DD on $GURE - a high potential growth stock

DD on $GURE:

Gulf Resources, Inc., manufactures and trades bromine, crude salt, and specialty chemical products in China. They have shown consistent growth over the past few years, and their stock is currently very undervalued.

Fundamentals:

Current stock price: $2.32

EPS: 0.81. Very high EPS for a stock that’s this cheap

P/E ratio: 2.86. Very low for a company expecting high growth in the future

P/B and P/S ratios: Both below 1, extremely low when compared to competitors in their sector

Profit Margin: 23.97%. This high number shows management effectiveness

Operating Margin: 31.84%. This high number shows management effectiveness

Current ratio: 12.48. Unusually high current ratio for a stock this cheap. This number is one of the most attractive qualities of Gulf Resources

Levered free cash flow: 16.78M. Always good for a company to have lots of free cash flow to invest back into their operations, and this company has that. Signals high future growth

Short % of float: 0.23%. People are very bullish on this stock

Expected net income for 2016: 40M to 45M. A minimum 17.6% increase from 2015’s net income of 34M

Management team: All highly educated Chinese scholars with years of experience leading successful companies

Technicals:

Beta: 0.90. Volatile enough to produce substantial short term returns

Trends: GURE has been in a strong uptrend since the beginning of 2016

I don’t use lagging indicators because I feel like they’re useless. But if you’re into that stuff, the RSI, Bollinger Bands and Williams% both say that the stock isn’t oversold or overbought, it’s right in the middle. The ADX says the stock is in a medium strength trend. OBV and A/D are both converging with price.

Moving averages: The stock price is well above both the 200 day EMA, and the 100 day SMA

Conclusion: Gulf Resources is a tremendously undervalued company in a strong uptrend. I’m not advising that you buy this stock, please do your own research before you make any financial decisions. Thanks for reading!

Submitted December 12, 2016 at 05:51PM by GucciPancakes6 http://ift.tt/2gT09mf