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Daily Blog

China Energy Recovery: In Pretty Good Shape

By OTCJournal Editor
March 2, 2009 @ 3:46 pm

Amazing what growth and earnings will do for a stock. At $1.50, CGYV’s price doesn’t seem like any big deal relative to the company’s performance.

However, consider the relative performance of the stock. Nearly every major average you can site- The DOW, S&P 500, NASDAQ, the Russell 2000- they are all falling through to new 12 year lows, and far below the lows set last November. Technically, at this point it’s impossible to call some sort of bottom.

However, CGYV, on a relative basis, is holding up pretty well. After all, the last time the Indexes traded to these levels, CGYV traded to a low price of $.90.

Today, CGYV is 66% higher than it was in November with all the major indexes falling to new lows. So, on a relative basis, that’s not so bad. Helping fuel the recognition for this issue is information found in the recent Obama quasi State of the Union address as follows:

“We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy-efficient.”

China hasn’t exactly been the poster child for clean energy over the past two decades - its rapid economic climb led to serious pollution problems. But in the past couple of years the Chinese have been pressing on with an energy-efficiency campaign that is projected to result in hundreds of billions of dollars’ worth of construction upgrades by 2020.

Investors are beginning to realize CGYV is smack dab in the middle of the “hundreds of billions” in construction by 2020. Cleaning up the atmosphere in China is just beginning, and it will last a long time.

Look for another double in revs this year, with a push for $100 million in revs in 2010. When it translates into a higher stock I can’t say. However, eventually money will flow back in this direction, and when it does……

Comments and questions are welcome.

2 Comments

  1. I am new to investing and just heard of cgyv.Are they really as good as advertised?

    Editor: Here’s what I suggest you do. Watch the video on the home page at www.otcjournal.com, and watch tomorrow’s news on the year end numbers. Then, make up your own mind. Personally, I love this one. When money flows back to Chinese ideas, watch out.

    Comment by mark — 3/25/2009 @ 2:34 pm

  2. I guess that I am a believer. Seems to be a reasonable investment. So I am in.

    Editor: As am I. Still holding all shares, and patiently awaiting the market’s return to a belief in China’s future, and pricing this one at some sort of reasonable level.

    Comment by Rick — 3/17/2009 @ 1:43 pm

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