China Direct raises guidance for fiscal year 2007
Shares of China Direct, Inc. (Amex: CDS) jumped in pre-market trading after the U.S. company substantially raised its guidance for the full year of 2007 on account of operating results for the third quarter and internal forecasts for the remainder of the year.
China Direct, which owns controlling stakes in Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, said it now expects revenues for the full year of 2007 to exceed $175 million and anticipates net income to surpass $9.5 million. The company had previously guided for revenues of $150 million and net income of $8.25 million.
The small cap noted that the third quarter and remainder of 2007 was positively impacted by the overall price for pure magnesium in the global marketplace as well as strong performance from its consulting division and chemical operations.
Shares of China Direct (CDS) jumped 11.27%, or $0.94, to $9.28 in pre-market trading. Shares of China Direct have been trading in the range of $2.49 to $12.95 for the past 52 weeks.
