Ranked #1 upside potential among top 100 Chinese companies:
http://www.cnanalyst.com/upside/

Why give them a look?
Sales $201.26 Mil per year
Sales Growth*   +43.20%
Debt/Equity Ratio       0.04
Cash $11.59 million
Asset $79 million not including $11.59 million in the bank and future
earning
Market Cap $25 million

Gross Operating Profit
2005 $.72 Million
2006 $-.46 Million
2007 $14.38 Million
2008 $24.68 Million
Source: http://www.marketwatch.com/investing/stock/nep/financials

What they do?
Basic material and Magnesium (think of them as FCX for magnesium)
China Direct Inc is a Deerfield Beach, Fla.-based company that
operates magnesium plants in China. The revenue they generates come
from China.  However, soon they can easily quad-triple that by
becoming both importer and exporter.  Generating revenue not just from
China but also US, eventually generating from all over the world.

How is their finance?
Total Current Liabilities ( Accounts Payable , Accrued Expenses, Notes
Payable/Short Term Debt, Current Port. of LT Debt/Capital Leases)
As of 3/31/09 $13.53  million
As of 12/31/2008 $22.23 million
As of 9/30/2008 $33.41 million

Dummies version explanation:  Think of it as your credit card bill and
you are trimming 30% off your credit balance every 3 month.  Most
amazingly is the total current  liabilities and the pace its
decreasing rate (less liabilities, less debt the better, making
improvement quarter over quarter is just icing on the cake).
China Direct, Inc., doing business as China Direct Industries, Inc.,
primarily engages in the production and distribution of magnesium in
the People’s Republic of China. It also distributes basic materials
and offers consulting services. The company operates in three
segments: Magnesium, Basic Materials, and Consulting Services. The
Magnesium segment produces and distributes various magnesium products,
such as magnesium ingots, magnesium powders, magnesium alloys, various
grades of ordinary mag ...

What are the Potential Catalyst?
-Although they generate their revenues from sales in China, China
Direct is also taking steps to become a U.S. importer of the metal.
The company's first test shipment cleared customs last month, said
James Wang, chairman and chief executive officer.

-China Direct is seeking an exemption from U.S. import duties, a
process that could take between six months and a year.

-Rebound in magnesium price

-Still ranked number 1 here, keep in mind Feed, APWR, etc were on top
10 before they made 500% move.  http://www.cnanalyst.com/upside/

-Repurchase of $1.7 million worth of their own common stock recently

-Recent new 30 million dollar contract