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

To: Madharry who wrote (39325)	9/17/2010 11:45:39 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78763

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.

To: Madharry who wrote (39325)	9/27/2010 10:12:06 AM
From: MCsweet	Read Replies (1) \| Respond to of 78763

GFRE, Buyback is a great idea for this one. Management seems to be doing all the right things. Side note: IMO it is important that they actually buyback stock, though, not just use this as a PR stunt. I am selling a little here to take some profit and reduce my risk. The position was giving me indigestion on the big volatility (and the fact this is not one of my high-confidence stocks, so not prepared to continually double down), so I think it prudent to pare it down a little on good news. That being said, if I didn't own some I would have a been a buyer on the open. It is a potential game changer. MC