GFRE (Long)...

Gulf Resources is a Chinese chemical manufacturer. It doesn't report earnings until mid to late March. GFRE pays no dividend. It is optionable, but the chain has wide strikes, wide bid/ask spreads, low volume, and low open interest, so it's not a great place to be buying. To be honest, this options chain is so bad that we might as well just say it doesn't have one.

GFRE scores a 2/1, with 100% interest on the Motley Fool screen, 92% interest on the Martin Zweig screen, 74% on the Peter Lynch screen, 71% on the Momentum screen, and 70% on the Joel Greenblatt screen.

GFRE's pulled back about 20% in the past week, peaking just under $15 and closing today right around $12.25. I expect the 50-day EMA to act as support, but it's about $1 lower than current levels. If the 50-day EMA fails to act as support, there is also the previous breakout level around $10.50 to act as support. GFRE has shown exactly zero signs of reversing this pullback, so I'm content to watch this one drop. However, I expect this drop to prove to be a buyable pullback, so I wanted to get it on the watchlist with that in mind.



Position: none

Disclaimer: This is not a recommendation and is presented for informational purposes only.