3SOF

China Direct's Subsidiary Reports Results of Comprehensive Independent Testing of New Tire Recycling Machinery Line

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."


(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


(11/29/2007)
Additional Acquisitions
China Direct, Inc. Expands Metals Operations Through Definitive Agreement to Acquire Zinc and Lead Company in China


(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."

(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."


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