and deposit 355,288 --
Due from related party -- 555,464
Prepaid land lease 12,940 12,436
Income tax receivable 296,488 1,111,154
16,774,582 9,245,841
PROPERTY, PLANT AND EQUIPMENT, Net 15,908,392 4,462,407
DUE FROM RELATED PARTY -- 641,000
PREPAID LAND LEASE, Net of current
portion 620,688 605,820
TOTAL ASSETS $33,303,662 $14,955,068
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses 2,934,064 6,225,818
Loan payable 6,003,000 --
Due to related party 32,230 15,384
Taxes payable 1,273,740 481,405
TOTAL LIABILITIES 10,243,034 6,722,607
STOCKHOLDERS' EQUITY
COMMON STOCK; $0.001 par value;
70,000,000 shares authorized;
49,834,421 and 43,205,440
shares issued and outstanding 49,834 43,205
ADDITIONAL PAID-IN CAPITAL 11,827,562 2,668,817
RETAINED EARNINGS - UNAPPROPRIATED 8,399,687 3,535,252
RETAINED EARNINGS - APPROPRIATED
Statutory Common Reserve Fund 1,616,796 1,077,864
Statutory Public Welfare Fund -- 538,932
CUMULATIVE TRANSLATION ADJUSTMENT 1,166,749 368,391
TOTAL STOCKHOLDERS' EQUITY 23,060,628 8,232,461
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $33,303,662 $14,955,068
GULF RESOURCES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
REVENUE
Net sales $16,276,184 $9,054,281 $38,470,184 24,373,912
Maintenance service
income 142,427 -- 401,705 --
16,418,611 9,054,281 38,871,889 24,373,912
OPERATING EXPENSES
Cost of net revenue 9,558,866 6,066,498 22,854,530 15,898,168
Research and development
costs 143,269 -- 143,269 --
General and
administrative expenses 530,486 81,358 1,059,683 293,441
10,232,621 6,147,856 24,057,482 16,191,609
INCOME FROM OPERATIONS 6,185,990 2,906,425 14,814,407 8,182,303
OTHER INCOME (EXPENSES)
Interest expense (49,516) -- (73,598) --
Interest income 10,974 673 26,184 1,214
INCOME BEFORE INCOME
TAXES 6,147,448 2,907,098 14,766,993 8,183,517
INCOME TAXES - current 2,201,107 974,550 5,162,958 2,738,330
NET INCOME $3,946,341 $1,932,548 $9,604,035 $5,445,187
BASIC AND DILUTED
EARNINGS PER SHARE $0.08 $0.04 $0.20 $0.13
BASIC AND DILUTED
WEIGHTED AVERAGE NUMBER
OF SHARES 49,834,421 43,205,440 47,842,071 43,205,440
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
NET INCOME $3,946,341 $1,932,548 $9,604,035 $5,445,187
OTHER
COMPREHENSIVE
INCOME
Foreign currency
translation
adjustment 310,528 168,964 798,358 265,030
COMPREHENSIVE
INCOME $4,256,869 $2,101,512 $10,402,393 $5,710,217
For more information, please contact:
Ethan Chuang, Gulf Resources
Tel: +1-714-858-1147
Email: Ethan@gulfresourcesco.com
Investors:
Matt Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
Gulf Resources, Inc. Announces Third Quarter 2007 Financial Results
- Third Quarter Net Revenues Increase 81% to $16.4 million- Third Quarter Net Income Increases 104% to $3.9 million with $0.08 in EPS- YTD Revenues of $38.9 million, $9.6 million in net income and $0.20 in EPS- Company Recently Completes Two Additional Bromine Asset Purchases
NEW YORK and SHANDONG, China, Nov. 12 /Xinhua-PRNewswire-FirstCall/ -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GUFR - News), which operates through its wholly-owned subsidiaries Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical Industry Company Limited ("SYCI"), today announced financial results for its third quarter, which ended September 30, 2007.
Net Revenues for the third quarter of 2007 increased 81.3 percent to $16.4 million compared to $9.1 million for the third quarter of 2006. The increase in net revenues was attributable to strong growth in sales of bromine and crude salt, which increased 132.1 percent from $4.7 million in the third quarter of 2006 to $10.9 million in the third quarter 2007 primarily as a result of the completion of 280 new bromine wells in December, 2006, the addition of three new customers, and the bromine asset purchases completed in April and July of 2007. 5,662 metric tons of bromine and 16,000 metric tons of crude salt were sold during the quarter at average prices of $1910 and $11.30 per metric ton, respectively. Another factor contributing to the increase in revenues was a 26.9 percent increase in chemical product sales to $5.5 million, compared to $4.4 million for the third quarter of 2006. Such increase resulted from equipment upgrades made during December 2006, the introduction of new products and the addition of new customers.
Cost of revenues for the third quarter of 2007 was $9.6 million, yielding a gross profit of $6.9 million and gross margins of 41.8 percent, compared to $3.0 million in gross profits and gross margins of 33.0 percent recorded during the third quarter of 2006. The favorable variation between the increase in revenues and costs associated with revenues resulted from increased bromine production capacity, economies of scale, tighter control of direct costs and indirect costs, and improved inventory control.
Operating income for the third quarter of 2007 totaled $6.2 million, representing a 112.8 percent increase from the $2.9 million reported for the third quarter of 2006 and resulted from growth in both product lines and a lower rate of increase in cost of net sales. Operating margins were 37.7 percent and 32.1 percent for the third quarter of 2007 and 2006, respectively. For the third quarter of 2007, income from operations in the bromine and crude salt division and from the chemical products division was $4.6 million and $1.9 million, respectively, representing a 142.8 and 94.5 percent increase, respectively, compared to the third quarter of 2006.
For the third quarter of 2007, net income was $3.9 million, an increase of 104.2 percent from the $1.9 million for the third quarter of 2006, while earnings per share increased to $0.08 per share for the third quarter of 2007 (based on 49.8 million diluted weighted average number of shares) compared to $0.04 per share for the third quarter of 2006 (based on 43.2 million diluted weighted average number of shares). The Company incurred taxes of $2.2 million and $1.0 million for the third quarter of 2007 and 2006, respectively, which equated to an effective tax rate of 35.8 percent and 33.5 percent, respectively.
"The third quarter showed continued momentum in all our product lines as we brought additional bromine and crude salt production capacity online through our recent asset purchases and made further improvements in existing facilities," said Mr. Ming Yang, CEO of Gulf Resources. "Additionally, our wholly-owned SYCI subsidiary made two significant steps during the quarter. The first related to a partnership with East China University to build a Co-Op Research andDevelopment Center for the purpose of creating new refined bromide compounds and end products. To date, the Center has tested two compounds that carry the names 3.4.5- Trimethoxybenzaldehyde (T.M.B.) and Mbromoanisole, which are utilized as raw materials by pharmaceutical manufacturers to produce various antibiotics. We estimate that global demand for T.M.B.'s is 5,000 tons annually while current supply is 3,500 to 4,000 tons. The second related to a Letter of Intent with Southwest Synthetic Pharmaceutical, which contemplates SYCI providing its 3.4.5- Trimethoxybenzaldehyde (T.M.B.) bromide based compound for Southwest's line of antibiotics. Currently, Southwest purchases approximately 500 tons, or $7.5 million worth of T.M.B.'s annually."
Nine-Month Results
For the nine months ended September 30, 2007, net revenues increased approximately 59.5 percent to $38.9 million compared to the nine-month period ended September 30, 2006. The growth in revenues reflects growth at both divisions coupled with additional bromine asset purchases. Gross profit was $16 million for the first nine months of 2007, representing an increase of $7.5 million, or nearly 90 percent from the first nine months of 2006. Gross margins were 41 percent for the first nine months of 2007 compared to 35 percent for the first nine months of 2006. Overall, income from operations was $14.8 million for the first nine months of 2007, representing an increase of 81 percent over the first nine months of 2006. Operating margins were 38.1 percent for the first nine months of 2007 compared to 33.6 percent for the first nine months of 2006. More specifically, income from operations from the bromine and crude salt division was $10.1 million, an increase of 100.7 percent, while income from operations from the chemical products division increased 72.1 percent to $5.4 million, both compared to the first nine months of 2006.
Net income was $9.6 million for nine months ended September 30, 2007, an increase of $4.2 million, or approximately 76.4%, from the same period of 2006. This equated to earnings of $0.20 per share for the first nine months of 2007 compared to $0.13 per share for the first nine months of 2006 based on 47.8 million and 43.2 million diluted weighted shares outstanding, respectively.
Balance Sheet and Cash Flow discussion
The Company had $11.4 million in cash and equivalents and $6 million in notes payable and debt on September 30, 2007, while maintaining a current ratio of 1.64 to 1. For the first nine months of 2007, the Company generated $11.8 million in cash flow from operations, the main variance from net income relating to a decrease in accounts receivable.
Mr. Yang further stated that "taking into account the two most recently announced asset purchases, in the Shouguang City Houxing Area and the Shouguang City Renjia Area, SCHC currently maintains approximately 26,700 metric tons of annual bromine production capacity and its facility is operating at approximately 70 percent of capacity utilization. We currently maintain 50-year leaseholds for land which contains approximately 1.7 million metric tons of proven and probable reserves and plan to pursue additional bromine asset purchases to further augment our business and asset base."
"We would also like to welcome Mr. Biagio Vignolo and Mr. Richard Khaleel who recently joined as independent board and audit committee members. These gentleman bring specific skill sets in the areas of tax, finance, M&A, marketing, and corporate governance, which we believe will be very beneficial to our Company as we further refine and expand our business plan, growth strategy and evolution as a public company," Mr. Yang concluded.
Guidance
Management is currently revising its guidance to incorporate the recent asset purchases and further integration of previously completed transactions. Management currently anticipates revenues of approximately $54 million, representing an increase of over 200 percent from the $17.8 million reported during calendar 2006. Specifically, management expects that its core bromine business "SCHC" and specialty chemical business "SYCI" will contribute approximately $38 million and $16 million in revenues respectively. Net income is expected to increase approximately 980 percent to at least $13 million from the $1.2 million reported in 2006, which included a $5.3 million non-cash equity compensation charge. Previously issued guidance for revenue and net income was $48 million and $11.6 million respectively.
These estimates do not include any potential future acquisitions or non- cash charges related to the amortization of goodwill from previously completed acquisitions.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned subsidiaries: SCHC, which is engaged in manufacturing and trading Bromine, which is used to manufacture a wide variety of compounds utilized in industry and agriculture, and Crude Salt in China, and SYCI, which manufactures chemical products utilized in oil & gas field explorations and as papermaking chemical agents. For more information, please visit http://www.gulfresourcesco.com .
Safe Harbor Statement:
Certain statements in this news release may contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
GULF RESOURCES, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2007 AND DECEMBER 31, 2006
September 30, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $11,367,729 $5,692,608
Accounts receivable 3,993,770 1,403,564
Inventories 363,748 470,615
Prepaid expenses 384,619 --
Prepayment and deposit 355,288 --
Due from related party -- 555,464
Prepaid land lease 12,940 12,436
Income tax receivable 296,488 1,111,154
16,774,582 9,245,841
PROPERTY, PLANT AND EQUIPMENT, Net 15,908,392 4,462,407
DUE FROM RELATED PARTY -- 641,000
PREPAID LAND LEASE, Net of current
portion 620,688 605,820
TOTAL ASSETS $33,303,662 $14,955,068
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses 2,934,064 6,225,818
Loan payable 6,003,000 --
Due to related party 32,230 15,384
Taxes payable 1,273,740 481,405
TOTAL LIABILITIES 10,243,034 6,722,607
STOCKHOLDERS' EQUITY
COMMON STOCK; $0.001 par value;
70,000,000 shares authorized;
49,834,421 and 43,205,440
shares issued and outstanding 49,834 43,205
ADDITIONAL PAID-IN CAPITAL 11,827,562 2,668,817
RETAINED EARNINGS - UNAPPROPRIATED 8,399,687 3,535,252
RETAINED EARNINGS - APPROPRIATED
Statutory Common Reserve Fund 1,616,796 1,077,864
Statutory Public Welfare Fund -- 538,932
CUMULATIVE TRANSLATION ADJUSTMENT 1,166,749 368,391
TOTAL STOCKHOLDERS' EQUITY 23,060,628 8,232,461
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $33,303,662 $14,955,068
GULF RESOURCES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
REVENUE
Net sales $16,276,184 $9,054,281 $38,470,184 24,373,912
Maintenance service
income 142,427 -- 401,705 --
16,418,611 9,054,281 38,871,889 24,373,912
OPERATING EXPENSES
Cost of net revenue 9,558,866 6,066,498 22,854,530 15,898,168
Research and development
costs 143,269 -- 143,269 --
General and
administrative expenses 530,486 81,358 1,059,683 293,441
10,232,621 6,147,856 24,057,482 16,191,609
INCOME FROM OPERATIONS 6,185,990 2,906,425 14,814,407 8,182,303
OTHER INCOME (EXPENSES)
Interest expense (49,516) -- (73,598) --
Interest income 10,974 673 26,184 1,214
INCOME BEFORE INCOME
TAXES 6,147,448 2,907,098 14,766,993 8,183,517
INCOME TAXES - current 2,201,107 974,550 5,162,958 2,738,330
NET INCOME $3,946,341 $1,932,548 $9,604,035 $5,445,187
BASIC AND DILUTED
EARNINGS PER SHARE $0.08 $0.04 $0.20 $0.13
BASIC AND DILUTED
WEIGHTED AVERAGE NUMBER
OF SHARES 49,834,421 43,205,440 47,842,071 43,205,440
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
NET INCOME $3,946,341 $1,932,548 $9,604,035 $5,445,187
OTHER
COMPREHENSIVE
INCOME
Foreign currency
translation
adjustment 310,528 168,964 798,358 265,030
COMPREHENSIVE
INCOME $4,256,869 $2,101,512 $10,402,393 $5,710,217
For more information, please contact:
Ethan Chuang, Gulf Resources
Tel: +1-714-858-1147
Email: Ethan@gulfresourcesco.com
Investors:
Matt Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
Please access the attached hyperlink for an important electronic communications disclaimer:
http://www.haydenir.com/email_disclaimer.html
ETFC: How to move your account.
Best way is having all settled funds = cash and cut a check.
or
Set up new account elsewhere and process a transfer (ACAT) with them. Provide a copy of your most recent ETURD statement. You want to have all settled trades in your account and no non negotiable non transferable securities. If you have those, do a partial transfer. Also mutual funds must be of the kind that the receiving broker will accept.
Pretty sure ETURD will be inundated with ACATs, I would expect delay's. Could take a few days to a few weeks.
btw - I am pretty sure that SEC/FINRA/SIPC and other involved regulators would put together a deal to get someone to take ETURDS accounts if necessary and make it a seamless transfer. I was on the losing end of a brokerage failure and as a brokerage firm we ate a million plus loss! No SIPC for brokers accounts.
OT ETFC: The kitchen sink? That is like asking the captain of the Titanic for free tickets on the next cruise if you forgo the life jacket and promise to wait with him for help.
Brokerage transfers happen via ACAT. Usually takes 4 - 8 days, except for non DTC eligible securities and other oddball items.
edit- some firms will quote longer timeframes to cover themselves.
Actually politically motivated posts should not exist on this board. I assume most posters here are ADULTS and should have the sense to follow the rules of the board.
It is incumbent upon the board posters to stay on topic - VMC stocks, not politics, not ego feeding, not posting how your non earners have gone up day after day.
Give Lentinman's itchy finger a rest and all of us a break.
SEVT - looks like they are trying to get shareholders to dump the stock.... and do a reverse merger?
Worth a shot, with someone's money, not mine. LOL
Bob
What are your thoughts on Uranium Participation Corporation U.TSX ? Would this be a simple way to play in the Uranium minefield ?
thks
dtt
KIK APEI: Can you borrow the stock to short? Never tried to short an IPO as a retail customer, would be curious to know if you can. Obviously as an underwriter we used to short the crap out of some IPO's.
MDF: Somewhat surprised by MDF's strength at the moment. I picked an arbitrary buy back price awhile ago and it always misses by a few pennies. Still think the stock sees more pain before it gets much better.
R59: OTCBB sizes
Price (Bid or Offer) Minimum Quote Size
0–.501 . . . . 5,000
.51–1.00 . . . . 2,500
1.01–10.00 . . . 500
10.01–100.00 . . . 200
100.01–200.00 . . . 100
200.01–500.00 . . . 25
500.01–1000.00 . . . 10
1000.01–2500.00. . . 5
2500.01 + . . . . 1
Len,
Obviously homebuilders like to do the incentives, throw in the free upgrades, a couple thousand towards closing costs, buy down the interest rate on the mortgages.... apparently that is not enough to get these houses sold. So they have to do the 25% off one weekend only sale, because the following weekend we will only be able to give you 28.5% off.
It all points out one very important fact when buying a home. . . never buy in a new unfinished neighborhood where the developer still owns unsold homes and a lot of vacant lots. Also people should be wary of buying across from vacant pieces of land and other unknowns. Buying in established neighborhoods with GREAT schools is an important key to keeping the bottom from falling out, even in a bad housing market.
dtt
ps- my wife just started her real estate career. great timing??
Gilead, when they say "reasonably available" they don't mean that the bid/offer is reasonable, they mean that the information is easily obtainable.
In the old days the "Three bid rule" was enforced strictly. In the order room you would have to make several phone calls to get the market from at least three market makers and note the prices on the order ticket. That showed that you were attempting to get the best price for the customer. Now with the OTCBB system, while the rule is still in place, they accept that as long as there are more than two market makers showing bids & offers, you are satisfying the rule. (This may have changed since last I checked) Sometimes you could not get all the info you needed to complete the process, therefor "reasonably available" came into play. Technically speaking the OTCBB is still a telephone call needed to complete the order process, even though most MM's are hooked electronically for the process.
At the end of each month I often had to price 30-40 OTC securities for the financial reports by this method. It was not an easy job to get those prices. Now it is all available online.
The inside spread is solely dependent upon the highest bid & lowest offer available. It can be subject to manipulation, I doubt that has changed since I left the biz.
BTW - if all of us investors used ARCA or one of the other ECN's, the MM's would go away and the process would be much more transparent.
25% off this weekend @ Ryland
http://www.ryland.com/
Gilead,
NO, your order most likely made it to a MM. Mikes order may have made it to a MM, not always the same one or it could have been crossed like 10Bagger mentioned away from the MM's.
With Fidelity for example you could easily see where the order went, with ATURD I don't recall seeing that info.
But ATURD is always as far as I know executing customer orders on an agency basis since they don't make markets. Look on your confirmations for capacity code, if it says A it is Agency.
Gilead, ATURD is acting as an agent. They are not doing the trade as a principal broker. They are not the "Member" you are seeing in the rules quoted. NITE or some other MM is the "Member".
SEVEN. . .
7 years of Bush and the congress finally pushed through a Veto of the idiot.
Does not say much for our leaders or our country.
and in other news:
In a Surprise, Pat Robertson Backs Giuliani - they are really scared of Hillary if Robertson is endorsing thrice married, social lib R.G.
Brinker: Although I current lack the will to buy the market, this is exactly Brinker's buy point for adding $$$ into the market. Mid 1400's on the S&P. I would feel more comfortable with the mid 1200's.
GUFR: Maxim Group is the only firm with coverage on GUFR. Anyone have access to their research??
The IR firm & the company have disavowed the report in its entirety and the curiosity is killing me. They won't discuss it at all.
Len: Is it ok if I submit my VMC Pick Six Lotto 4 (PSL4) today? I realize I am a bit late, but can you just track it for me.
OTCBB is NOT a retail bid & offer marketplace. It is for listing dealers bids & offers. The fact that they show anyones order at any time is completely up to them. Even if they buy or sell stock based on your order, it does not mean they have to give you a fill.
If your order gets in the way of something they are trying to do, they might just ignore it.
I believe they show customer orders to keep the ECN's from gaining real traction in the market.
SMID: That does look like a great idea. The one thought that would make me pause is.... If I owned a multi million dollar home at the beach, do I want those cement highway dividers infringing on my view. I might just go for the sand replenishment method. Of course if it became a status symbol like driving a Prius, then maybe it would take off!
Thanks for the idea, will watch list it.
Brinker, housing disaster & fuel costs are moderating growth and keeping inflation in check. Slow growth is good. Low risk of recession in spite of media frenzy regarding the issue.
Those are some of his thoughts! I refuse to defend them. LOL
His timing over the years made me a lot of extra $$$$ that I otherwise would have missed out on.
OT BRINKER: November newsletter remains bullish into 2008 - FWIW
KIK: Citron pegged CPLY now CRGO long ago. Had I listened to them I could have save big bucks.
HSOA, the acronym is "Help Shred Other Assets".
Pricing for bankruptcy would be $.25 - $.50
OT:
If I was "the rogue" I could cough up the $90.00 to help spread the word about the lies and deceptions that abound around us.
Oil - can't even begin to pick a price, however Len... you might have to dig up some of that backyard gold reserve to pay for it.
IRAN bombed = $162.50
otherwise = $107.21
IIMG: New reverse merger deal just completed. Chinese Bio Fuel company. No real trading yet, no float on the street. Was unable to snag a real size position at lower prices as they just did not want to let any stock flow to us investor types. LOL
Don't know where it will go as of yet.
from the 8K - $.27 eps 2007, $.45 2008 is what they are committing to.
We entered into an escrow agreement with the Investor (the “Escrow Agreement”), pursuant to which Redsky initially placed 4,545,455 shares of common stock (the “Escrow Shares”) it received in the Share Exchange in an escrow account. The Escrow Shares are being held as security for the achievement of $0.27 per share in each of our audited net income and cash from operations results for the fiscal year 2007 ( the “2007 Performance Threshold”) and $0.45 per share in each of our net income and cash from operations results for the fiscal year 2008 (the “2008 Performance Threshold”). If we achieve the 2007 Performance Threshold and the 2008 Performance Threshold, the Escrow Shares will be released back to Resdky. If either the 2007 Performance Threshold or 2008 Performance Threshold is not achieved, an aggregate number of Escrow Shares (such number to be determined by the formula set forth in the Escrow Agreement) will be distributed pro-rata to the investors, until such time that the Escrow Agreement terminates, Investors, based upon our actual audited net income and cash from operations for the fiscal years 2007 and 2008. Pursuant to the Escrow Agreement, within 5 business days after release of any of the Escrow Shares to the Investors, Redsky shall deliver that number of additional shares of common stock as is necessary to maintain 100% of the number of original Escrow Shares in the Escrow Account at all times.With respect to the 2007 and 2008 Perfomrance Targets, net income shall be defined in accordance with US GAAP and reported by us in our audited financial statements for each of 2007 and 2008, plus any amounts that (1) may have been recorded as charges or liabilities on the 2007 and 2008 financial statements, respectively, due to the application of EITF No. 00-19 that are associated with (i) any outstanding Warrants, (ii) the transactions contemplated by this escrow agreement, and (iii) any issuance under a performance based stock incentive plan that was in existence on the Closing Date, and (2) any and all expenses incurred by us in connection with the consummation of the transactions contemplated by the Purchase Agreement and the Share Exchange Agreement. Upon the termination of the Escrow agreement, any and all Escrow shares remaining in the Escrow account shall be returned to the Registrant.
GUFR: Awaiting the 8K to find all the details but this looks like a nice acquisition for GUFR and combined with the announced 2 for 1 split we could see the stock double again.
Gulf Resources Announces Asset Purchase Agreement with Shouguang City Renjia Area
Expected to Initially Add 3,700 Tons of Incremental Annual Bromine Production Capacity Equating to $6.8 Million in Revenue and $1.8 million in Net Income
LOS ANGELES and SHENZHEN, China, Oct. 29 -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GUFR - News) a leading producer of Bromine and crude salt in China through its wholly-owned subsidiary Shuoguang City Haoyuan Chemical Company Limited (SCHC), announced today it signed a definitive agreement to acquire substantially all of the assets of Shouguang City Renjia Area, a bromine producer located in close proximity to SCHC for approximately $6.4 million in total consideration.
The assets include a 50-year mineral rights and land lease covering 2,165 acres through December, 2054, which has been paid in the full. The property has 200,000 to 250,000 metric tons of proven bromine reserves. Additional assets to be conveyed with the purchase include the related production facility, wells, pipelines and other production equipment, in addition to the current buildings and other assets on the property. The Company executed an asset purchase agreement with Mr. Jiancai Wang, the sole owner on October 25, 2007.
The facility is currently operating at 65 percent capacity and produces approximately 3,700 metric tons of bromine annually through 398 wells, which equates to $6.8 million in revenues and $1.8 million in net income at current market prices. Gulf Resources anticipates making $4.2 million in facility upgrades and capital expenditures over a four month period, which are expected to increase capacity utilization to 85 percent and increase overall bromine production output to 4,800 metric tons annually. In addition, the Company estimates the property will yield approximately 25,000 metric tons of annual crude salt production, equating to $0.33 million in incremental revenue.
"The acquisition of Shouguang City Renjia Area is part of our strategic plan to utilize our valuable exploitation license to complete targeted bromine asset purchases which will further complement the Company's business by expanding its overall reserves and increasing annual production output," stated Ming Yang, CEO, Gulf Resources, Inc. "We will leverage our strong production capabilities and distribution platform to create additional economies of scale for future margin enhancements which will ultimately decrease the payback period."
The asset purchase is subject to various conditions, including applicable regulatory approvals. Further details on the terms of this transaction can be found in the Company's 8-K which will be filed with the Securities and Exchange Commission.
Gulf Resources, Inc.
Gulf Resources, Inc, operates through two wholly-owned subsidiaries: SCHC which is engaged in manufacturing and trading Bromine and Crude Salt in China. Bromine is used to manufacture a wide variety of bromine compounds used in industry and agriculture, and SYCI which manufactures and sells chemical products utilized in oil & gas field explorations and as papermaking chemical agents. For more information, please visit http://www.gulfresourcesco.com .
Safe Harbor Statement
Certain statements in this news release may contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: the ability of Gulf to complete the asset purchase of Shouguang City Renjia Area, the general economic and business conditions in the PRC, product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and crude salt, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Ethan Chuang
Tel: +1-714-858-1147
Email: Ethan@gulfresourcesco.com
Matthew Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: Matt.hayden@hcinternatioal.net
CFSG: I am afraid to just give a quote on this board for fear of being ripped apart. CFSG is on fire again , up 10% today. Suspect blow out earnings or acquisition news, otherwise I am stupefied as to what is pushing this so fast and furious.
No complaints. Gotta love the low float on the upside.
Not sure why they never released this on the wire!
September 9, 2007
ECSI TEAMS WITH S-TECH AND E2 ENGINEERING FOR MID-SUB PROGRAM
ECSI and E2 Engineering are direct subcontractors to S-Tech who is priming the Mid-Sub Program. Arthur Barchenko, President and CEO, stated, "We believe this teaming program will yield ECSI significant sales of its core technologies consisting of integrated physical security equipment, surveillance and communications, along with technology insertion, training, sustainment and technical support services over the next five (5) years."
About Mid-Sub Program
Mid-Sub Safeguards and Security Program provides physical protection for personnel, facilities, equipment, materials, and information of multinational, private enterprises, government, and non-government agencies in the Middle East and Africa regions through contracting work in Nigeria, Ghana, Cameroon, Kenya, Tanzania, Egypt, and Saudi Arabia utilizing network of local service providers, commercial, and public sector contacts. The Program promotes the adoption of Mid-Sub Team advanced security, surveillance, and communications technology products and expertise, and leverages US government investment in the regions. Training and certifying the local workforce capable of sustaining capital investments are likely to invest in future product offerings from Mid-Sub Team. Our security focus areas include cyber security, emergency management, physical security, surveillance and notification, technology development, testing and evaluation, training, and risk assessments. Mid-Sub Team shall perform as consultant for this initiative and will produce a schedule of proposed fees on a deal by deal basis, and will provide sales, marketing, business development, and contract administration services as prime contractor for the region.
About S-Tech
S-Tech Integration and Consulting (S-Tech) S-Tech is a certified small minority-owned consulting and technology company that has been providing system integration services to both commercial and government interests since its inception in 2000. We have over 80 years experience providing superior consulting and integration services in the communications and networking industries for leading industry and government organizations. With a solid background in security, database technology, telecommunications, computer networking, systems evaluation, integration and testing methodology, we offer full turnkey solutions to our clients as well as staff augmentation on a project by project basis. S-Tech is continuously working on projects that consistently save our customers time, money, and lives. Press Contact: nate.udofia@3s-tech.net
About E2 Engineering
E2 is a full-service, multi-disciplined, consulting engineering firm. Founded in 1988, E2 is minority-owned and a certified Small Disadvantaged Business with a staff of 160 engineers and technical specialists. E2 operates at 10 offices dispersed throughout the U.S., specializing in the areas of security, construction management, project management, quality assurance, start-up services and environmental and fire protection engineering. Our clients include businesses in the private sector, public utilities and federal, state and local agencies.
In addition to its work in the U.S., E2 and its employees possess experience/expertise gained through working to secure 'high value' targets in 39 countries. E2 core competencies include vulnerability assessment, security systems design and installation project management, operational security infrastructure development, systems testing, and training of both system operators and administrators. E2 employs advanced information technologies, to develop a leave behind tool to guide our clients in sustaining their newly enhanced security posture, and to determine how future changes in site operation affect that security posture.
"We believe that as energy supplies become tighter, protecting that supply and the supporting infrastructure that delivers it will become a priority of the highest order for both the energy industry and those societies that depend on an uninterrupted delivery of those products. E2 looks forward to applying the lessons learned through it experience protecting high value targets to this challenge." said Hersh Saluja, E2's President and Chief Executive Officer. Please visit: http://www.e2.com
Partial fills: Funny how you look at it. I find a partial fill on a buy to be a positive that the sellers are not anxious. As for zynx, still waiting for Hank to deliver a test machine for my evaluation. LOL
clever: Yes you can tax the money and pay the penalty plus tax. Ouch!
Are you able to get a 401K loan? Or is that also not allowed. The hardship withdrawal does create extra burdens on the employer and from what I know, many small employers don't let it happen.
VBDG: What am I missing about the following that does not seem to concern those that are long this stock?
Item 1.01 Entry into a Material Definitive Agreement.
On August 27, 2007, Vertical Branding, Inc. (“ VBI” or “the Company” ), and the holders of its senior secured 10% convertible notes in the current aggregate principal amount of approximately $5 million (the “Notes”) entered into an amendment (the “Amendment”) to the registration rights agreement covering the shares of Company common stock issuable upon conversion of the Notes (the “Conversion Shares”). Under the terms of the original registration rights agreement, as subsequently modified by waivers of certain rights executed by the holders from time to time, the Company was to have secured the effectiveness of a registration statement covering the Conversion Shares by June 15, 2007, after which date, should the registration statement not be timely declared effective, there would be periodic reductions in the exercise price of warrants to purchase up to 3 million shares of the Company’s common stock issued in connection with the original sale of the Notes by the Company in August and September 2006 (the “Warrants”), with the exercise price of the Warrants subject to a floor of $0.37. As of the date of the Amendment, the exercise price of the Warrants was $0.50.
Under the terms of the Amendment, the Company has the right to withdraw the pending registration statement covering the Conversion Shares and to re-file such registration on or before October 31, 2007 (the “Filing Deadline”), with such registration required to be declared effective within 90 days thereafter (the “Effectiveness Deadline”). In the event the Company fails to meet the Filing or Effectiveness Deadline, and for each 30-day period such failure continues to exist, the Company would be required to issue to the Holders additional warrants to purchase the Company’s common stock at then current market price with the number of shares underlying the warrants determined by dividing (x) one percent (1%) of the amount of principal then outstanding on the Notes by (y) the market price of the Company’s common, such price not to be less than $0.37 nor greater than $1.
Simultaneously with the Amendment, the Company and the Holders entered into an agreement pursuant to which the Company has the right, but not the obligation, to redeem the Notes by paying to the Holders, on or before September 30, 2007, an amount equal to 110% of the amount of principal then outstanding on the Notes. Under the original terms of the Notes, the Company has the right to redeem the Notes for an amount equal to the greater of (i) 125% of the amount of principal and interest outstanding thereon, or (ii) the value of the Notes on a converted basis as determined in accordance with a formula provided therein. In the event the Company does not redeem the Notes by September 30, 2007, or by October 25, 2007 under certain circumstances, then the exercise price of the Warrants would reduce from $0.50 to $0.37, and the Company expects to file a new registration statement covering the Conversion Shares in accordance with the registration rights agreement as amended.