To OTC Journal Members: 
 

Chu On This

President Elect Obama announced his Energy Team, led by Dr. Stephen Chu as Secretary of Energy, Nobel Prize winner in Physics. The home run for China Energy shareholders would have been California's Steve Westly. Westly is an eBay founder, well known investor in Green theme companies, and personally a China Energy Recovery shareholder- he owns 472,000 shares with a cost basis of $2.12, and has been a public proponent of the company. This might have brought some major recognition to the company.

However, Stephen Chu is a great second choice for CGYV shareholders in light of his stance on the future of energy conservation. Here's a direct quote:

"If I were emperor of the world, I would put the pedal to the floor on energy efficiency and conservation for the next decade"

"Get rid of the wasteful habits and inefficiency and that by far and away will show the biggest gains in the short term"

In 2007 Dr. Chu co-chaired the research for a paper entitled "Lighting the Way Toward a Sustainable Energy Future". The paper was commissioned by the governments of China and Brazil. 

As regards Industrial Efficiency, Dr. Chu observed the following:

"In addition to the potential that exists based on currently available improvements, new and emerging technologies for the industrial sector are constantly being developed, demonstrated, and adopted. Examples of emerging technologies that could yield further efficiency improvements include direct reduced iron and near net shape casting of steel, separation membranes, black liquor gasification, and advanced cogeneration."

Funny coincidence. CGYV is in the business of providing Advanced Cogeneration, and recently signed the largest contract in its history- and guess what for- Black Liquor Gasification. This is a by product of paper mills. In this $11.2 million contract, CGYV will be building the one of largest boilers in the history of industry. The boiler will liquify the Black Liquor, and the steam will be used to drive an electricity producing turbine.

The electicity produced will be enough to power about 17,000 homes.

Dr. Chu is American born, but of Chinese descent. Perhaps his heritage will work in CGYV's favor as well. A pack with China and the US on global warming is in the works right now, and the news Administation will be right in the middle of it.

On another note, there was an interview with CGYV board member Roger Ballantine over the weekend on a British based commodities radio show. Ballantine was formerly the head of the Clinton/Gore climate change task force. This is where the original research for "An Inconvenient Truth" began.

In order to listen to the interview, go to the following link:

http://commoditywatch.podbean.com/2008/12/13/roger-ballentine-of-china- energy-recovery/

There isn't much going on with the chart. A little volume takes the stock up, and a little volume takes it down. Here's how I see this company. Sooner or later money is going to come looking for Green Theme stocks, and it's going to look for growing companies in China. It's going to find CGYV- it's a natural and the numbers are too good.

It's probably not going to happen this year as we are closing in on the end, and there's some obvious tax loss selling going on. However, if the company has another year in 2009 like it's having in 2008, growth money will find it.

I believe the stock is a super strong buy under $1.50, and a strong buy up to $2. I'm looking for $5 to $6 in 2009.

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