Replies to post #98400 on Value Microcaps Motherboard

[northenlightsk05]

RE: CDS. It is possible for earning of 0.23 per share for Q4/07. My estimation is even higher than that, as high as 0.25 per share.

I talked to CEO and the price structure for magnesium is as followed:

1) For Q4/07, 80% long term contract and 20% spot price.

(2) For Q1/08, 60% long term contract and 40% spot price

(3) For 2008, the target is 50% long term contract and 50% spot price.

More than 50% revenue from magnesium. They made $45 million revenue in Q3/07. Magnesium price was up 33% on average in Q4 compared with Q3, and up 60% Q1/08 compared with Q3/07. Taking these into consideration, Q4 earning could be 0.25 as compared with 0.18 for analyst's estimation. Q1/08 earning could be much higher than that of analyst' estimation. I think that CDS will need to increase their earning guidance for 2008 considering very strong magnesium price so far this year and the big increase in production increase of magnesium.