When the stock hit $8.00, I stopped referring to him as "Amit" and started asking for "Mr. Dayal" when I called. The pick was gutsy for two reasons. First, openly predicting a 4-bagger when initiating coverage takes a lot of conviction. Second, many Wall Street analysts will ignore stocks which trade with such low volume, assuming there is limited opportunity for their clients to actually establish a position. Even worse, it can be very tough to get out of such illiquid positions. But Mr. Dayal was correct in assuming that liquidity would follow performance, and now the stock trades nearly $3 million per day. So for those patient enough to get in with small dribs and drabs in September, the payoff has been 5 times in only four months.
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.