China Direct Industries, Inc. (NASDAQ:CDII
, CDII message board
) started the up move yesterday. The stock gained approximately 15% on the
market to close the day at $1.18 per share. Along with the price move, its traded volume rose up to over 2 million shares. This appears to be a very unusual value for CDII, as its average volume totals only 314 thousand shares.
Apparently, the stock is climbing up on some good news and a promotion from yesterday, which has doubled its traded volume.
A few days ago, China Direct announced that it has received an over $70 million contract from Beijing Tianrun Construction Co., Ltd. for its materials segment and the team was highly satisfied with it. Along with the optimistic announcement, the company reported it was to present at the Rodman & Renshaw Annual Global Investment Conference this year.
The positive releases, along with the recent promotion, immediately reflected on the stock and it started to gain.
China Direct Industries, Inc. manages a portfolio of Chinese entities and provides consulting services to Chinese businesses. At the beginning of this year, the company had a high-start on the market, though after that the stock moved down.
The quarterly report of China Direct shows that its revenue has increased, though the gross profit has decreased and the company has suffered an approximately three times higher net loss. According to its financial report, CDII still has more assets than liabilities and makes optimistic projections for the future.
In the meantime, traders should carefully follow how far the up move will go to.