While you may be saying to yourself after reading the title that CHDT.OB (China Direct Trading), is an over-the-counter equity, the truth is that a lot of reward can come to individuals who take such a risk.

A relatively new company, CHDT utilizes its Florida headquarters to help corporations by selling gifts and promotions along with generator supplies as a subsidiary bracket. Founded in 2002, the company has received modest earnings throughout its four years but recently, as released on their first quarter results, CHDT obtained a $43,000 net profit: the first time in over a year. Revenue has also increased this quarter promoting stability over the past few years.

As the fundamentals are solid, the real component of CHDT comes from its volatility. Currently selling at 0.08 (August 2006), this equity can be responsible for increasing portfolios over five percent on a daily basis. As volume is already quite high relative to a capitalization of 48 million, already investors have found an undercover stock which has such a high potential of rewards.

As CHDT has a resistance level of near 0.15 and a support level of around 0.08, there is a strong potential that an investor can continuously make over 100% in terms of return of investment in only weeks in some cases. While there is also the potential to lose that much as well, with such levels of support and resistance, if the investor is smart he or she will heed such information and use time to his or her advantage. For example if one such investor were to buy CHDT at near 0.087 on Monday August 1, 2006, by Wednesday the investor would have made nearly 30% profit if he or she sold during the day's high.

Thus, while there is potential for immense losses for such a risky stock, the rewards are plentiful especially for such a cheap price. Both growth and profits seem to be rising at a solid rate, and the price reflects such a remark giving investors a large chance to win big. With such noticeable support and resistance levels, any investor who uses timing to his or her advantage will find a nice portfolio growth in the future. While such a stock may not be favorable for emotional investors, investors who utilize reason without having to wait such a long time will find this stock as a great investment in the short run.