In another example of China sucking up the mineral and energy resources of the world. China Direct Industries, Inc. (CDII:NASDAQ) sees a future of growth.
The company produces and sells magnesium to the Middle Kingdom. Two days ago they announced that annual forecasts were back on the menu. The scales have fallen off their eyes and the company can now see the future. Needless to say, the future looks good.
China Direct now expects full-year 2010 revenue of $130 million to $150 million. And surprise, surprise, this is in line with the consensus target of $145.3 million.
China Direct has a market cap. of $58 million and a price to sales of 0.29 (which is low). They have $19 million in cash and $2.8 million in debt.
Over the past three years Magnesium has climbed from $0.60 per pound to $2.00 a pound today. I haven’t done any real due diligence on it but it looks like a buy on a pull back. Put it on your radar.
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