December 23, 2010 (Chinavestor) China Direct Industries, Inc. (NASDAQ:CDII) reported fourth quarter financial results for year ended September 30, 2010 after the close yesterday. Shares of the company fell 4% after the first hours of trading amid low volume as investors digest the latest developments of the company.
The bad news are twofold. For one, the company continues burning cash. Out of the past eight quarters, China Direct Industries, Inc. (NASDAQ:CDII) was profitable only once! The company still has just over $10 million cash, two million less than same time last year. This in turn suggests an immediate cash crunch is highly unlikely. But again, investors like stocks with constant revenue and earnings growth, something China Direct Industries, Inc. (NASDAQ:CDII) has been unable to produce.
Another bad news is that all the bleeding comes despite record high commodity prices.The company is still in the red and there is no sign that the stock price is going to go higher anytime soon.
It seems that the 4% drop and low volume today is a sound reflection of what investors should think of this company.
If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
