Gotta love this chart. I bought a couple of days ago...was pissed off yesterday.
Much happier today ;D
Quote from: kslifka on October 05, 2007, 04:21:11 PM
Gotta love this chart. I bought a couple of days ago...was pissed off yesterday.
Much happier today ;D
If you loved it then, you gotta love it now !
Getting the bounce off a 50% Fibonacci retracement...
kslifka, Applaud the pick...Nice work on your find !
52wk Range: 2.49 - 12.95
Volume: 2,649,100
Avg Vol (3m): 709,167
Market Cap: 174.21M
P/E (ttm): 39.08
EPS (ttm): 0.27
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
14.01%above 13-day MA
51.33%above 50-day MA
RS Rating: N/A
Fundamentals
Key Data:
Market Cap (M): N/A
P/E Ratio: N/A
PEG Ratio: N/A
Next Earnings: 11/08/2007
Last Analyst Rating: N/A
AP
China Direct Boosts 2007 Outlook
Monday October 22, 9:27 am ET
China Direct Raises 2007 Profit and Sales Guidance; Plans to Boost Growth Through Acquisitions
BOCA RATON, Fla. (AP) -- China Direct Inc., a U.S. company that owns controlling stakes in Chinese businesses and provides consulting services, said Monday it increased its 2007 earnings outlook 15 percent after initial reviews of third-quarter earnings.
China Direct expects net income to exceed $9.5 million for the year, up from previous guidance of $8.25 million.
Revenue is likely to exceed $175 million in 2007, up from a previous expectation of $150 million.
In addition to the better-than-expected performance from operations, the company said it recently got a cash infusion of $13 million from outstanding stock purchase warrants that have been exercised. The additional funds, coupled with strong cash flow from operations, will allow China Direct to accelerate its growth plans by acquiring more companies "that can quickly contribute to our overall operations," China Direct's Chairman and Chief Executive, James Wang, said in a statement.
Shares of China Direct rose $1.15, or 13.8 percent, to $9.49 in premarket trading. Shares have traded between $2.49 and $12.95 during the past year.
Quote from: setravis on October 22, 2007, 06:17:51 PM
Quote from: kslifka on October 05, 2007, 04:21:11 PM
Gotta love this chart. I bought a couple of days ago...was pissed off yesterday.
Much happier today ;D
If you loved it then, you gotta love it now !
Getting the bounce off a 50% Fibonacci retracement...
kslifka, Applaud the pick...Nice work on your find !
52wk Range: 2.49 - 12.95
Volume: 2,649,100
Avg Vol (3m): 709,167
Market Cap: 174.21M
P/E (ttm): 39.08
EPS (ttm): 0.27
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
14.01%above 13-day MA
51.33%above 50-day MA
RS Rating: N/A
Fundamentals
Key Data:
Market Cap (M): N/A
P/E Ratio: N/A
PEG Ratio: N/A
Next Earnings: 11/08/2007
Last Analyst Rating: N/A
Thanks Setravis, but I sold CDS a week and a half ago....after it couldn't hold $12. But with earnings and chart looking good I may re-enter tomorrow.
Actually after the market decided to extinguish the "China Fire" over a week ago. I will be looking to get back in some of the China stocks that have pulled back. Fundamentally, I like ORS, TSTC, GFI and SDTH. More speculative China stocks I'm looking at are CTDC, GRRF and CNTF.
China Direct Raises 2007 Forecast (http://biz.yahoo.com/ap/071114/china_direct_outlook.html?.v=1)
"The company also expects 2008 profit of more than $20 million on revenue above $270 million."
$20 million in revenue for 2008 / 19.9 million shares outstanding = 2008 EPS of $1.00
$1.00 x 30 PE ratio = $30.00 stock price
not bad for a $10 stock...this is a home run ;D
$65.5 million in the 2008 acquisition pipeline with 51% stake equals $33.405 million net income from acquisitions. Plus $26 million in internal income equals 2008 income of $59,405,000. :o
2008 acquisition pipeline (http://www.cdii.net/storage/CDS_investor_presentation.pdf)
- Oil refinery company – newly built 300,000 ton oil storage facilities, revenues up to $300 million with $15 mm in net income
- Two Zinc processing companies – revenues up to $30 mm with 10 mm in net income
- 40,000 tons Magnesium facilities – revenues up to $130 mm with $26 mm in net income
- 20,000 tons Zinc refinery – revenues up to $60 mm in revenues with $12 mm in net income
- Software JV – revenues up to $10 mm with $2.5 mm in net income
I expect Q4 of 2008 to have a net income of $14,851,250. With 22,000,000 shares outstanding that gives an Q4 EPS of $0.67. Assuming no growth, 2009 EPS would be $2.68. With a 20 PE multiple that gives a stock price of $53.60. This is a very conservative estimate.
I agree with you that this looks very attractive on a fundamental basis.
I just hope I don't lose every cent I have in this downdraft we're in the midst of..
China Direct, Inc. to Web Cast Presentation at the Roth Capital Partners China Comes to Phoenix Conference on November 29, 2007 (http://biz.yahoo.com/prnews/071120/cltu008.html?.v=101)
BOCA RATON, Fla., Nov. 20 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today that its CEO, Dr. James Wang and COO, David Stein, will present at the Roth Capital Partners China Comes to Phoenix Conference held at the Royal Palms Resort and Spa, 5200 East Camelback Road, Phoenix, AZ 85018, on Thursday, November 29, 2007. The presentation will begin at 3:15 p.m. EST or 1:15 p.m. MST.
During the presentation, management will summarize the progress made by the company over the nine months of 2007, as well as provide management's overall outlook for 2008.
For shareholders and investors who are unable to attend the conference, a web cast of the presentation is available for you at http://www.wsw.com/webcast/roth14/cds/ starting at 3:15 p.m. EST or 1:15 p.m. MST on Thursday, November 29, 2007.
Shareholders and investors will have the opportunity to meet one-on-one with management while they attend the conference. If you would like to schedule a meeting with China Direct's management team, please contact Thomas Walsh of HC International at 212-398-3486.
In addition, Dr. James Wang, together with China Direct's investor relations team, will conduct a road show where they will have one-on-one meetings with numerous institutional investors starting November 26th to November 28th in the Dallas area and December 3rd to December 6th in the areas of San Diego, Los Angeles and San Francisco. If you would like to schedule a meeting with China Direct's management team while they are in the areas listed above, please contact Thomas Walsh of HC International at 212-398-3486.
Dutton Associates Announces Investment Opinion: China Direct Strong Buy Rating In Update Coverage By Dutton Associates (http://biz.yahoo.com/bw/071121/20071121005418.html?.v=1)
Wednesday November 21, 10:47 am ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of China Direct (AMEX:CDS - News) raising its rating to Strong Buy and a higher $15.52 price target. The 16-page report by Dutton senior analyst Stanley Ng is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
China Direct recently announced a very strong set of financial results for the nine months ended September 30, 2007, with total revenue of $116 million and total net income of $7.1 million. In 3Q 2007, China Direct recorded revenue of $44.6 million, up just 10% from $40.5 million in 2Q 2007 but net income surged 31% to $3.0 million from $2.3 million in the corresponding period. The financial results were above our revised estimates in our update report released in August. Looking ahead into 4Q 2007 and the year 2008, we see strong sustained growth at China Direct's consulting and magnesium divisions, which will be the core earnings drivers of the Company in the coming few quarters. China remains a major destination for many international investors and there are still ample opportunities for mergers and acquisitions ahead to help drive the consulting and magnesium divisions' prospects. We have significantly increased our net income forecasts for 2007 from $8.2 million to $10.5 million and those for 2008 from $14.1 million to $19.0 million. Our estimates for revenues for 2007 and 2008 have been raised from $157.9 million to $174.6 million and $294.7 million to $332.2 million respectively. Our diluted EPS estimates are now $0.60 in 2007 and $0.97 in 2008, up strongly from our previous estimates of $0.47 in 2007 and $0.67 in 2008. We have raised our 12-month target price from $12.00 to $15.52, and change our rating on the stock from a Strong Speculative Buy to Strong Buy.
Dutton said, "We have significantly increased our net income forecasts for 2008 from $14.1 million to $19.0 million".
CDS management said net income for 2008 will excede $20 million. So how can Dutton up guidance to only $19 million. Are they leaving room for another upgrade in a couple of months? Dutton also failed to mention the acquisition pipeline for 2008 which could add a additional $20 million or more to net income.
Magnesium prices have almost doubled. If this chart doesn't make you buy CDS then nothing will.
China Direct, Inc. to Web Cast Presentation at the Roth Capital Partners China Comes to Phoenix Conference on November 29, 2007
Tuesday November 20, 8:00 am ET
BOCA RATON, Fla., Nov. 20 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today that its CEO, Dr. James Wang and COO, David Stein, will present at the Roth Capital Partners China Comes to Phoenix Conference held at the Royal Palms Resort and Spa, 5200 East Camelback Road, Phoenix, AZ 85018, on Thursday, November 29, 2007. The presentation will begin at 3:15 p.m. EST or 1:15 p.m. MST.
During the presentation, management will summarize the progress made by the company over the nine months of 2007, as well as provide management's overall outlook for 2008.
For shareholders and investors who are unable to attend the conference, a web cast of the presentation is available for you at http://www.wsw.com/webcast/roth14/cds/ starting at 3:15 p.m. EST or 1:15 p.m. MST on Thursday, November 29, 2007.
Shareholders and investors will have the opportunity to meet one-on-one with management while they attend the conference. If you would like to schedule a meeting with China Direct's management team, please contact Thomas Walsh of HC International at 212-398-3486.
In addition, Dr. James Wang, together with China Direct's investor relations team, will conduct a road show where they will have one-on-one meetings with numerous institutional investors starting November 26th to November 28th in the Dallas area and December 3rd to December 6th in the areas of San Diego, Los Angeles and San Francisco. If you would like to schedule a meeting with China Direct's management team while they are in the areas listed above, please contact Thomas Walsh of HC International at 212-398-3486.
China Direct Webcast (http://www.wsw.com/webcast/roth14/cds/)
China Direct, Inc. Expands Metals Operations Through Definitive Agreement to Acquire Zinc and Lead Company in China (http://biz.yahoo.com/prnews/071129/clth058.html?.v=101)
Thursday November 29, 10:00 am ET
The Acquired Company to Become Wholly Owned Subsidiary
BOCA RATON, Fla., Nov. 29 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today that it has entered into a definitive agreement to acquire 100% of Xiangxi Autonomous Prefecture Jixiang Mining Industry Co., Ltd. ("Jixiang Mining"), a business operation which mines, processes and distributes concentrated zinc and lead. The acquired company will be renamed CDI Jixiang Metal Industry Co., Ltd. ("CDI Metal") as a wholly foreign owned entity.
The definitive agreement was reached concurrently with the Chinese local government approval for China Direct's sole ownership of CDI Metal. China Direct will acquire CDI Metal in exchange for cash consideration of approximately $675,675 (RMB 5 million). In addition, China Direct plans to invest up to $1.325 million in expansion capital after the acquisition.
CDI Metal owns the sole mining rights to a parcel of land located in the Yongshun Kaxi Lake Mining area. The mining rights were obtained from the Ministry of Land and Resources. The land holds both zinc and lead ore, and the government has approved for the mining of an aggregate of 10,000 metric tons of zinc and lead on an annual basis. CDI Metal has also received a safety and production permit issued by the Safety in Production Supervision Bureau which is valid through January 2009. The preliminary reporting from China Direct's engineers estimates that the zinc and lead reserves contained in the land covered by the mining rights are worth up to $54 million at current prices. China Direct plans to conduct a more detailed survey in the near future and intends to explore acquiring additional rights pending the results of that survey.
Zinc is primarily used for galvanizing steel against corrosion, die casting of intricate machine parts, and in batteries and other electrical applications. Zinc is also alloyed with copper to form brass. Lead is used in building construction, lead-acid batteries, bullets, solder, pewter, and fusible alloys.
Commenting on the agreement, Dr. James Wang, Chairman and CEO of China Direct, stated, "We are very excited with this new acquisition, as the areas in Yongshun County, Hunan Province have significant zinc, lead and other metal reserves. The acquisition of CDI Metal as a wholly owned subsidiary represents a significant milestone for the growth of our Zinc division in China. China is the largest producer and consumer of Zinc and Lead in the world and we are committed to realize the full potential of CDI Metal's mining rights and are confident that this subsidiary will make a substantial contribution to our financial performance in 2008 and beyond."
Has anyone listened to this webcast (http://www.wsw.com/webcast/roth14/cds/)? It has great information on the 2008 outlook. Management expects over $20 million in revenues which does not include acquisitions for 2008 so earnings could be much higher. 2008 revenues should be well over $1.00.
Good rxn to support, imo, but need more volume...opinions?
I bought some just before the close.
I get the sense the market is going gaga for these China stocks again. CHNR and CPSL today...
I figure CDS has just as good of fundamentals as either and there shouldn't be too much downside. What the heck..give it a whirl.
If she breaks 50 ma and falls below 8.75 or so I'll cut losses.
I played CDS during the China craze in early October...and have been looking to get into it since it does seem so undervalued. But I must admit that scares me...that such an undervalued stock isn't moving faster. (too good to be true. ???).
Anyway the chart looks good for a big pop after bouncing off the 50dma. ;)
It's hard to figure out just what kind of business CDS is actually in. The consulting part Original?) looks like it isn't panning out and now they are getting (heavily) into mining? David just talked about this the other day (on some other failed Chinese stock) and quoted someone else's term as "diwersification". Coincidenentally, I think the other company he talked about was also diwersifying into mining.
I looked at a filing briefly a couple weeks ago and it looked to me like there were probable conflicts of interest in the mining interests. That was as far as I went with it as I already saw red flags. I would say have to say to anyone buying this to be careful, but hope you make lots of dollars with it anyway.
Looks like a pennant has formed and the second leg up started today because of the increase in volume. According to the technicals for the pennant the stock should run above $18.00 within 8-12 weeks.
Sully-
Thanks for the heads up. I may just take a small gain here. I made such a killing on SOLF, I figured I might gamble on another one...fundamentals look good, and wall street is crazy sometime. I certainly didn't do the DD I usually would..
Quote from: bjc on December 06, 2007, 11:24:42 AM
Sully-
Thanks for the heads up. I may just take a small gain here. I made such a killing on SOLF, I figured I might gamble on another one...fundamentals look good, and wall street is crazy sometime. I certainly didn't do the DD I usually would..
No offense to sully but he didn't do his homework on CDS. The consulting part is not a revenue maker. The consulting part is to strictly convert the chinese companies into Gap audited companies for listing on the american exchanges. CDS buys majority stakes in other companies such as magnesium which is the big income for CDS. CDS eventually wants to spin off IPO's after they teach companies to run on there own. You should listen to the webcast I posted a couple of days ago.
Wallstreet-
Will do. I was actually coming to this thread to say I'm going to stick around and ignore digging deeper against my better judgment. It seems you have done quite a bit of good DD but I'll only feel right after I've done it myself.
Anyway, I was going to point out I'm holding because the chart is just too much to my liking. I'm a fundamentalist, but I still have a little technician in me. Nice uptick in MACD and nice volume today. 7% move today not too shabby. It is trying 10.50 right now...
Quote from: WallStreetnBio on December 06, 2007, 11:53:22 AM
Quote from: bjc on December 06, 2007, 11:24:42 AM
Sully-
Thanks for the heads up. I may just take a small gain here. I made such a killing on SOLF, I figured I might gamble on another one...fundamentals look good, and wall street is crazy sometime. I certainly didn't do the DD I usually would..
No offense to sully but he didn't do his homework on CDS. The consulting part is not a revenue maker. The consulting part is to strictly convert the chinese companies into Gap audited companies for listing on the american exchanges. CDS buys majority stakes in other companies such as magnesium which is the big income for CDS. CDS eventually wants to spin off IPO's after they teach companies to run on there own. You should listen to the webcast I posted a couple of days ago.
You're right Wallstreet, I didn't dig very deep into it. I stopped when I saw somethings about related parties in the filings on those mining interests.
At any rate, it does look set to move higher, and I might be wrong. Good luck with it.
Keep an eye on CDS with the China euphoria. It seems all a company needs is China in the name and any kind of impressive fundamentals and the market takes it and runs with it.
CDS is up about $1 and seems to be in the territory of really being able to take off like a rocket..
Not huge volume though. Leaving room for the big run tomorrow maybe... >:D
Came back Friday, chart still looks good. I'd rather not fall below the 50 ma and 20 ema though. That should act as some pretty strong support.
Just read those slides and right now I'm listening to the audio.
I'm convinced on CDS. They are expecting $54-64 mil in Q4 revs. They are expecting $3.5-4.5 mil in Net Income.
PERIOD ENDING 30-Sep-07 30-Jun-07 31-Mar-07 31-Dec-06
Total Revenue 44,577 40,453 30,939 13,501
31-Dec-07 Expected...$54-64 million.
PERIOD ENDING 30-Sep-07 30-Jun-07 31-Mar-07 31-Dec-06
Net Income Applicable To Common Shares $2,981 $2,268 $1,871 $557
31-Dec-07 Expected N.I.....$3,500 TO 4,500
Pretty impressive in my opinion. I understand that you think it is a bit sketchy Sully, but I believe this story.
The insiders selling is a bit concerning though. I'm just going to assume this Stein character needs some cash to buy a big new house.
Wall Street:
I'm going to exit CDS Monday.
Have you seen how many options these guys have waiting for them? At least 7 million, which is about 35% of the float. Now people are going to be more in tune to this upcoming dilution, and I think the share price will weaken.
This is complete bs in my opinion, I should've done better dd and realized this was the case.
I don't want to deal with continued dilution over the next however long. Good luck.
did you end up exiting? where did you see that these guys have 7 million in options? they own half the outstanding shares which is about 9 million shares. its in there best interest to increase the stock price. these guys are in this for the long haul. they have plans of building these companies up then spinning off IPO's while holding majority stakes. like EMC did with VMW. this will be the birkshire hathaway of China. its normal for management to exercise options. they have to be rewarded for sending the stock up. if the stock doesn't go up then they dont get to exersice options. i'll be with this stock for the next 4 years. if you can find better growth than this elsewhere let me know. good luck.
Wallstreet, hope you do well with CDS. I exited this morning near the low of the day at 10.33.
I'd just rather keep my money somewhere where I'm not going to be diluted. I agree, the growth is phenomenal, and I was totally hyped about this stock before I found out about the dilution.
Plenty of other stocks out there for me. But good luck!
China Direct, Inc. to Acquire Two Magnesium Companies (http://biz.yahoo.com/prnews/071219/clw032.html?.v=101)
Wednesday December 19, 8:28 am ET
New Joint Ventures to Add 40,000 metric tons of Annual Production Capacity
BOCA RATON, Fla., Dec. 19 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today it has entered into two letters of intent to create two new foreign invested entities in China. The new entities, based in Baotou, Inner Mongolia, China, will manufacture and distribute magnesium. Definitive agreements will be subject to the completion of financial audits, due diligence, and necessary government approvals.
The first joint venture, Baotou Xinjin Magnesium Co., Ltd. ("Xinjin"), will be 51% owned by China Direct. Xinjin currently has annual production capacity of approximately 7,000 to 8,000 metric tons and plans to distribute an additional 8,000 metric tons in 2008. China Direct expects to invest approximately $8.5 million in the form of working capital to increase annual capacity to 20,000 metric tons by the third quarter of 2008.
The second joint venture, Baotou Sanhe Magnesium Co., Ltd. ("Sanhe"), will be 51% owned by China Direct. China Direct expects to contribute approximately $7.5 million in the form of working capital to construct a magnesium facility with an annual production capacity of 20,000 metric tons. China Direct forecasts the facility will have 12,000 metric tons of annual capacity by June 2008 and an additional 8,000 metric tons of annual capacity by June 2009.
Management estimates that the two ventures will be at an annual manufacturing run rate of 32,000 metric tons in the second half of 2008. Management further estimates these two ventures, assuming an average price of $3,000 per metric ton, will contribute annual revenues of approximately $80 million and $130 million in annual revenues in 2008 and 2009, respectively.
Dr. James Wang, Chairman and CEO of China Direct, stated, "We continue to expand our magnesium division as we continue to see industry trends remaining favorable for the foreseeable future. We believe these additional magnesium facilities will possess certain key competitive advantages including the implementation of high temperature air combustion technology, also known as flameless combustion. This technology is designed to reduce furnace gas consumption and improve overall thermal efficiency. As a result, management believes overall production costs could be reduced by as much as 20%."
Dr. Wang concluded, "The acquisitions of Xinjin and Sanhe will increase China Direct's annual magnesium production capacity to approximately 75,000 metric tons by the end of the third quarter of 2008. Furthermore, we expect to distribute approximately 50,000 to 60,000 metric tons of magnesium in 2008. With the addition of Xinjin and Sanhe, we believe our overall magnesium division sales will exceed 100,000 metric tons of magnesium in 2008, solidifying our position as a global leader in this industry."
New short data out 1,029,100 shares short. float is 11,650,000. average volume is 223,700 shares.
shorts, good luck covering 1,029,100 shares in a small float when the average volume is only 223,700. squeeze is near.
China Direct's Subsidiary Reports Results of Comprehensive Independent Testing of New Tire Recycling Machinery Line (http://biz.yahoo.com/prnews/080109/clw037.html?.v=101)
Wednesday January 9, 8:00 am ET
Testing and Results Monitored by Shandong Province Government Agencies
BOCA RATON, Fla., Jan. 9 /PRNewswire-FirstCall/ -- China Direct, Inc. (AMEX: CDS - News), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, today announced that its majority owned subsidiary, CDI Wanda New Energy Company, Limited ("CDI Wanda") reported the results from a comprehensive testing monitored by the Science-Tech Bureau of Shandong Province of the main equipment used in its proprietary automatic tire cracking machinery line. This proprietary cracking line processes used tires to produce fuel oil, steel scrap and carbon soot for industry use through CDI Wanda's proprietary production system.
According to the report, the machinery performed successfully throughout four major test intervals and met all established benchmarks for performance in the study design. The tests focused on the two main categories of processing capacity and production yield. The testing runs were done in four separate time intervals of 8, 12, 24 and 48 hours. The output was monitored for pollution standards as well as to the quality of end products produced.
The performance results for processing capacity indicated that in its present configuration the equipment is capable of processing 626 kilograms of tires per hour or 15.02 metric tons per day as measured in the 48 hour continuous tests. At that processing rate, the production yield of fuel oil by weight was approximately 44.9% or 6.75 metric tons per day. Steel wire and carbon soot represented 6.65 metric tons as a byproduct of the process on a daily basis of which steel would represent up to 15% of the processing yield dependent upon the configuration of the processed materials. The carbon soot was of the quality necessary to be processed into active carbon to be reused in rubber manufacturing and water treatment. The fuel oil was inspected and analyzed by Shandong Institute of Product Quality Supervision and Inspection and each index of the distillated fuel oil was found to be in line with the industry standard (SH/0356-1966 fuel oil 4# light).
Another component of the testing was emissions, which was monitored by the Shandong Environment Monitoring Centre Station. The emission concentration of the major pollutants released during the testing was found to be within the national secondary standard for air pollutants.
Commenting on the event, Dr. James Wang, Chairman and CEO of China Direct stated, "As a result of these positive test results, management of China Direct believes that this technology has vast environmental and economic possibilities and we fully intend to expand the use of this machinery. The environmental problem of waste tires throughout the world has been well documented and this technology not only provides a potential solution, it provides a viable recycling application that produces three re-marketable end products. We are more confident than ever that this technology will provide our company with a significant source of revenue and income in the coming years, as we prepare to enter the tire recycling industry in addition to manufacturing and distribution of tire recycling equipment."
The dilution kills this stock. When people realized there was 35% more dilution ready and waiting nobody wanted to touch this stock. The growth is there but who wants their action diluted??
they can dilute 1.9 million more shares if they need the cash. they have 17 million in cash on the balance sheet as of last quarter so i doubt they will dilute shareholder value anytime soon. if they do issue more shares i trust management does it for acquiring growth.
(11/14/2007)
"As we head into 2008, we preliminarily see our current revenues exceeding $270 million with net income exceeding $20 million. This outlook, which is not inclusive of any additional acquisitions, will be reviewed and updated at the time of our 2007 year end results."
(http://biz.yahoo.com/prnews/071114/clw032.html?.v=101)
(11/21/2007)
Dutton Associates Coverage of China Direct:
China Direct Raised to Strong Buy Rating In Update Coverage; Raising Revenue and EPS Estimates For 2007 and 2008; Raising Target Price
Target Price: $15.52
(http://www.duttonassociates.com/research/chnd/reports/cds_report_112107.pdf)
(11/29/2007)
Additional Acquisitions
China Direct, Inc. Expands Metals Operations Through Definitive Agreement to Acquire Zinc and Lead Company in China
(http://biz.yahoo.com/prnews/071129/clth058.html?.v=101)
(12/19/2007)
China Direct, Inc. to Acquire Two Magnesium Companies
"Management further estimates these two ventures, assuming an average price of $3,000 per metric ton, will contribute annual revenues of approximately $80 million and $130 million in annual revenues in 2008 and 2009, respectively." (http://biz.yahoo.com/prnews/071219/clw032.html?.v=101)
(1/9/2008)
"According to the local development and reform commission, Baotou Xinjin Magnesium Company and US-based China Direct Inc. have jointly invested in the project with an annual production capacity of 120,000 tons of magnesium and magnesium-based alloy. Construction of the project is scheduled for completion within four years. Upon the completion, the annual output value is expected to reach 3.2 billion yuan, with profit reaching 730 million yuan."
(http://www.tradingmarkets.com/.site/news/Stock%20News/970033/)
There are currently about 20 MM shares outstanding on a fully diluted basis.
Updated chart...
...the video that sparked today's run:
http://www.thestreet.com/_yahoo/video/10401818/index.html?cm_ven=YAHOO&%3bcm_cat=FREE&%3bcm_ite=NA#10401818 (http://www.thestreet.com/_yahoo/video/10401818/index.html?cm_ven=YAHOO&%3bcm_cat=FREE&%3bcm_ite=NA#10401818)