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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (39325)	9/17/2010 11:45:39 PM
From: Spekulatius	Read Replies (1) of 78764

re GFRE - during the last quarter GFRE's Depreciation expense was almost 4.8M$, or almost 10% of their revenues. However the depletion (rapid or not) appears to be the reason why GFRE cannot grow organically - they do not develop new bromine wells but buy existing ones and exploit them. They probably can increase production short term on purchased plants (debottlenecking) but LT they are looking into declining production from each existing well(very much like an E&P company). It is not a growth business model, it's a rollup business model, at least on the bromine side.

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