This is meant to be an update to my previous article entitled “China Direct: Star on the Horizon,” posted on February 4, 2008. China Direct, Inc. (Nasdaq: CDS) has been consolidating amidst the recent turmoil of the world’s financial markets and is now poised to challenge its 52-week high of $12.95 within the next few months.

At the time of my last article, China Direct had announced their intent to acquire majority stakes in two magnesium companies located in Inner Mongolia. As of now one of those has been consummated, Baotou Changxin, formerly referred to by the company as Baotou Sanhe. The second, Baotou Xinjin, is scheduled to be consummated on or before June 30, 2008 according to a recent press release.

China has the fastest growing major economy in the world, with an average growth rate of 10% per year for more than two decades. Its basic materials sector has been particularly strong, given the almost insatiable demands of industry. China Direct, Inc. (AMEX: CDS) provides a unique way to participate in this phenomenal growth.