We had a spike on June 8, 2009 at $2.40 and then another spike on Jan.11, 2010 at $2.67. These occurred during the recession. Any thoughts on if we get beyond that old high of $2.67?
China appears to be moving along nicely. Are we indeed in the beginnings of a new cycle and if so do we break on out above $3.00? I know this is somewhat of a vague question as we know that trying to project a stocks future price can indeed be a futile process. My general thoughts are that we are coming out of a bad period and into a cycle of profitability. I think that those of us that have been accumulation shares in the .90 to 1.25 range are feeling pretty good at this point. I know that there are many that are still holding that bought at much higher levels years ago and hoping for a rebound.
CDII's future is 100% linked to its success in magnesium...Basic material business carries a low of margin of 3-5% so even if they book $200 million in basic material business it is not going to contribute more than $10 at most in operating income..However, if magnesium continues to expand toward $4000 and margins expand the company could huge margins and net income especially if they make more acquisitions and expand operations to 100,000 tons per year.....So monitor magnesium prices because once it hits $3400-$3500 fob shanghai CDII stock price will start moving...Until then we are going to be stuck in a trading range of $1.18 to $1.35.
Also if the overall stock market continues to go up eventually institutions will start fishing for stocks which have not participated in the rally and CDII will be one of those. But in my opinion the downside is limited to $0.10-0.12 cents but upside is easily 100-200%....