NEW YORK ( TheStreet) -- 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 Monday and opened today's trading at $3.71. The average volume for Gulf has been 1.2 million shares per day over the past 30 days. Gulf has a market cap of $112.2 million and is part of the basic materials sector and chemicals industry. Shares are down 69.8% year to date as of the close of trading on Monday. Gulf Resources, Inc. and its subsidiaries manufacture and trade in bromine and crude salt, as well as manufacture chemical products for use in the oil industry and paper manufacturing industry in the People's Republic of China. The company has a P/E ratio of 2.2, equal to the average chemicals industry P/E ratio and below the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates Gulf as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself. You can view the full Gulf Ratings Report. Get more investment ideas from our investment research center. Interested in other stocks that are gapping up? Get free SMS text alerts sent to you when the action happens by texting UP to 95370 or select from multiple alert options.