Tsafi

[utcheevis]

Well, well, well, I revisit my old friend right before earnings yesterday CDS @ 8.50 and they come out with earnings from out of this world. I woke up early to look at the earnings that are just out @ 8am and WOW! Nice pop to 11 bucks PM!! I'm holding again this time. Last time I held this one from 3.20 to almost 10 bucks so CDS (old CHND.bb) has been my stock of the year by far. Weeeeeeee lol


China Direct Reports Record Financial Results for the Third Quarter of 2007 and Raises Net Income Guidance for the Remainder of Fiscal 2007
Wednesday November 14, 8:00 am ET
- 3rd Quarter Revenues reach $44.5 million
- 3rd Quarter Fully Diluted Earnings per Share reaches $0.16
- Total Assets Increase to $57.9 million
- Shareholder Equity Increases to $26.9 million


BOCA RATON, Fla., Nov. 14 /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, announced today the Company's financial results for the third quarter of 2007 ended September 30, 2007.
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Financial Highlights:

Revenues for the third quarter ended September 30, 2007 increased to $44,577,025 as compared to revenues of $96,575 in the third quarter ended September 30, 2006. The increase in revenues was mainly attributable to the three companies acquired in China since October 2006, Chang Magnesium, Lang Chemical and CDI Wanda Alternative Energy, as well as a strong performance from our consulting division.

Gross profit for the third quarter of 2007 was $4,790,282 as compared to a loss of ($102,338) in the third quarter ended September 30, 2006. Total operating expenses for the third quarter of 2007 increased to $1,115,513 compared to $255,833 in the third quarter of 2006. The increase in operating expenses in the third quarter of 2007 reflects the continued increases to staffing in the U.S. and our management offices in China associated with the financial management and integration of our expanding operations in China. The company also experienced increases in travel expenses, professional consulting fees, professional insurance premiums, as well as non-cash option charges for employees, management, and professional advisors.

Net income for the third quarter of 2007 increased to $2,980,577 or $0.18 per basic share, as compared to a loss of ($202,534) or a loss of ($0.02) per basic share for the third quarter of 2006. On a fully diluted basis, earnings per share for the third quarter of 2007 were $0.16 per share as compared to a loss of ($0.02) per share for the third quarter of 2006. Additionally, net income was up 31% sequentially from the second quarter of 2007.

Revenues for the nine months ended September 30, 2007 increased to $115,968,935 as compared to revenues of $483,407 in the nine months ended September 30, 2006.

Gross profit for the nine months ended September 30, 2007 was 11,972,797 as compared to $135,700 for the nine months ended September 30, 2006. Total operating expenses for the first nine months of 2007 increased to $2,800,439 as compared to $1,109,173 for the nine months ended September 30, 2006.

Net income for the first nine months of 2007 increased to $7,119,188 or $0.49 per basic share as compared to a loss of ($387,831) or a loss of ($0.04) per basic share for the first nine months of 2006. On a fully diluted basis, the earnings per share for the first nine months of 2007 were $0.44 per share as compared to a loss of ($0.04) per share for the first nine months of 2006.

Balance Sheet:

As of September 30, 2007, total assets were $57,919,175, an increase of 178% from $20,835,405 as of December 31, 2006 and an increase of 55% from $37,263,534 as of June 30, 2007. As of September 30, 2007, shareholder equity reached $26,885,527, an increase of 358% from $5,864,324 as of December 31, 2006 and an increase of 115% from $12,526,930 as of June 30, 2007. As of September 30, 2007, cash and cash equivalents was $17.35 million and working capital was approximately $29.99 million, compared to cash and cash equivalents of $3 million and working capital of approximately $6.8 million as of December 31, 2006, respectively.

2007 Financial Guidance:

As we continue to see strong performance from our subsidiaries and our new joint venture operations continue to come on line in the 4th quarter, we anticipate our 2007 year end revenue will range between $170 and $180 million. We are raising our 2007 year end net income guidance from $9.5 million to a range of $10.5 to $11.5 million. Management evaluates its outlook as necessary and will communicate any changes in its business outlook on a quarterly basis or when appropriate.

2008 Financial Guidance:

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.

Marc Siegel, President of China Direct, stated "We continue to be very pleased with the financial performance of our four segments during the first nine months of 2007. Having just returned from China, we anticipate the new joint ventures will provide a significant contribution to our financial results in the fourth quarter of 2007. We have begun to see the effects of our efforts to increase operating margins and expect those trends to continue. We remain focused on adding capacity while increasing current utilization of our existing manufacturing operations. Our recent cash infusion from the exercise of outstanding warrants, coupled with our AMEX listing, places our company in the best position in its history to execute on our plan of internal growth and strategic acquisitions in China. We believe 2008 will be another year of tremendous growth for China Direct and its shareholders."

China Direct Conference Call to discuss the Company's financial results for the Third Quarter of 2007 ended September 30, 2007.

The conference call will take place at 4:30 p.m. EST on Wednesday, November 14, 2007. Anyone interested in participating should call 1-800-936-9754 if calling within the United States or 1-973-935-2048 if calling internationally approximately 5 to 10 minutes prior to 4:30 p.m. Participants should ask for the China Direct 2007 Third Quarter Financial Results conference call. There will be a playback available until November 20, 2007. To listen to the playback, please call 1-877-519-4471 if calling within the United States or 1-973-341-3080 if calling internationally. Please use the pass code 9081157 for replay.

This call is being webcast by ViaVid Broadcasting and can be accessed at China Direct's website at http://www.cdii.net. The webcast may also be accessed at ViaVid's website at http://www.viavid.net. The webcast can be accessed through November 30, 2007 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp