Shares of Gulf Resources Inc. (NASDAQ: GURE), a China-based manufacturer and trader of bromine and crude salt as well as a manufacturer and seller of chemical products used in oil and gas field exploration, oil field drilling, wastewater processing, papermaking chemical agents and inorganic chemicals, have risen sharply in trading today. In fact, the rally has pushed GURE shares above some key technical levels. The stock also struck a 52-week high of $2.06.
GURE shares have had an excellent run over the past month after the company reported its financial results for quarter ended June 30, 2013. For the second quarter, GURE reported net revenue of $32.9 million, up 5% on a year-over-year basis. The company attributed the year-over-year increase in revenue to the growth in its chemical products segment.
The company’s gross profit for the quarter was $9.6 million, down 3% on a year-over-year basis. Gross margin for the quarter was 29%, down from 32% reported in the second quarter of 2012.
Gulf Resources reported second-quarter income from operations of $7.4 million, compared to $7.6 million reported for the same period in the previous year. The company’s operating margin for the quarter was 22%, compared to 24% reported for the same period in the previous year. Net income for the quarter was $5.4 million, or $0.14 per share, compared to $5.7 million, or $0.16 per share reported for the same period in the previous year.
Xiaobin Liu, CEO of Gulf Resources, last month said that he is pleased that the company’s net revenue for the second quarter of 2013 increased 5% as compared with the same quarter of 2012, which is mainly due to the increased sales efforts.
Commenting on the company’s outlook, Liu said that although still impacted by China’s macro-economic conditions, some raw material prices are increasing. Liu further said that the average bromine price in the second quarter of 2013 increased to $3,084 per ton as compared to $2,954 by end of 2012. Liu also noted that crude salt price is in a steadily upward trend, and the gross margin of chemical products segment also increased to 33% in the second quarter of 2013. Liu added that the company will continually try to expand its sales markets, increase its product utilization rate and decrease management and administration expenses.
GURE shares surged to a 52-week high of $2.06 in trading today. At last check, the stock was up 17.75% to $1.99 on above average volume of 818,558. GURE shares have gained nearly 35% in the last one month.
The stock today broke through $1.80 resistance level as a result of the sharp rise. This is a strong bullish signal. The bullish trend is further confirmed by the stock’s MACD chart. GURE shares are expected to break through $2 level in the next few trading sessions.
The technical indicators for GURE suggest that the stock could see some gains in the near-term. However, GURE also looks like a good opportunity in the longer-term, given the company’s bullish outlook.
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GURE shares have had an excellent run over the past month after the company reported its financial results for quarter ended June 30, 2013. For the second quarter, GURE reported net revenue of $32.9 million, up 5% on a year-over-year basis. The company attributed the year-over-year increase in revenue to the growth in its chemical products segment.
The company’s gross profit for the quarter was $9.6 million, down 3% on a year-over-year basis. Gross margin for the quarter was 29%, down from 32% reported in the second quarter of 2012.
Gulf Resources reported second-quarter income from operations of $7.4 million, compared to $7.6 million reported for the same period in the previous year. The company’s operating margin for the quarter was 22%, compared to 24% reported for the same period in the previous year. Net income for the quarter was $5.4 million, or $0.14 per share, compared to $5.7 million, or $0.16 per share reported for the same period in the previous year.
Xiaobin Liu, CEO of Gulf Resources, last month said that he is pleased that the company’s net revenue for the second quarter of 2013 increased 5% as compared with the same quarter of 2012, which is mainly due to the increased sales efforts.
Commenting on the company’s outlook, Liu said that although still impacted by China’s macro-economic conditions, some raw material prices are increasing. Liu further said that the average bromine price in the second quarter of 2013 increased to $3,084 per ton as compared to $2,954 by end of 2012. Liu also noted that crude salt price is in a steadily upward trend, and the gross margin of chemical products segment also increased to 33% in the second quarter of 2013. Liu added that the company will continually try to expand its sales markets, increase its product utilization rate and decrease management and administration expenses.
GURE shares surged to a 52-week high of $2.06 in trading today. At last check, the stock was up 17.75% to $1.99 on above average volume of 818,558. GURE shares have gained nearly 35% in the last one month.
The stock today broke through $1.80 resistance level as a result of the sharp rise. This is a strong bullish signal. The bullish trend is further confirmed by the stock’s MACD chart. GURE shares are expected to break through $2 level in the next few trading sessions.
The technical indicators for GURE suggest that the stock could see some gains in the near-term. However, GURE also looks like a good opportunity in the longer-term, given the company’s bullish outlook.
View to Original post :- Click here
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