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Erik Wright  

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  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    For those interested CCGY just announced Preliminary Results, it seems they may exceed my estimates:

    finance.yahoo.com/news...
    Mar 8, 2011. 11:02 AM | Likes Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    You may be right we may only hear about the release the day before, but there has already been some considerable news that has been released.

    First the Deloitte update.

    Secondly, a new lease contract with a state owned enterprise. It also allows them to dig 100 new brine water wells to help boost bromine production. biz.yahoo.com/e/110304...
    Lastly a change in directors,
    the new one:Mr. Yang Zou, age 40, currently serves as auditing project leader at Beijing Zhongpingjianhuahao Certified Accountants Co., Ltd. He is a Certified Public Accountant of China and holds the certificate of Certified Internal Auditor.

    These are all visible in the SEC fillings, the fillings for the lease also lists a large amount of equipment that come with the property. Such things include anything from a Bromine tank to a single floor office house. yahoo.brand.edgar-onli...
    (the list of items can be viewed from exhibit 10.2 in the link)
    Mar 4, 2011. 08:34 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    gfreinvestor, as per CCG they said "the management is currently preparing for its 10-K due by March 15". I assume that answers the question of when the earnings will be out as well as the CC.

    On another note GFRE just issued an update on the internal controls assessment:finance.yahoo.com/news...

    Not that long of a PR but its still nice to see management has decided to inform us. As previously stated this internal assessment was not an audit and was only for management to use to make the company better. Therefore, I consider the update to be useful as an update of the companies development and should be seen as positive news.
    Mar 4, 2011. 09:03 AM | 1 Like Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Thank you for your interest Curious Investor,
    I personally have been in contact with the CFO trough email, he responds usually pretty quickly and gives quite elaborate and personal responses. As I have dealt with other China stocks and have emailed other executives from companies, he has surprised me as one of the most shareholder friendly executives. The problem with many other Chinese companies is most executives don't speak English but Mr. Chen their CFO seems to have very good English. The company also seems to encourage that they are shareholder friendly and that if any shareholder would want to visit their facilities they are welcome to do so. Although some things could be improved such as the Investment relations of the firm and PR announcements to shareholders, my personal impression of management is quite positive.

    As seen in the article the demand for these "clean products" are in high demand for many reasons including:
    The Chinese government increasing its commitment to promote renewable energy, motor vehicle growth in china, the spotlight on renewable or green chemical products as well as many more.

    As for uses;
    Biodiesel can be blended at any level with petrodiesel or used in its pure form for consumption in diesel car engines and farming vehicles.

    A list of their products include:
    * Monomer Acid
    * Stearic
    * Dimer Acid
    * Printing Inks
    * Dimer-Based Polyamide Hot Melt Adhesives
    * Low Molecular Weight Liquor Polyamide Resin
    * High Performance Polyamide Hot-melt Adhesive
    * Alcohol-Soluble Polyamide Resins
    * Benzene-Soluble Polyamide Resins
    * Biodiesel & Bio Heating Fuel

    All have quite diverse uses throughout the chemical industry. If you would like more information about CCGY as well as the application of some of these Chemical products you can refer to their slideshow:
    www.chinacleanenergyin...
    p.10 outlines the uses of certain products

    Hope that helps,

    Erik
    Mar 2, 2011. 01:54 AM | 1 Like Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Retire Fund I have read your article and it was very well researched and will consider Talison as an investment. Although some may disagree with the growth of biofuels, CCGY has shifted away from biofuels to be more diversified which is why its main products represent specialty chemicals that have higher margins, large demand and large international customers. The article describes some background about the industry but was more to depict the evident value residing in the company itself as well as potential catalysts.

    As for Wind4me, seems to be quite an uninformed comment. It is a dollar stock, but how do you think many of the great companies you know today started off? Much higher returns can be achieved by doing some good due diligence and investing in quality small cap stocks. Although CCGY probably won't become a huge company in terms of market cap it does have some good growth prospects and will be uplisting to either the NASDAQ or AMEX. Its new facilities will help boost earnings which should help propel the stock higher.
    Mar 1, 2011. 10:46 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Just got a reply to my previous email about contract length and pricing:

    "Currently the government does not pose any restrictions on bromine prices. Thus far, they have not seen bromine prices as a significant inflationary threat as the raw material only constitutes a small portion of most finished products and as they are more concerned with bromine industry consolidation in order to improve manufacturing efficiency and overall safety of the industry. However, they may of course impose price restrictions in the future.

    Gulf Resources sells all bromine through fixed contracts (on average 3 months), but has the ability to renegotiate contract prices based on significant changes in market price."

    hope this helps,
    Mar 1, 2011. 09:43 AM | 2 Likes Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Thank you for your comment, you are right about the shelf filing in August 2010.
    Furthermore,
    in a separate press release in September management stated the following regarding shareholders being concerned of dilution at such a low share price:www.prnewswire.com/new...
    "Acquisitions remain an important part of our growth strategy and we plan to use our common stock as currency for acquisitions, but only at levels that are accretive to our existing shareholders. Our ultimate goal, besides achieving revenue and net income growth, is to increase shareholder value as measured by growing our earnings per share," said Mr. Xiaobin Liu, CEO of Gulf Resources. "We have a strong cash balance, no long-term or short-term debt and our operations generate healthy cash flows. This provides us with flexibility to execute on our growth strategy as we identify acquisition targets with attractive valuations."

    There may be dilution in the future but management has been smart with their execution. They would not dilute at the current share prices. They have a very large amount of cash and would use that or debt before issuing shares. If shares rise to a more compelling value I can see them issuing shares.

    As well, a little after the S3 filling on Sept. 24th GFRE issued a press release to buyback $10M of shares.
    www.4-traders.com/GULF.../

    To be issuing shares at the same time as buying back would be contradictory. Therefore, I believe the S3 filling in August was only on an if necessary basis since it is effective for 2 years. I personally don't see it happening anytime soon.

    As for email responses I email Linda of CCG and she seems to get back within a few days. I have emailed her in the beginning of last week and have gotten an email back, but have yet to receive an email back from my Friday email. I will keep you posted.
    Feb 28, 2011. 10:12 PM | 2 Likes Like |Link to Comment
  • China Clean Energy: A Stellar Opportunity in China's Clean Energy Sector [View article]
    Thanks for the informative comment Thomas,

    for those who want more information about China Clean Energy their website is: www.chinacleanenergyin.../

    The IHUB board: investorshub.advfn.com...

    The OTC Market Quote:www.otcmarkets.com/sto...
    Feb 28, 2011. 04:07 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Fully diluted EPS is $1.35.
    You can view all the data on Morningstar
    financials.morningstar...
    As per my knowledge of Gulf Resources they have not been like many other Chinese small caps. They have not heavily diluted at all. They have a very large amount of cash and I don't see any further dilution of a large size being necessary unless they truly did a very large acquisition. But, as for basic eps vs. diluted eps, they are the same and the valuation will only go lower when their earnings come out. Morningstar has gfre's forward P/E as 4.9.
    financials.morningstar...
    Feb 28, 2011. 12:57 AM | Likes Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    For those interested Zacks came out with an article saying Gulf Resources had the highest earnings yield in the diversified metals and mining industry and appears to be undervalued.
    www.zacks.com/research...
    Feb 26, 2011. 06:17 PM | 1 Like Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Thank you for the comment Cliff. Although I do not have the exact information to your questions, I contacted CCG, the companies investor relations firm in the past and they addressed similar questions.
    They mentioned that in China the selling prices are not determined by the government, but are determined by the bromine producers trough private negotiations, therefore the contract prices may lag the market price. Although some of it may lag the market, when renewing the contracts, prices should be renewed at higher levels.

    I have emailed both the company and the IR firm for more clarification on the average time of contracts and percentage of output. I will repost them here when I have the answers.
    Feb 25, 2011. 09:52 PM | 4 Likes Like |Link to Comment
  • Higher Oil Prices: Short-Term Correction Imminent [View article]
    JeffDB I completely agree with you that technical analysis is meaningless when unexpected events such as the ones in Libya occur. Simply it was to demonstrate that the charts are overbought which would mean that a retreat would occur given that the concerns of Libyan oil supply settles.
    I also agree that when everything settles cannot be determined but as we saw yesterday when settling news from Saudi Arabia was announced traders could have made money by shorting at 102$ and covering at $97-96. I have personally covered my short position to keep yesterdays profits because I do agree the situation is not settled and speculators are very much speculating that oil may continue to go higher because the situation is not yet completely calmed.
    Just last night I was watching the news and an analyst had projected that if things did get worse oil could go up to $200. Although I strongly doubt that a scenario with such high oil prices would happen I remain cautious and will wait and see for more news before initiating another position.
    Feb 25, 2011. 01:54 PM | 1 Like Like |Link to Comment
  • Higher Oil Prices: Short-Term Correction Imminent [View article]
    I agree with you that it would not be wise to short for long which is why I advised to be cautious shorting oil and to use stops to protect your profits/losses. As per the DOW theory the market is made up of multiple waves and within each wave lies other smaller waves which traders can profit from. I agree the long term trend looks to be upwards since economies continue to experience some growth and recovery. Yet, people can profit from short term short positions. I personally also began a position in DTO similar to Charaka this morning at $49.17 which was near the morning spike in oil prices, but as we saw later today when Saudi Arabia stepped in and said they would supply additional oil prices dove down lower as concerns of Libya not supplying oil was eased. It appears that things will get back under control, Obama even spoke about this today which demonstrates the urgency that the U.S and other countries may take to fix these problems.
    As for the fear of a recession, I agree with Steve we probably won't be pushed into a recession due to high oil prices. With higher oil prices the growth rate of the economy may be hampered but I do not believe that it will be negative. I do however agree that if they did go up to 140$ we would most likely be pushed into a recession similar to what happened in the last recession. This recession would thus push demand and oil prices lower to a more reasonable level as seen previously. My personal belief is that around $90-100/barrel is sustainable.
    Feb 24, 2011. 06:37 PM | Likes Like |Link to Comment
  • Higher Oil Prices: Short-Term Correction Imminent [View article]
    threepole you may be right, but when Libyan concerns settle oil will have some ground to pull back on. As we can see today this will not be happening. As long as concerns are still brewing oil will remain high.
    As for the impact on the world economy as I mentioned it will stunt growth that we had been experiencing. Consumers and companies especially like the airline industry will be hurting.
    Feb 24, 2011. 08:22 AM | Likes Like |Link to Comment
  • Gulf Resources: A Compelling Opportunity in the Bromine Market [View article]
    Good comment ThMazz, you bring up a good point that I forgot to touch on.
    The Yuan appreciation vs. the $US is another positive for GFRE as well as all other chinese companies reporting in $US. The fact is when the Yuan appreciates it will convert into a larger amount of $US since it will have a larger purchasing power. Since Gulf Resources reports their earnings in $US, their earnings will appear larger when the Yuan appreciates. This is yet another positive aspect for GFRE since as China gets pushed to let their currency appreciate GFRE will benefit.
    Feb 23, 2011. 11:14 PM | 4 Likes Like |Link to Comment
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