Stock analisys Gulf Resourses (GFRE)

Gulf Action Analysis Resourses (GFRE) (analysis of actions performed on 12/28/2010)
Conclusion:
GFRE invest in buying their shares. For the analysis we see that:

    * GFRE has a good management. During the past 4 years and now has had a steady increase in earnings per share.
    * Have your financial condition is good and so is a company that will continue so difficult financial problems.
    * We expect a return on investment exceeding 39% annually.

GFRE stock Analysis

PER
GFRE passes the first criterion of equity research since its current PER equal to 7.54 (we can see http://www.google.com/finance?q=NASDAQ% 3AGFRE or http://moneycentral.msn .com / detail / stock_quote? Symbol = GFRE) so it is below 15 and his average PER of the last 4 years.

Año
PER
           2.009  
4,5
           2.008  
5,9
           2.007  
11
           2.006  
15,5

             9,23  

Debt
GFRE passes the second criterion for evaluating actions. The debt to equity is equal to "0", we can see http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=GFRE
Growth in earnings per share
GFRE passes the third criterion of equity research in the last 4 years the average growth was 70%. We can see in http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=TenYearSummary&Symbol=GFRE
Valor de libros por acción (Book Value/ Share)
Retorno sobre el patrimonio (Return on Equity (%))
Beneficio por acción
Simulando un incremento anual del 70% con respecto a año 2004
Año 2007
3,89
23%
                          0,89  
                          0,86  
Año 2006
2,11
43%
                          0,90  
                          0,51  
Año 2005
1,06
46%
                          0,49  
                          0,30  
Año 2004
0,38
46%
                          0,18  
                          0,18  



In http://www.google.com/finance?q=NASDAQ:GFRE&fstype=ii http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=GFRE or we can see continue to grow earnings per share in 2010, if they do as in the first months of the year growth will be 43%.
2010
2009
1st Qtr
0,23
0,23
2nd Qtr
0,47
0,29
3rd Qtr
0,43
0,27
4th Qtr
0,21
Suma año
1,13
1



Suma 3 primeros qtre
1,13
0,79
Crecimiento BPA
43%



Rate of return by investing in GFRE
GFRE passes the fourth criterion for evaluating actions, the rate of return on the purchase of shares of GFRE believe will be more than 39%. For its calculation we take the 43% growth for 2010 assume that 70% believe it too high.
Cash flows to 10 years are:
Cash Flow 1) According to historical growth in earnings per share
Buy / sell stock
Earning per share
Dividend
Cash flow
Año 0
-         10,10  
             1,34  
                  -    
-         10,10  
Año 1
                  -    
             1,92  
                  -    
                  -    
Año 2
                  -    
             2,74  
                  -    
                  -    
Año 3
                  -    
             3,92  
                  -    
                  -    
Año 4
                  -    
             5,60  
                  -    
                  -    
Año 5
                  -    
             8,01  
                  -    
                  -    
Año 6
                  -    
           11,46  
                  -    
                  -    
Año 7
                  -    
           16,39  
                  -    
                  -    
Año 8
                  -    
           23,43  
                  -    
                  -    
Año 9
                  -    
           33,51  
                  -    
                  -    
Año 10
         479,14  
           47,91  
                  -    
         479,14  
TIR



47%



Cash Flow 2) In return on equity
Buy / sell stock
Book value per share
Earning per share
Dividend
Cash flow
Año 0
-         10,10  
             5,17  
             1,68  
                  -    
-         10,10  
Año 1
                  -    
             6,85  
             2,23  
                  -    
                  -    
Año 2
                  -    
             9,08  
             2,96  
                  -    
                  -    
Año 3
                  -    
           12,04  
             3,92  
                  -    
                  -    
Año 4
                  -    
           15,95  
             5,19  
                  -    
                  -    
Año 5
                  -    
           21,15  
             6,88  
                  -    
                  -    
Año 6
                  -    
           28,03  
             9,12  
                  -    
                  -    
Año 7
                  -    
           37,15  
           12,09  
                  -    
                  -    
Año 8
                  -    
           49,23  
           16,02  
                  -    
                  -    
Año 9
                  -    
           65,25  
           21,23  
                  -    
                  -    
Año 10
         281,43  
           86,49  
           28,14  
                  -    
         281,43  
TIR




39%


The cash flows to 5 years are:

Cash Flow 1) According to historical growth in earnings per share
Buy / sell stock
Earning per share
Dividend
Cash flow
Año 0
-         10,10  
             1,34  
                  -    
-         10,10  
Año 1
                  -    
             1,92  
                  -    
                  -    
Año 2
                  -    
             2,74  
                  -    
                  -    
Año 3
                  -    
             3,92  
                  -    
                  -    
Año 4
                  -    
             5,60  
                  -    
                  -    
Año 5
           80,13  
             8,01  
                  -    
           80,13  
TIR



51%



Cash Flow 2) In return on equity


Buy / sell stock
Earning per share
Dividend
Cash flow
Año 0
-         10,10  
             1,68  
                  -    
-         10,10  
Año 1
                  -    
             2,23  
                  -    
                  -    
Año 2
                  -    
             2,96  
                  -    
                  -    
Año 3
                  -    
             3,92  
                  -    
                  -    
Año 4
                  -    
           15,95  
             5,19  
                  -    
                  -    
Año 5
           21,15  
             6,88  
                  -    
           68,81  
TIR



47%

Data return on equity, book value per share and the payout can be seen in http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=GFRE

The current price PER and http://www.google.com/finance?q=NASDAQ% 3AGFRE or http://moneycentral.msn.com/detail/stock_quote?Symbol=GFRE

In http://investmentandeconomictheories.blogspot.com/p/itt-educational-services-esi.html can see an example with a detailed explanation of the model of analysis and evaluation of actions.
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