Orient Paper has also followed the textbook formula for a high-return stock, and I expect it to continue on this path. Earlier this year, the company conducted a 1-for-4 reverse split, appointed BDO as its new auditor, restructured its board, appointed "uplist specialist" CCG to manage its investor relations effort and then successfully uplisted to the Amex. In the last quarter, growth exceeded 100% with expanding margins. Based on recent acquisitions, which have successfully closed, I see Orient Paper positioned for huge growth going forward, with gross margins in excess of 60%. On the qualitative side, I like Orient Paper because the company is very easy to communicate with and is very open with investors. After the company's recent acquisition and financing earlier this year, I was able to get CFO Winston Yen on the phone within 30 minutes, and he spent as much time as needed to answer all of my questions. Subsequently, I met with Chairman Liu in Beijing, who also spent several hours with me discussing the business. Now the company is practically insisting that I come to visit its facilities, and I have agreed to do a multimedia video tour, which I plan to post here on TheStreet.com. With the company so insistent on my visiting, I am expecting to see something impressive. On the valuation side, Orient Paper skyrocketed nearly 30% after posting exceptional quarterly results. The stock has been trading between $9 and $10 on a backward-looking price-to-earnings ratio of about 8 and a forward PE of about 4.
Shares of Gulf Resources (Nasdaq:GFRE) have taken a tremendous swing upward. The stock is trading at $3.47 as of 3:51 p.m. ET, 20.1% above Monday's closing price of $2.89. Volume is at one million, 0.6 times the daily average of 1.7 million.
Gulf Resources (Nasdaq:GFRE) is trading at unusually high volume Wednesday with 5.2 million shares changing hands. It is currently at four times its average daily volume and trading up 19 cents (+4.5%).
Shares of Gulf Resources (Nasdaq:GFRE) were gapping up Tuesday morning with an open price 22.4% higher than Monday's closing price. The stock closed at $3.03 yesterday and opened today's trading at $3.71.