Operating research offices both domestically and in China, China Stock Digest editor Jim Trippon has become one of the advisory industry's leading authorities on China region investing, specifically involving stocks that trade on U.S. exchanges.

While most recommendations in Trippon’s publication are for well-established large-cap stocks — his portfolio is currently heavily weighted toward telecom and energy issues — Trippon also, on occasion, ventures into the small-cap arena. For his latest buy, he turns to China Direct, Inc. (AMEX: CDS), with a market cap of $121 million.

The operating mission of China Direct, Trippon says, is to give American investors direct access to the booming Chinese economy. China Direct, he says, fills a "special investment niche that has enormous positive potential for both China Stock Digest investors, and for aggressive, capital-hungry Chinese companies."

The company invests in companies that need a capital infusion to achieve the next level in their growth trajectory, Trippon says.

"Unfortunately, major Chinese banks and other large financial institutions have shunned smaller institutions and typically lend only to the country's very large-cap companies," he says, pointing out that the small- to mid-cap investment gap is where China Direct comes in.

"China Direct has established an admirable track record for bringing small and mid-sized Chinese firms to American markets. The principals of China Direct have been instrumental in guiding client companies through the rigorous process of accessing U.S. capital markets," he says.

The company says that its "unique knowledge of the innate practices of Chinese commerce" blended with its experience with U.S. entities offer a "compelling advantage" to capitalize on the growth of the Chinese economy.

"Having personally explored China Direct operations abroad and at its American offices, I can report that the company shows impressive organization and facilities on the ground in China. The company's U.S.-based principals appear to be skillful, articulate and experienced in the complex task of trans-Pacific investment management," Trippon says.

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