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Sunday, 07/01/2012 2:45:16 PM

Sunday, July 01, 2012 2:45:16 PM

Post# of 72024
APS promo candidate? Your opinions please and if this is posted inappropriately on this board or perceived as a pump, please feel free to delete. You guys are the experienced penny traders and I respect your opinions so...

I found this company (CDII) playing with the Yahoo screener using following criteria: P/S < 5, P/E <10 and 5yr EPS growth > 50%. Sorting the results brought this stock to the top. It's a diversified American company operating mainly in China and there primary business is magnesium which is critical to industry. Not a Mickey Mouse outfit; alone, they produce more than the entire US. Website is here--

http://www.cdii.net/

Googling CDII revealed interesting results: super low P/E, no debt, a hoard of cash, plenty employees, real earnings, it's selling for 19% of book value, etc, etc. They've recently bought two more Mg producing companies. It's very “un-penny-like” and I was surprised to learn that some analysts actually follow this. Jaywalk Consensus on my TDA acct rates it as a hold (2buy, 1 hold, 1sell) and it's mentioned in Seeking Alpha.

http://seekingalpha.com/article/607731-6-high-growth-services-stocks-hoarding-money


The company is not without warts. When the price fell below a buck last year some insiders bought and tried to manipulate the price. Early this year, NASDAQ indicated that they were considering delisting the stock due to the price and the pps plummeted on the news. The hearing was already held, results will be out w/in days and the stock will probably go to the OTCBB. It has been trading in the .30s with low volume ever since delisting was mentioned.

My point: it dawned on me that this might be a great promo candidate for an outfit like APS; sort of a win, win, win thing. The company has more 'cred' than the typical promoted companies, it seems a decent buyout prospect if nothing else, it isn't going away and is head and shoulders above the usual flakey outfits that get promoted. I feel that it would enhance the image of the promoter, the company could really use the attention and “bagholders” would still have hope.

Your thoughts as a promo candidate? Also, what am I missing? Promo aside, should I just buy it now and wait patiently? There seems to be little downside, the delisting is already priced in and, if it only sells at book value down the road, should be near $2.


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