CHND China Media Inc (CE)

Dutton Associates initiates coverage of China Direct (OTCBB:CHND) with a Strong Speculative Buy rating and a $5.52 price target. The 44-page report by Dutton senior analyst Stanley Ng is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. China Direct is a diversified management and consulting company with the mission to create a platform to support, develop and nurture business opportunities arising from the opening of markets in China. Management believes, and we concur, that the combined resources of its two major operating subsidiaries, China Direct Consulting and CDI China, will create a resource platform to offer a comprehensive suite of services critical to the success of Chinese entities that have good growth potential but lack sufficient working capital and management skill to expand their businesses. By taking advantage of an inefficient capital market in China and leveraging its connections and management skill, China Direct has successfully identified and acquired majority stakes in several quality Chinese entities with good growth potential. These include Chang Magnesium, a market leader in magnesium production; Lang Chemical, a third-party agent and distributor of synthetic chemicals in the Eastern China region; and CDI Wanda, a company using its proprietary system and technology to transform waste tires into distillate fuels. The recently announced 1Q07 results, with revenue of $31 million and net income of $1.9 million, underscored the success of China Direct�s business model, and we believe such bullish trends will extend in the remaining quarters of FY2007 and well into FY2008. About Dutton Associates Dutton Associates is one of the largest investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 145 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 5/15/2007. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.