This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Direct Industries Inc. F2Q10 (Qtr End 03/31/2010) Earnings Call Transcript

In our consulting segment, we had a particularly strong performance with revenue up over 200% from the same period in 2009, and I would like to highlight several accomplishments in this area.

First, we assisted [China Encore Metal] in achieving an uplifting to the [NYSENX]. Our ongoing relationship with this client and their strong performance, enabled us to record a $2.1 million realized capital gain in the quarter from the sales securities we had received as compensation for our consulting efforts, in addition to our normal consulting fees.

Second, Sunwin International received FDA, Generally Accepted Safe Status, on five grades of it’s all natural zero calorie CBS sweetener. Sunwin now has more grades of CDO approved for the food and beverage industry in the United States than any other company. Our efforts with Sunwin enabled us to earn a performance bonus in the quarter, contributing significantly to top and bottom line results in this segment.

In our basic materials segment we witnessed a market improvement in our chemical operations, where revenues were up 35%. This was partially offset by declines in our CDI Beijing subsidiary. Overall our operations were up as compared to the same period in 2009.

As we move forward into the remainder of the year, it is important to emphasize the number of key overall factors we believe will contribute to our success. Our balance sheet has improved dramatically, with cash of $15.1 million, a $2.2 million increase from our September 2009 year end, even after we made a substantial working capital investment of approximately $3.7 million, in order to begin building inventories at our magnesium segment in the first quarter.

Second, we still have negligible long-term debt, and our working capital increased by over 20%, to $37.9 million from the $31 million at the end of our September 30 year-end. Third, as I highlighted earlier, we are increasing magnesium production capacities, which will enable us to remarkably increase our ability to deliver product in the coming quarter, substantially increasing the potential trajectory of our revenue growth and our IMG brand.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CDII $0.00 -20.00%
AAPL $94.37 0.11%
FB $103.33 2.30%
GOOG $683.11 -0.15%
TSLA $154.03 7.20%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs