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Thursday, 02/10/2011 11:49:47 PM

Thursday, February 10, 2011 11:49:47 PM

Post# of 1069

here's the translation of an earlier post, shows gulf resources subsidiary Shouguang City Haoyuan Chemical Co. Ltd (SCHC)as the top producing bromide company in china by far.

Ultimately this company has all of the aspects of a great Warren Buffet pick. One of his rules was that the company was in a sector that had large barriers of entry. You can't get much better than GFRE the Chinese gov't only gave a very limited amount of bromide licenses (about 6 i believe). GFRE has one of them and commands a strong market share in the sector of crude salt and especially bromide. There strategy of gobbling up smaller bromine players in china and other properties seems ideal with their strong position in the industry. This is yet another reason why the government would back them and help them with these land acquisitions.
Another thing to note is Gulf Resources has very high margins which are increasingly rising with their waste water treatment and chemical line. Not to mention no debt, very high current ratio, huge cash per share, healthy price to cash flow, an extreme bargain based on peg and forward p/e, and lastly a pending internal controls assessment by Deloitte.
No doubt a great buy for a huge discount.