To OTC Journal Members: 
 

China Recycling (OTC BB: CREG): Cracking Resistance

It's been a while since I did one of my video chart presentations, and I don't know exactly why. It's takes a little time to put them together, but it's well worth it if it gives you a clearer picture of what I'm seeing when I look at a chart.

And, the only time it's worth doing is when there's something exciting happening technically. That means a stock is either ready to break down or break out. 

Technical analysis is simply an attempt to try to identify price and volume changes that help predict stock movement based on patterns that repeat themselves. It's worth understanding, as stocks make 80% of their price movements in 20% of the time they trade.

On Friday, the character of CREG changed technically. Fundamentally (the study of the company's financial performance) CREG has proven itself to be worthy of higher levels. Garwood Equities- a Chicago based boutique institutional brokerage firm, estimates the company will earn $.37 in EPS this year on about $90 million in revs. With top line growth of 100%, that's a $7.50 stock plus- 80% higher than Friday's close.

Lest you think things are slowing in China- think again- Behemoth Apple Computer (NASDAQ: AAPL) announced Friday it is planning to open 24 new Apple stores in China over the next 2 years- that's one a month for the next 2 years.

Back to CREG- the company's recurring revenue model could lead to a higher multiple than its peers, so our upside could be considerably higher than $7.50.

Technically, I saw signs of an imminent breakout in the stock on Friday, and this is the best way I can share it with you. This is about a 2 minutesvideo chart. I'll walk you through the technical signs. You should pile in right now if you're looking for a trade. 

All you have to do is click on the following link, and sit back:

http://www.otcjournal.com/elearning/?id=13

The video presentation should just open in your browser. Alternatively, I'll have it simply play when you go to the home page at www.otcjournal.com by tomorrow for those with any sort of technology problem. Of course, you'll have to have your speakers turned on.

I remind you readers that I own about 65,000 shares of this stock, all purchased with my own capital at prices ranging from $1.31 up to about $3.90.

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com