Bromine Prices Being Driven Up In 4Q

Oppenheimer has published a research report on Gulf Resources, Inc.

following 3Q results and an unforeseen supply shortage. In the report, Oppenheimer writes "While China's bromine prices have jumped over 40% YTD on a constant currency basis, trading at a record high of ~$3,750 per metric ton, we expect solid demand coupled with supply shortages to drive further bromine price increases by YE2010. Positive comments from Albemarle's 3Q earnings call bode well for China's bromine industry outlook. With GFRE shares trading at only 5.5x our 2011E EPS of $1.52, risk/reward remains favorable, in our view. We continue to view company guidance as conservative and expect favorable pricing to lead to upside." Oppenheimer maintains its Outperform rating and $12.50 price target. Gulf Resources closed Friday at $8.30.