Part of me is excited to be looking at the latest news from this small cap company …they’ve more than delivered on the promise we hoped they would. On the other hand, China Energy Recovery (CGYV) has been hijacked like every other stock by the angry bear - the good news may be falling on deaf ears. Be that as it may, if Monday’s action really is a market reversal, then the news could mean a whole lot more tomorrow than it did today. In short, China Energy is already ahead of last year’s total revenues by $3 million, yet they’ve only reported for the first three quarters of 2008.

That’s called growth - the kind of growth we expected, and the kind of growth that was the basis for our suggestion. That growth hasn’t mattered much yet, but give it time.

For the first nine months of 2008, China Energy as taken in revenues totaling $19 million. For all of last year, they took in $16 million, putting the company three months and $3 million ahead of last year’s pace. We also estimated a full-year (2008) revenue total of $26 million, so we’re expecting another $7 million or so to flow in during Q4.

Take it for what it’s worth, but know that the company is doing their part. I can’t talk a small cap stock higher (though I wish I could). This is one of those tests of faith …a great bulletin board company, but so far a fairly unenthusiastic bulletin board stock. Like I said, I fully attribute that to the environment - not the company. If Monday was a true bottom for the market though - short or long term - then the story may well start to get traction with the market.

I suggested on Thursday to put CGYV on a watchlist. This is why - I feel we’re getting close to something big here in the way of the move, so stand ready to take some action if you’re not already in a trade.

It looks like whoever was selling has finally unloaded everything he/she needed to. The selling volume has dissipated, and we’re actually starting to see some buyers trickle in. A little follow-through on Monday’s action could get the ball rolling. Stand by.

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