I've yet to be burned on Chinese stocks and I own at least 3 of them now, so I'm not as gun-shy as others. I'm not going to pound the table on GFRE, but here's why it's reasonable for GFRE to be earning solid earnings in relative to the share price:
1) If you search the internet in general for large bromine Producers in the world, GFRE comes up as one of the names.
2) If you search Bromine prices over the last couple of years, those are up also a good deal.
So, from a general standpoint, I think GFRE should be earning a lot of money in their business. And they're reporting good earnings, so it makes sense to me. I haven't done an exhaustive search, but it seems like various Bromine producers are doing well these days...
I'm not pounding the table, and I'm not going to take a large position in GFRE unless it slides under $5 and option premiums make a covered call a good risk/reward, but it looks like a value to me.
Thanks,
Grant |
