CHDO.OB.

[eliteG]

CHDT(otcbb) - China Direct Trading Corp.

Mkt Cap:                                43.99M
Shares Outstanding:                548M

Profile:


Company Website[/url]


What makes this stock "On Fire"?

An amazing quarter, huge sales growth, roof-tile product just made it through testing with high grades, hurricane season, near all time high on high sustained volume... this stock is ready to run.  Check out the recent news:

China Direct Trading Corporation Reports First Quarter FY2006 Results
Monday May 15, 8:47 am ET
Q1 FY2006 Revenue Increases 1229% Over Q1 FY2005 Results On Cash Basis; Total Generator Contract Sales Orders In Q1 FY2006 Hit $4,219,220
http://biz.yahoo.com/iw/060515/0129191.html

""China Direct is in an exceptionally stronger financial position now than in FY 2005 -- revenues are growing at an accelerating rate, our cash position is solid, and receivables are growing with final generator delivery and contract completion," said Howard Ullman, CEO/President of China Direct. "In Q1, we had much higher costs in association with completing the acquisition of CPS and we will continue to strive to drive cost efficiencies to hasten increased profitability. Based on current sales, we expect to see a continuing acceleration of generator sales activity through the second quarter of FY2006.""

China Direct Reports $4.8 Million in April & May 2006 Generator Sales Contracts a 3,800% Increase over 2005 Sales
Wednesday June 7, 7:35 am ET
Results for First Two Months of Second Quarter Exceed Entire First Quarter Contracted Generator Sales
http://biz.yahoo.com/prnews/060607/nyw051.html?.v=53

CPS (http://www.completepower247.com) is a majority-owned subsidiary engaged in turnkey solutions for standby commercial and residential power generation.

"Consumer demand continues to run high for Complete Power Solutions' generators and we have invested in the inventory and installation personnel qualification that will enhance CPS' ability to fill generator sales contracts in a timely manner," said William Dato, CPS President. "CPS proprietary pre-formed low-vibration generator slabs have proven to be an extremely popular sales item to other standby power providers," he added."

China Direct Clay Roof Tiles Pass All Tests with Superior Results
Monday June 26, 8:38 am ET
No-Maintenance Glaze Imported Clay Tiles Offer Superior Strength and Style
http://biz.yahoo.com/prnews/060626/nym134.html?.v=53

"Upon receipt of Dade County's NOA the company can then sell tiles in Dade and Broward Counties where homeowners are waiting one year for tile deliveries. At current production capacity OBS can deliver up to 2.5 million tiles per month at an average price of $2.00 each."


Technicals
We wouldn't even look at the freat fundamental story for this penny if it didn't have good technicals.  Lucky for us the technicals look amazing.  

All History Chart  - On the ALL-History Weekly Chart you can see that CHDT is about to attack its all time-highs.. and volume has come in strong to back this move.



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7-month Chart   - On the 7-month daily chart you can see we are picking up CHDT at ascending channel support.  Support is coming in from rising moving averages.  Volume is heavy and steady.. and ripe for creating a price explosion.




We will buy CHDT on Wednesday 6/28

[capricho]

For more information on this company go to: http://www.chdt.us/

Basically, this company is engaged in three products: glazed clay roof tiles; generators; and souvenirs. The roof tiles and generators are basically knock-off's of other products at probably Wal-Mart like dirt-cheap prices. I was not able to get to the souvenire web link since the page didn't seem to work. Is this a bad sign?

I looked at their roof tiles, and sorry, but I really don't see this product taking off here in the U.S. Most roof tiles sold in the U.S. are either asphalt shingles or unglazed concrete tiles. Glazed clay roof tiles are really a specialty product.

With the price of this stock being so cheap I'm sure it will have a great run with some hype, but long term, I doubt there will be much to write home about unless the holding company expands its product line to include other consumer goods than specialty or niche items.

[tokyopua]

Got in at 0.084 this morning.  Nice little run to close at the HOD on higher volume, nice way to start the first day with this stock.  Nice also to see a new hot penny back in the 3SOF portfolio 

[eliteG]

Got in at 0.084 this morning.  Nice little run to close at the HOD on higher volume, nice way to start the first day with this stock.  Nice also to see a new hot penny back in the 3SOF portfolio 

Nice buy Toky  ..  that momentum at close was very interesting! 

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update CHDT:

We bought into CHDT today and the stock had a strong close as volume started coming in.  Always nice to start the trade off with a gain.  We also had this news item:

China Direct to Be Featured on MN1.com Interview
Wednesday June 28, 9:31 am ET
http://biz.yahoo.com/iw/060628/0139983.html

[/b]

Everyone is excited to hear exactly how good this quarter is going.. and about future plans for CHDT... perhaps the CEO will discuss this on Friday. 

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Position: bought CHDT @ 0.085 on 06/28/2006
Order: Hold
Exit: n/a
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[eliteG]

update CHDT:

Crazy day for CHDT as it started of the morning with a gap up because of this news:

China Direct to Launch New Complete Power Subsidiaries in Miami and Naples, Fl
Thursday June 29, 7:55 am ET
Chairman Loans $250,000 for Quick Expansion
http://biz.yahoo.com/iw/060629/0140360.html

The stock proceeded to its all time high and channel resistance @ .105 on heavy volume(up volume eclipsed down volume) but then retreated to close even for the day on light volume.

The perspective we can take on this is CHDT is seeing heavy volume near its all-time high.. 1st attempt was rejected.. but this doesnt mean we wont have a 2nd attempt be successful.  In fact these kind of moves can betray an eager buyer.. perhaps we will see another attack on the high with the CEO interview tomorrow?

Personally I believe that CHDT is 1 of the 2 strongest penny stocks out there right now(XKEM being the other one).  CHDT has enormous sales growth.. the stock in my mind is at least a double without much work.. but if the proper components fall into place we could run for $1(over 5 bagger) and another exchange. 

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Position: bought CHDT @ 0.085 on 06/28/2006
Order: Hold
Exit: n/a
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[eliteG]

update CHDT:

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Position: bought CHDT @ 0.085 on 06/28/2006
Order: Hold
Exit: n/a
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[eliteG]

update CHDT:

Great Interview from the current CEO!  The following link will allow you to listen to the mn1 interview in mp3 format.
http://www.mn1.com/mp3/CHDT.mp3


This news is very promissing $$$ 
http://biz.yahoo.com/iw/060703/0141085.html

China Direct Seeking to Expand Generator Subsidiaries Outside of Florida
Monday July 3, 7:20 am ET
[/b]

COOPER CITY, FL--(MARKET WIRE)--Jul 3, 2006 -- China Direct Trading Corporation (OTC BB:CHDT.OB - News) announced recently the expansion of its power generator sales operations into Miami and Naples/West Florida with two new sales operations. The expansion is prompted by the strong sales performance of CHDT Complete Power Solutions (CPS) power generator sales operations in the northern Miami region. The new operations will be open in the upcoming weeks. CPS will provide sales, product, and engineering support to the new operations.


Howard Ullman, China Direct CEO & President, said, "CPS is on track to generate a projected $20 million in gross revenue for FY2006 from its current base territory of two South Florida counties. The new Miami operation will expand our market reach from South Broward to Dade and Monroe counties and new Naples/West Florida operation will cover the Florida West Coast from Naples to Ft. Meyers. We have developed a solid and proven sales model and we will continue to expand our operations throughout the state of Florida followed by expansion into other states. Currently, we are endeavoring to open a sales operation in California, Mississippi, New Jersey, Virginia, Maryland, Pennsylvania and the Washington, D.C. metropolitan region, which has two of the richest (per-capita) counties in the nation and a steady economy anchored by the Federal Government. We are enthused with the opportunity to expand our market and enjoy the economies of scale and the dynamics inherent in an expansion at this level."

CHDT will own 60% percent of each of the new operations with licensees owning the remaining 40% and financing the startup. CHDT will consolidate 100% of all financials of its subsidiaries. CPS (www.completepower247.com) is a majority-owned China Direct subsidiary engaged in turnkey solutions for standby commercial and residential power generation. For more information from China Direct on becoming a licensee contact Rich Schineller at 941-918-1913 or [email protected]:

China Direct (www.chdt.us) is a holding company engaged through its operating subsidiaries in the following business lines: Overseas Building Supply (OBS) is engaged in manufacturing, distribution and logistics of building materials including but not limited to generators, roof tiles, interior doors, and insulation materials. CPS, (www.completepower247.com) is a majority-owned subsidiary engaged in a turnkey solutions for standby commercial and residential power generation. Souvenir Direct Inc. (SDI) (www.souvenirdirect.com) is engaged in product development, manufacturing, distribution, logistics and product placement into mass retail of souvenir and gift items in 29 countries. None of the web site URLs listed in this press release are incorporated into or are part of this press release.

FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on China Direct's and its subsidiaries' managements' current expectations and assumptions, and involve risks and uncertainties. Such expectations and assumptions may prove to be faulty or incorrect. Actual results may differ materially from those anticipated results set forth in the statements. The forward-looking statements may include statements regarding possible expansion of markets, sales projections, prospects of new operations, future consumer demand, future product orders, product development, product potential or financial performance. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. China Direct undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release and risks associated with any investment in China Direct, which is a "penny stock" company, should be evaluated together with the many uncertainties that affect our business, particularly those mentioned in the cautionary statements in current and future China Direct SEC Filings, which statements we incorporate by reference herein.


Contact:

     Contact:
     Rich Schineller
     941.918.1913
     [email protected]

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Position: bought CHDT @ 0.085 on 06/28/2006
Order: Hold
Exit: n/a
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[tokyopua]

http://biz.yahoo.com/iw/060706/0141711.html

Projected Q2 revenues up 2300%, making CHDT a stock EN FUEGO this morning!

[tokyopua]

Yeaaaahhhh Baby!   CHDT has gone loco crazy on fire now on mucho grande volume!!! 

I kept holding a nice sized core position, but also had a trading position because the channel seemed so well defined.  Sold that on Friday at HOD .103 and patted myself on the back, but wish now I had seen this breakout coming lol and held that smaller position too.  But still, very very happy with this.

EliteG, you said there would be new hot pennies to come, and you delivered, applause to you!!!

[jorgegr]

I'm out for the time being.Just sold will wait to reenter
Thx Elite G for this thread

jorgegr

[eliteG]

Yeaaaahhhh Baby!   CHDT has gone loco crazy on fire now on mucho grande volume!!! 

I kept holding a nice sized core position, but also had a trading position because the channel seemed so well defined.  Sold that on Friday at HOD .103 and patted myself on the back, but wish now I had seen this breakout coming lol and held that smaller position too.  But still, very very happy with this.

EliteG, you said there would be new hot pennies to come, and you delivered, applause to you!!!

Thanks toky  - CHTD looks to be a monster now with a blue-sky breakout... solid fundamental backing.. pure fire! 

I'm out for the time being.Just sold will wait to reenter
Thx Elite G for this thread

jorgegr

I hope you get a chance to re-enter jorgegr  .. great trade!


update CHDT:

The market is now becoming aware of CHTD potential!  Power move today that broke the stock into blue-sky territory.  This means that there is no over-head resistance, no unhappy investors and a heck of a lot of momentum.  This move is financially backed:

China Direct Projected First Six Months Revenue Top 11,000,000
Monday July 10, 7:20 am ET
Contracted Sales Up 2300% Over 2005 Same Period Sales
http://biz.yahoo.com/iw/060710/0142431.html

COOPER CITY, FL--(MARKET WIRE)--Jul 10, 2006 -- China Direct Trading Corp. (OTC BB:CHDT.OB - News) today announced preliminary top line revenue for the first six months of 2006 ended June 30, 2006 of $11 million, an increase of over 2300 percent as compared to revenue of $465,000 reported for the first six months of 2005.

First six months 2006 results include $10,750,000 from the sale of power generators by Complete Power Solutions, LLC, a China Direct majority-owned subsidiary, (CPS). China Direct consolidates 100% of CPS' financial results into China Direct's SEC reported financial results. Actual financial results for this period may vary based on auditor and other adjustments to the final, SEC-reported financial results.

"China Direct is implementing on our vision and we are pleased with the outstanding progress our operating subsidiaries have made in terms of sales. For the second half of the year we look forward to seeing our new subsidiaries add to our revenue growth such as Overseas Building Supply with roof tiles and new Complete Power Solutions subsidiaries," said Howard Ullman, CEO/President of China Direct....

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Position: bought CHDT @ 0.085 on 06/28/2006
Order: Hold
Exit: n/a
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[stocky]

Good trade elite.

[elliemae]

thinking of buying CHDT, should I wait for it to pull back?

[eliteG]

Good trade elite.

thx stocky 

thinking of buying CHDT, should I wait for it to pull back?

Hi elliemae - I think CHDT can be a monster-mover now since there is potential for huge expansion on the business front.  With such a powerful candle and volume(and perhaps another news release).. a > 100% move is possible even tomorrow.  Very difficult to value a company with such potential:

1.  Current generator sales growing
2.  New propane based generators(may be 1st to market.. safer, quieter)
3.  Expanding generator business out of Florida(current numbers are just Florida)
4.  Roof Tiles will start to create a huge revenue stream(these should be high margin) 
5.  If we hear any news about a hurricane.. CHDT could explode.

So pullbacks should be very buyable.. but most likely tomorrow will see a gap up open - ok to buy if you are very very strict with your stop.  Lets not kid ourselves... this is a penny stock and one always needs to be careful(about dilution) but it is very rare.. and quite a gift to catch one in blue-sky territory.  These are the ones with potential to move exchanges.. and become bigger cap names.

[buddjas1]

I hope that a lesson was learned from CHID and GV and that 3SOF sets a trailing stop for CHDT.