SOURCE: China Direct Industries, Inc.

May 18, 2011 11:59 ET

China Vesting Issues Update on China Direct Industries

LOS ANGELES, CA--(Marketwire - May 18, 2011) - China Vesting, a leading investment newsletter dedicated to Chinese public companies listed in the United States, today announced that is has issued an update on Florida based China Direct Industries (NASDAQ: CDII), a leader in the production and distribution of magnesium, and distributor of basic materials in the People's Republic of China.

China Direct operates two main segments, Magnesium and Basic Materials. The Magnesium segment produces and distributes various magnesium products, such as magnesium ingots, magnesium powders, magnesium alloys, various grades of magnesium slabs, and magnesium scraps. The Basic Materials segment involves the sale and distribution of industrial grade synthetic chemicals, steel and non-ferrous metals. Further, China Direct Industries, Inc. offers consulting services to United States and Chinese companies.

CDII Trading subsidiary adds further potential upside and fast growing US-based revenue stream. CDII Trading has an ongoing agreement with a Mexican supplier to provide Iron Ore which is ultimately destined for China. China Direct announced that they completed a shipment of 20,000 tons of iron ore bound for China, the second shipment in less than 60 days. Management also stated that they anticipate deliveries of iron ore from their Bolivian supplier to begin in the Q3 of fiscal 2011. Upon the completion of the initial shipment, management expects to develop a recurring delivery schedule from both countries into the China market and is making preparations to also ship iron ore from Chile sometime before the end of fiscal 2011. This could prove to be a compelling business in and of itself in addition to their core operations.

China Direct Industries has given public guidance estimates for fiscal 2011 with revenue of $180 million and net income of $12 million. China Vesting previously added CDII to its Dragon Undervalued Index based on the company being one of the only Chinese Companies based in America with senior management that are American Citizens, who live and reside in the U.S. and thus must obey American laws and standards.

Members of Dragon Undervalued Index represent undervalued Chinese companies trading on U.S. exchanges. There are many parameters China Vesting uses to decide what companies are eligible to be classified as a Dragon. The most important being: A member company must possess a market value that is less than comparables. The most common metric China Vesting will use is price to earnings (P/E) and enterprise value to earnings (EV/E). The market value must be significantly less to the point where the market value of the public company is less than or equal to what the company is worth as a private company. To read the full report regarding China Direct Industries inclusion into the China Dragon Undervalued Index, please navigate to:

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