CGYV behaved pretty well today on the volume side. I would like to have seen a little appreciation on the price, but it’s a sign of the times.
If you have capital, and you have bought into this company, you are not a seller of this stock. If you are forced to sell because of your circumstances, or are focused solely on the market, you could be a seller.
If you are a seller, I suspect your timing might be bad, as the majority of the damage has been done out there in the stock market. Real revenues, real profits, and really valuable energy saving technology in a world where that technology is very valuable will eventually take this stock where it deserves to go.
There’s a couple of interesting items worth pointing out. For starters- this morning’s news release. The company announced a new contract for engineering services- admittedly very small by their standards, yet important for another reason. Note who is handling the services- MECS.
MECS is relatively meaningless to the average guy, but the name Monsanto (NYSE: MON) is not. MECS is formerly Monsanto Enviro-Chem Systems, and one of the largest designer and builders of manufacturing facilities in the world. It was formed in 1969, and was purchased in a management led buy out in 2005 from parent Monsanto. If you look at their office locations, they are a world wide firm. Click here to visit their web site.
CGYV is deeply entrenched with MECS, and obtains a high percentage of its business from the aformentioned world wide firm.
Here’s a second item for you to chew on. There was an interview published at CleanTech.com with Roger Ballantine, the most recent board member added to the CGYV management team, and one of the most respected names in the alternative energy movement.
Mr. Ballentine is a frequent lecturer at Harvard, and served under President Clinton as Chairman of the White House Climate Change Task Force and as Deputy Assistant to the President for Environmental Initiatives. The Clinton Climate Change Task force was the birthplace of Al Gore’s environmental movement, and led to the making of the movie An Inconvenient Truth. In the Alternative Energy field, this guy is the real deal, and highly respected world wide.
If you would like to read the interview with Roger Ballantine, simply click here.
Today’s action in the stock was pretty interesting. Here’s a chart:
There was a nice volume surge with no associated price appreciation. This means sellers were matching buyers 1 for 1.
This stock has now traded 1,018,198 shares since the company’s registration statement of 7 million shares went effective. The financing was done at $2.20- so $2.75 isn’t a really exciting profit- unless you think the world is coming to an end of course.
I suspect the number of shares for sale is probably in the range of 10% to 20% of those in the reg statement. Most of the players have very deep pockets and a long term perspective, but there are always going to be a few weak sisters.
If you average it out, and assume it’s 15% (just a guess), about 1 million shares of buying would clean this stock up and position it to move higher.
Assuming the volume is all double printed, which is a worst case scenario, this would mean the market has chewed up about 1/2 the existing supply.
So, here’s the point- keep an eye on the volume. If it holds up over 100k shares everyday this week, a break out is inevitable. If the volume slows down, the stock is likely to go into a slight pullback- probably pretty shallow.
I’m told there’s starting to be some chatter on this company around the internet. My hope is that investors look at the facts around the company, not the past. The past is over. It’s been a bear market, and the US is in a recession. There is no recession in China. Perhaps a slow down worst case.
I picked up another 5,000 shares for my own account today- I believe I’m going to make a fortune on the stock.
If you have any questions on the company’s numbers or technology, post them here. Comments and questions of an intelligent nature are always welcome. If you don’t like the company, go ahead and tell us why, and I’ll publish your comment with a response.