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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (38646)	7/30/2010 6:59:06 AM
From: Madharry	Respond to of 78702

nope i erased the comment when i realized it was probably a different company. no experience with that one. re gfre the 2nd quarter calll should be an interesting one, regarding a shelf offering with no information regarding the use of the funds etc. It might mean that management is convinced they can continue to make accretive acquisitions and perhaps become more of a heavyweight in the chinese economy thereby. My hope is that it means the quarter is an exceptionally good one and that it will be comparatively easy for them to raise additional funds.

To: Spekulatius who wrote (38646)	7/30/2010 1:14:00 PM
From: gcrispin	Read Replies (1) \| Respond to of 78702

it sounds like they are hellbent on expansion. that is not good for shareholders My view is that GFRE has historically been hellbent on expansion and it has been good for shareholders. GFRE is the classic GARP stock. In 2006 revenues were 31 million. Projections for 2010 are 148 million. Earnings per share in 2006 were .18. Projections for 2010 are 1.25. All of this has been accomplished through organic growth in their chemical division and through acquisition of bromine and crude salt assets. Annual production capacity of bromine has grown from 12000 metric tons in 2007 to 43000 metic tons by the end of 2009. For crude salt grown from 100000 metric tons in 2007 to 450000 in 2009. Such a large shelf registration should give investors pause. But I feel this is one of the few Chinese companies that has increased returns to shareholders. The company sits in a rather enviable position as demand for bromine exceeds production in China. slideshare.net GFRE used to be my largest position. I sold half and have an average price of 2.20 on my remaining shares. So "hellbent expansion" has been good for me :) I still like the company, and the second quarter CC should provide some color to the shelf registration.