To OTC Journal Members: 
 

If You Have The Courage, You Can Create Some Real Wealth Right Now

I don't know your personal financial circumstances. I don't know how much of an appetite you have for risk. I don't know if you have the mental strength to ignore all the negative rhetoric the media is feeding us right now.

Here's what I do know. The most money is made by investors who can filter out all the noise that clouds their judgement and act when everyone is paralyzed by fear. Warren Buffet buys farms during a drought. Sir John Templeton said "I always made the most money when I bought at the point of maximum pessimism".

Now would be a good time to review my video clip entitled "The Psychology of Successful Microcap Investing". It's based on thoughts from Dr. Richard Geist, Harvard phD, who wrote the book "Investor Therapy".  Go to the General video tab on the home page- you'll find it there.

I also know our economic outlook is in better shape this week than it was last week. Last week, we were looking at a virtual crash of our banking system coupled with a complete stock market melt down.

The US Government is doing what it needs to do to stabilize the banking environment and get our economy on track. RTC 2.0 is just what the doctor ordered. The banks will sell their loan portfolios to the this new entity. The Government will own the mortgage pools, and sell them slowly over time. Bids will come back, and the taxpayers might even make money. Banks will shore up their artficially weak balance sheets, and get back into the lending business, which will stimulate growth. The stock market will enter a strong four year period.

Will everything be hunky dory in the US economy overnight? Not a chance. It's going to take a little time. I believe we'll be back into a decent bull market in 2009.

In the interim, I strongly believe you can make a great return in our most current idea- China Energy Recovery- If you have the courage to act now and get engaged. Despite my understanding for the challenges we face, I am moving forward with what I believe could be our best idea of all time.

I doubt many of you reading today's edition were following the OTC Journal when we first featured Netsol International (NASDAQ: NTWK) on January 15, 1999. Click Here for a link to some ancient history if you would like.

The stock was about $2 to $3 per share. In March of 2000 the stock briefly touched on $90 and made an absurdly valued all time high. I don't know anyone who sold the stock at $90- I do know someone who sold a decent position at $70. He bought it at $2.50.

NTWK provided off shore software programming in Pakistan. It was a dream stock. So, despite the tough environment of the past nine months, I do have a history of finding big wins, and I believe I might be onto the best one of all time.

China Energy Recovery is a far better company today than Netsol every was, and investors with the courage to act today stand to make mind boggling returns.

With all the noise going on in the banking sector, the media has lost track of the price of oil, which it used to report everyday. Look at this chart- a rebound in oil was inevitable. Oil closed north of $120 today, feeding the already rocketing revenue stream at CGYV.

Instead of revisiting the long and complex presentation I provided last week, I'm going to boil it down to a few simple facts. CGYV has developed technology that makes factories far more energy efficient and gets rid of their toxic pollutants.

Their time has come. After 10 years in refinement and development, the market is demanding their systems, and sales are exploding. Here's a very brief look at the financial performance:

• 2006: $5.4 million in revenues and losses of $63k
• 2007: $11.8 million in revues and $440,000 in profits:119% gain year over year
• 1st half of 2008: $9.9 million in revs ($16 million for the back half of the year as announced) $26 million for the year- another 120% increase over last year. I expect the company to deliver $3.5 million in profits.

Oil rocketed today when China's oil consumption for August came out. I'm sure there was some kind of short squeeze as well. Here's an eye opening statistics:

In China, it requires 4 times as much energy to generate $1 in GDP versus the United States. This means China is 1/4th as energy efficient as the US.

I have a friend who owns a Winery. He spent $1.5 million on a solar system, and his winery is now completely energy independent. Here's an interesting fact- when factoring in the cost, and computing the return, he has determined he will get a 100% return on his investment in energy savings in about 3 years. This includes computing in an investment tax credit.

Chinese factories that are installing the CGYV system are getting a 100% ROI in 9 months to 1 year in the form of straight energy savings. That's a direct reduction on their monthly power bill. Paid for in 9 months, and all the pollutants are gone as well. That's a phenomenal accomplishment.

In the past 10 days I have picked up 28,000 shares of CGYV for my own account in the open market. I will probably continue accumulating the stock as long as it remains under $3. This is no guarantee the stock will go up, but I like my chances of making real money on this one.

This is an $8 to $10 stock somewhere out in the future. When, I can't say. Here's what you have to consider:

• 120% Growth Rate for the third consecutive year
• Very profitable
• Strong Balance Sheet
• Lots of cash
• Not United States based- it's in a booming economy with huge demand

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