Jim Trippon, China Stock Digest
Jim Trippon CPA, is the editor-in-chief of China Stock Digest, America’s number one performing retail China investment newsletter, as rated by Dow Jones’ Hulbert Financial Digest. He is America’s foremost authority on China investing, using proven techniques and principles. Mr. Trippon serves as an investment advisor to corporate pension plans, trusts, and high-net-worth families. A former Price Waterhouse CPA who has worked extensively inside China, he has successfully invested in China’s financial markets for years. Mr. Trippon’s team of financial analysts is based in Hong Kong, Shanghai, Taipei, and Beijing. He leads an annual China Investors fieldtrip, a two-week trade mission to China that provides behind the scenes access to China’s business, academic, and political elite while exploring China’s ever changing economy. Mr. Trippon is an on-air contributor to CNBC, CNN, Fox News, CBS Marketwatch, and numerous other television networks.
China Direct (AMEX: CDS)
China Direct is an aggressively expanding US based firm which has created a strategy to assist in the development of the Chinese economy and to profit handsomely in the process. The company has grown exponentially over the course of the past year from being a start up with meager profits to a thriving concern with a sharp revenue growth curve. Share prices are following suit.
We are recommending China Direct because it gives US investors an opportunity to take a position in a small number of carefully selected companies on the cusp of major expansion. As this pattern continues, share prices should follow. China Direct has two divisions. Its management division acquires controlling stakes in Chinese companies and then provides investment capital and active management to enable select firms to thrive as subsidiaries of China Direct in their respective industries. The company’s consulting division assists other companies in China and the US in establishing and maintaining a presence in the US capital markets. The company says that, as a direct link to China, it serves as a vehicle allowing investors to directly participate in the rapid growth of the Chinese economy in a diversified and balanced manner. The company says its sharp rise in revenues was primarily attributable to three recently acquired Chinese companies, Chang Magnesium, Lang Chemical and CDI Wanda, as well as a strong performance from China Direct’s consulting division. China Direct says its subsidiary, Jinwei Magnesium Co., Ltd., has begun the production of magnesium at its new manufacturing facilities.
China Direct has established an admirable track record for bringing small and mid-sized Chinese firms to American markets. The principals of CDI have been instrumental in guiding client companies through the rigorous process of accessing US capital markets. CDI has now applied its unique ability to provide comprehensive financial services to facilitate the success of its own portfolio companies. The addition of new manufacturing operations is likely to enable China Direct to generate healthy revenue and net income growth in the forthcoming few years. Most recently the company acquired 100% of Xiangxi Autonomous Prefecture Jixiang Mining Industry Co., Ltd, a business which mines, processes and distributes concentrated zinc and lead. The newly acquired company will be renamed CDI Metal as a wholly foreign owned entity. CDI Metal owns the sole mining rights to a parcel of land located in the Yongshun Kaxi Lake Mining area. The preliminary reporting from China Direct’s engineers estimates that the zinc and lead reserves contained in the land covered by the mining rights are worth up to $54 million at current prices.