China Direct's Management Sees No Operational Reason for the Recent Decline in the Price of Its Common Stock
10 September 2008 - 3:19AM
PR Newswire (US)
Reiterates Net Income Guidance for 2008 DEERFIELD BEACH, Fla.,
Sept. 9 /PRNewswire-FirstCall/ -- China Direct, Inc. (NASDAQ:CDS),
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, commented today in response to
numerous inquiries from its shareholders regarding the recent
decline in the price of China Direct's common stock. Management
reaffirms its year end net income performance guidance.
Furthermore, management is presently unaware of any significant
fundamental changes in its business operations. While the current
global environment for commodities has become more challenging,
management believes the company is well positioned in magnesium and
sees the overall market price for magnesium stabilizing as any
disruptions in the market for magnesium related to the Olympics
subside with long term pricing and demand trends remaining
favorable. In addition, our magnesium segment markets to a
relatively stable customer base across a broad group of industries
based on a blend of contract pricing for long term to short term
delivery schedules which have predetermined pricing agreements.
While any spot price sales are subject to the prevailing market,
management does not anticipate any significant deviation of pricing
or delivery terms from contracts in place for the remainder of
2008. Management also sees a continued favorable environment for
its consulting segment and is pleased with its progress in
attracting new and more substantial companies to its base of
consulting clients. The recent addition of China Armco Metals,
which raised over $7.5 million this August to move forward with its
scrap metal recycling project as well as Sunwin International,
which recently acquired a majority stake in a company that sells
organic animal feed and fertilizers, valued at $6.2 million,
demonstrates our ability to assist growing companies in one of the
most challenging equity environments in recent memory. Senior
management is currently in China as part of its routine review of
current operations and to explore potential acquisition
opportunities. Management believes the acquisition landscape is
improving as this challenging global environment has slowed the
investment pace of foreign capital into China, especially in the
small to medium sized companies. This creates a very favorable
environment for our company which has a strong balance sheet and
the ability to capitalize on those opportunities. The China Direct
model enables our company to deploy resources into growth areas at
attractive valuations that we believe will enable us to grow
substantially within a segment and adjust our concentration in
those segments as needed. About China Direct, Inc. China Direct,
Inc. (NASDAQ:CDS) is a diversified management and advisory services
organization headquartered in the U.S. Our management services
division acquires a controlling interest in entities operating in
China. Our ownership control enables China Direct to provide
management advice, as well as financing to Chinese entities. This
infrastructure creates a platform to expand business opportunities
globally while accessing the U.S. capital markets. Our advisory
services division provides comprehensive advisory and consulting
services to Chinese entities seeking to access the U.S. capital
markets. As a direct link to China, China Direct serves as a
vehicle allowing investors to directly participate in the rapid
growth of the Chinese economy in a diversified and balanced manner.
For more information about China Direct, please visit
http://www.chinadirectinc.com/ . DISCLOSURE NOTICE: In connection
with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, China Direct, Inc., is hereby
providing cautionary statements identifying important factors that
could cause our actual results to differ materially from those
projected in forward-looking statements (as defined in such act).
Any statements that are not historical facts and that express, or
involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but
not always, indicated through the use of words or phrases such as
"will likely result," "are expected to," "will continue," "is
anticipated," "estimated," "intends," "plans," "believes" and
"projects") may be forward-looking and may involve estimates and
uncertainties which could cause actual results to differ materially
from those expressed in the forward-looking statements. These
statements include, but are not limited to, our expectations about
our future success, the success of our advisory board, and our
ability to identify and close acquisitions of operating companies
in China in a cost effective manner that enhance our financial
condition. We caution that the factors described herein could cause
actual results to differ materially from those expressed in any
forward-looking statements we make and that investors should not
place undue reliance on any such forward-looking statements.
Further, any forward- looking statement speaks only as of the date
on which such statement is made, and we undertake no obligation to
update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to
reflect the occurrence of anticipated or unanticipated events or
circumstances. New factors emerge from time to time, and it is not
possible for us to predict all of such factors. Further, we cannot
assess the impact of each such factor on our results of operations
or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in
any forward-looking statements. This press release is qualified in
its entirety by the cautionary statements and risk factor
disclosure contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the year
ended December 31, 2007 and our reports on Form 10-Q. DATASOURCE:
China Direct, Inc. CONTACT: Investor Relations, James Kautz, , or
Todd Atenhan, both of EPOCH Financial Group, Inc., +1-404-806-1393;
Company, Richard Galterio, Executive Vice President of China
Direct, Inc., +1-877-China-57, Web site:
http://www.chinadirectinc.com/
Copyright
China Direct (MM) (NASDAQ:CDS)
Historical Stock Chart
From Jul 2024 to Jul 2024
China Direct (MM) (NASDAQ:CDS)
Historical Stock Chart
From Jul 2023 to Jul 2024