hi all, happy to see all of you again.
For GURE, certain items stand out that clearly is at odds. Happy to share to avoid pitfalls.
* Shouguang City Haoyuan Chemical Company Limited ("SCHC")
- Firm is $114m cap, with $146m cash, apparently only minimal lease borrowings. Owner owns c.30+%
- Firm bought $80m antibiotics co transaction from 4 individual shareholders of Shouguang City Rongyuan Chemical Co., Ltd. (“SCRC”) (said a leading player in antibiotics)?
- Consideration = $66.2m cash + issuance of 7.27m shares @$2.00/share, a 73% premium over the previous 10 day closing price, total $80.8m. The deal has a minimum profit level of $11.4m, if not deal price apportioned accordingly.
- Spent $488k on bromine exploration and found natural gas well in Sichuan China (area isnt known for gas production)? Also said spending $10m if its commercially viable after 3rd party checks. Im from Asia but didnt know budgeting is done this way lol.
- They produced about 21k tons of Bromine in 2014 at about $2,600 per ton. In 2007, China had 556kt mined worth $2.5b or $4496/ ton. China alone mined 110kt in 2014. So this guy is 25% of production in China hmm. Other major producers are US, Israel and Jordan.
- Wrote off of $673k in 2014, from impairment of protective shells on pipes? Pretty pricey stuff huh..
- Gained $2.5m on relocation of factories in 2013
- Firm makes 20% on net margins and 25% on operating margins - wow? and bought a company with minimum guaranteed 11.4/80 =13% net margins - double wow?
Anyway Im sure more exciting things happened during the RTO; a quick search and someone wrote more extensively some years back:
prnewswire.com |
