few days ago, yesterday one million shares of the company were sold, which is approximately five times higher than its average traded volume.
The recent stock promotion of China Direct could not stop the heavy trading volume yesterday, which made the price of the stock go down. It looks like investors are not much enthusiastic about the stock. A fact, contradictory to the analysts’ opinion about an eventual bullish trend for CDII.[BANNER]
China Direct Industries, Inc. is a U.S. owned holding company, operating in China in two core business segments, pure magnesium production and distribution of basic materials. Over the past month, the company has released a few positive announcements on its new contracts and advisory services. The latest news by CDII was on its this year’s third quarter results, which are to be discussed tomorrow.
The historical background of China Direct shows that the company has traded higher during the past 12 months, when the price reached $2.67 per share. Though, since the beginning of the year, it started to fall down and it is currently over 100% lower.
During the second half of this year, CDII’s revenue and gross profit have increased as compared to the previous quarter. According to the report, at the end of March China Direct had $37.9 million of working capital, including $15.1 million in cash and cash equivalents, which the company believes should be sufficient for its current operations. However, CDII expects to seek additional capital to finance the expansion of its magnesium production holdings and commodity trading business. The company relies strongly on the magnesium products to bring in higher revenues in future.
