Editor: I hope you’re right. If the volume holds up, the sellers will eventually be exhausted.

“…Sinochem Fuling, located in Chongqing in southwest China, is a key fertilizer production subsidiary of Sinochem Corporation, a Fortune Global 500 company and one of the largest state-owned enterprises in China…”

It wasn’t the size of the contract, it was with whom they signed it. Nice.

Editor: Check the current blog for more information about what’s important about the news. MECS is a big deal. Check it out. 

Editor: What “the plan here”. Beautifully phrased. In that same time frame, Lehman brothers went bankrupt, and the market got absolutely obliterated. I guess you don’t follow the markets. However, no problem. If you don’t like the plan, don’t invest in the stock. Here’s what you’re not bothering to say. I set the SSL at $3. If you bought a little high, and sold at the SSL, you can now buy cheaper. If you bought, and didn’t sell, get in now. If you didn’t participate, now is good time to look at it. If you don’t like the idea, or you don’t like me, just don’t participate. If it doesn’t work, then you can boast you’re a genius. If it does work, then you can go crawl back in your hole. In the meantime, other than the stupid comment that you don’t like me, I would love a contribution with a company related reason that you don’t like the investment. That would have value for readers, and I would appreciate the contribution.

Editor: Profits eventually lead to price appreciation. It’s bound to happen. Solar stocks are up today on a new bill in Congress. Alternative energy will be the next bubble.

“…How solid are the drivers for cleantech in the current political and economic climate?

The drivers for cleantech are bigger than politics. There is a lot of stake in this election but the cleantech industry is certainly not one of them. Energy efficiency technology is counter cyclical because it is about reducing cost. Nothing is completely recession-proof but energy efficiency is pretty close…”
- Roger Ballentine, CleanTech Aricle 9/17/08

My point is, the stock is not currently reflecting the value of the company with the current sales base plus pipeline. Furthermore, there is room for an upside premium to boot based on the credibility of the technology and the size of the market. I have yet to take a full position and I’ll leave my orders in staggered above the 2.50 low (post reg. stmnt effective). Any thoughts on entry points (tough, I know) would be greatly appreciated. I do not at all mind this decline based on the health of the company. THX!

Editor: I think it’s tough to make entry level predictions in this market. I think you have to look at value. It’s hard for investors to set aside their fears and invest capital, but this is when you are likely to make the most money. If you look at value, CGYV is worth $7 today. However, it’s a tough call to say when it will get there. Oil back over $100 is helpful, but the key issue is the numbers over the next two quarters, which will be huge. I would prefer it be reflected in the stock price sooner rather than later, but these are unpredictable times.

Editor: Marketing the stock, or the products and services. If you’re wondering about the stock, the company is scheduled at a number of conferences, and is currently on a “non deal” road show- this means they are visiting fund managers world wide without the intention of raising capital. Just creating awareness. On the products and services side, they do not have one salesman at the company, and all the business they can handle. A large percentage of their business comes from their systems being built into factories built by Monsanto.

Thanks for the tips!

Editor: Will do so. Thanks for the idea. The historical performance of CGYV is quite impressive.

Editor: The company presented at the Merriman conference in San Francisco yesterday. They are on what’s called a “non deal” road show through the end of the month which starts in Boston, goes to NY, and then goes to Europe. In light of today’s market conditions, I believe the European trip is likely to create the best result.

Ok, that 8 Mil. infusion goes to the new facility that will allow the 40 Mil. backlog to be produced. What is the best guess timeframe on that, Sir (manufacture and install the backlog)?

Thank you, again, for this idea.

Lewis

Editor: According to their press release, they will complete $16 million before year’s end. They are capable of delivering about $12.5 million per quarter which leaves them $24 million in additional business- therefore, the backlog carries them to about July or August of next year assuming they don’t expand their manufacturing capability and run at full capability.

ERII is trading well, if that is any comparison to what we should expect.

Editor: It’s been a long time since I found one this compelling. Watch over the next month- I wouldn’t be surprised if we’re looking a lot better by then.