Thursday, April 8, 2010

Clean Coal Technologies, Inc. (CCTC) gets a story in Business Week Magazine

On March 15, 2010 I did a follow-up on a Blog entry of February 4, 2010, which you can see at http://WayneCrumpley.Blogspot.com. I sent these two blog entries to my Contacts on LinkedIn, and to some other friends who are not yet on LinkedIn, as a favor. I got quite a number of people who thanked me, and some asking more questions. I also got a huge “spike” in the visitors to my website: http://www.PacificStatesCapitalCorp.com. I want to thank everyone for the feedback. I’m not offering to sell you anything, and I’m not asking for anything from you in return, or asking you to buy anything from me. For those of you who are not presently investors, Clean Coal Technologies, Inc. (CCTC) is a stock you should take a look at, research, and consider for yourself, depending upon your individual circumstances. In this blog entry I am giving you lots of locations for you to do independent research to see if this company is something which you might be interested. In my previous blog entries I discussed the merits of the Company, its technology, and business relationships.

When I made my original post February 4, 2010 the stock was selling at $.07 per share. Yesterday, April 7, 2010, the stock closed at $.157 per share. If you had purchased the stock when I brought it to your attention, you would have more than doubled your investment in two (2) months ! Read my blog dated March 15, 2010 as to where I think this stock will go this year.

Since my original blog two months ago, the Company has signed a consulting agreement with Randall Business Development, Inc. to work with domestic companies in the United States to either improve their clean air compliance on their existing coal fired electrical generation plants, or to obtain a licensing agreement to use the Company’s technology to clean up and improve the quality of the coal, before it is burned, in the electrical generating process. The personnel of Randall Business Development, Inc. have the background, experience, education, and contacts to represent potential customers with all the governmental agencies which regulates the electrical power industry. The Company made a news release March 8, 2010 making the announcement with regards to Randall Business Development, Inc. The Company, in that announcement, is expecting a further announcement “for the signing of at least one new US contract prior to the end of 2010.” You may see this news release, and other information, on the Company’s website at: http://www.CleanCoalTechnologiesInc.com. On March 29, 2010, the Company filed its Annual Report (10-K) with the Securities and Exchange Commission (SEC). This 10-K marks the first filing of a 10-K for the Company since it has become a public company. This report covers the history and progress of the Company since its formation in the fall of 2007. You may look at the 10-K at the SEC website at: http://www.sec.gov/Archives/edgar/data/1445109/000117935010000025/f0910kfinalfinal.htm. Last Monday, April 5, 2010, the Company issued a news release announcing that it will be featured in Bloomberg’s Business Week Magazine, in the issue to be released for sale on the newsstands dated April 19, 2010. I would expect that Doug Hague, the president and CEO of the Company will also do an interview on Bloomberg News. This will give the Company a lot of exposure this coming week (and the weeks and months ahead). (Two things about the press release . . . it is written in the “past tense” wherein it should have be written in the “future tense,” and it talks about the Company’s contracts in the “millions” when it should be either in the “hundreds of millions” or the “billions.” This news release can be found at: http://finance.yahoo.com/news/clean-coal-technologies-inc-iw-779373664.html?x=0&.v=1. The Bloomberg Business Week Magazine article itself is in the April 19, 2010 (Western) edition on page 65, (may be different in various regions of the country), and can be retrieved at: http://finance.yahoo.com/news/Clean-Coal-Technologies-Inc-iw-720312007.html?x=0&.v=1.

A huge “potential” news release that has not been made, that I have been expecting and look forward to on a daily basis, is that the Company has collected the invoice for a million dollars from INK Global, the Indian company which purchased the license agreement for the country of India last December. This news announcement, when and if it is made, will be HUGE! Watch for this development! I cannot over-emphasize the importance of this (future) announcement. I have no idea as to when it will happen (or if it will ever happen!). In my opinion, this (future) news announcement will be the event that makes the Company!!

As always, I must say that I am not, nor any of my companies, are not stock brokers, broker dealers, an accountant, lawyer, or investment advisor. In deciding if you want to speculate in the stock of Clean Coal Technologies, Inc., or any other securities, you need to consult with a professional investment advisor who knows you, your personal financial circumstances, your financial and psychological tolerance for risk and to purchase and hold investment securities, and if the investment is right for you. I am basing my opinions upon over 50 years of speculating in the stock market, and being in business for almost 50 years. My experience and background can be reviewed on my website at: http://www.PacificStatesCapitalCorp.com. Again, as always, these are my personal opinions, and . . . I could be wrong!

Monday, March 15, 2010

Update On Blog of February 4, 2010

"When it's raining Gold, Reach For a Bucket, Not a Thimble."
-Warren Buffett, February 27, 2010


On Thursday, February 4, 2010, I sent out a Blog entitled "Stock Price/Business Opportunity Dis-Connect at Clean Coal Technologies, Inc. (CCTC.PK)." That day the CCTC stock closed at $.07 per share. Over the next six trading sessions the stock went down to $.04 per share. Today, the stock closed at $.147, double the price when I wrote the Blog. Read the Blog at http://WayneCrumpley.Blogspot.com.

Here are some further insights on this opportunity for you who are interested. On January 6, 2010 the CCTC shares closed at $1.20. The average daily volume was approximately 10,000 shares per day. There were approximately 1,600,000 shares of outstanding "free-trading" registered shares available owned by approximately 3,000 shareholders. On January 14, 2010, approximately 435,000,000 shares of existing "restricted" stock became eligible for "free-trading" status that ONE day! (The officers, directors, control persons, and affiliates have slightly different rules. This accounts for approximately 100,000,000 shares. There are approximately another 100,000,000 shares of people who are "close" to the company who understand what's happening, and will not be substantial sellers of the CCTC stock at current prices). From the January 6, 2010 closing price of $1.20, just 24 trading days later, on February 10, 2010, the CCTC stock hit its all-time low of $ .0370 per share. Keep in mind none of this stock action has anything to do with the underlying performance of the Company; this is strictly a "stock phenomenon." From January 14, 2010 to January 29, 2010 (11 trading days), there were 10,632,487 shares traded. In the month of February 2010 there were 272,151,291 shares traded (19 trading days), and so far in March, including today, there have been 55,287,601 shares traded (11 trading days). Therefore, from January 14, 2010 through March 15, 2010 (41 trading days), there have been 338,071,379 shares traded. Assuming that there were 150,000,000 shares cleared and processed by the Company, the stock transfer agent, and the selling broker/dealers, that means every share available has been sold twice to someone. Or, to say this in a different way, let us assume that there are 435,000,000 total shares outstanding; 200,000,000 are being held by officers, directors, control people, affiliates, and knowledgeable close investors; and from the balance of total stock held by everyone else; 150,000,000 out of 235,000,000 shares have gone through the process of delivering their shares to a broker/dealer for sale. I personally think this is a stretch!

I think the market-makers and some speculators recognized early on the opportunity of having 435,000,000 shares becoming eligible for "free-trading" status in one day on a stock then trading 10,000 average shares per day. (The "shorters" would analyse this by thinking, with an average volume of 10,000 shares per day, [Demand], and an immediate availability of 435,000,000 shares [Supply], this stock is going down!). Market makers have the legal right to sell shares short that they do not own. This is called "naked" short sales. It would be my educated guess that the company has a 40,000,000 to maybe as much as 60,000,000 over-hanging "short" position.

The next step is . . . how do the "shorters" cover themselves, and what is the direction of the stock. The "shorters" will "cover" when they are certain the stock is heading "UP." What happens if there is no stock for them to purchase? All of a sudden the "supply/demand" position is turned on its head. Instead of no Buyers (demand) looking at a 435,000,000 share supply, we now have maybe 40,000,000 to 60,000,000 short demand chasing no supply. As fast as the stock went from $1.20 per share to $ .04 per share, it is my opinion that the stock could go from $.14 per share (present), back to above a dollar. There could develop a "feeding frenzy" to buy the stock to stop the losses of the stock moving up.

Since early January until now, and continuing, the "company development" and the "stock sales" have been dis-connected. In my February 4, 2010 Blog, I explained some of the projects the company is working on, i .e., the Chinese Inner-Mongolian coal and gasification plant, the India (Global Ink) licensing agreement, and other foreign and domestic transactions that are and have been for some time in the works. All of these company developments are not being considered in the stock transactions of the last two months.

On March 31, 2010 (two weeks from now) the 2009 Annual Report (10-K) is due to be filed with the Securities and Exchange Commission (SEC). This report is the third 10-K for this company, and should be substantially better than the December 31, 2007, or the December 31, 2008 Annual reports. On May 15, 2010 (two months), the first quarter (10-Q) report for fiscal year ending December 31, 2010 will be due. The next quarterly report will be the second quarter, ending June 30, 2010, which will be due the SEC by August 15, 2010. All of these things take awhile for the "market" to hear about, consider, and digest. There has been a lot of talk that as the Company moves closer to positive cash flow, and over-all development, the Company would hire a full-time Chief Financial Officer (CFO), and a full-time Public Relations (PR) person. Hopefully, both of those hires will happen soon!

My prediction is . . . for Clean Coal Technologies, Inc. (CCTC) stock price is that it could get to over $1.00 per share by, or before, September 15, 2010.

How is it possible for CCTC to go from $.14 to $1.00 within six months? What happens from March 15, 2010 to September 15, 2010 are the following:

1) Annual Report (10-K), due March 31, 2010;
2) First Quarterly report (10-Q), due May 15, 2010;
3) Second Quarterly report (10-Q) due August 15, 2010;
4) Company hiring a full-time Chief Financial Officer (CFO), and a full-time Public Relations person;
5) Developmental reports, pictures, and video of the progress of the Chinese Inner Mongolian project;
6) Progress reports from India of the progress of Global Ink;
7) Other signings of technology licensing agreements with other companies in China or other Asian countries presently being considered;
8)Possible signing of one or more licensing agreements in the United States for the use of the Company's technology; and
9) Other things which I know nothing about.

It is my personal opinion that the next six months will be interesting and exciting! At $.14 per share, it is my further opinion that Clean Coal Technologies, Inc. (CCTC.PK) is under-priced and its short-term and long-term prospects may very well make these shares the opportunity of a lifetime! As always, I must say that I am not, nor any of my companies, are not stock brokers, broker dealers, an accountant, lawyer, or investment advisor. In deciding if you want to speculate in the stock of Clean Coal Technologies, Inc., or any other securities, you need to consult with a professional investment advisor who knows you, your personal financial circumstances, your tolerance for risk, and if the investment is right for you. I am basing my opinions upon over 50 years of speculating in the stock market, and being in business for almost 50 years. My experience and background can be reviewed on my website at: http://www.PacificStatesCapitalCorp.com. Again, as always, these are my personal opinions, and . . . I could be wrong!


Thursday, February 4, 2010

Stock Price/Business Opportunity Dis-Connect at Clean Coal Technologies, Inc. (CCTC.PK)

There is a rare opportunity happening now in the common stock of Clean Coal Technologies, Inc. (CCTC.PK). The price of the stock has no relationship with the business opportunities being created by the company. There is a total dis-connect and therein is the opportunity!

Clean Coal Technologies, Inc. (CCTC.PK) stock was selling in November 2008 for over $7.00 per share. The stock closed on January 11, 2010 at $1.10 per share. The stock closed today at $.07 per share on 470,569 shares of volume. The stock has traded approximately 12,210,592 shares in the last 13 trading sessions. So, what has happened, and is this company going broke, or what? Or, . . . is this an opportunity of a lifetime?

Clean Coal Technologies, Inc. (CCTC.PK) owns a patented technology that it believes will provide clean energy at low costs through the use of the world’s most abundant fossil fuel, coal. The company’s technology is designed to utilize controlled heat to extract and capture pollutants and moisture from low-rank coal, transforming it into a clean-burning, more energy-efficient fuel, prior to combustion. The proprietary coal cleaning process is designed to ensure that the carbon in coal maintains its structural integrity during the heating process while the volatile matter within the coal turns into a gaseous state and is removed from the coal. The process is useful in a variety of applications, including coal-fired power stations, chemical by-product extraction, and as a source fuel for coal to liquid technologies. Clean Coal Technologies, Inc.’s patent information is available at http://assignments.uspto.gov/assignments/q?db=pat&pat=6447559 . The company’s scientific partner in the commercialization of the company’s technology is Science Applications International Corporation (SAIC), and their wholly owned subsidiary, Benham Companies, LLC. SAIC is a $10.1 billion annual revenue company with 45,000 employees, which over 6,000 are engineers. The company has a contract that provides for the engineering design, procurement and construction of the initial plant in China and other countries. SAIC has experience doing business in almost every country in the world. For more information on SAIC, go to the company website at: http://www.SAIC.com; information on Clean Coal Technologies, Inc., go to: http://www.CleanCoalTechnologiesInc.com, or to our website, where we have a section on the company, http://www.PacificStatesCapitalCorp.com.

Clean Coal Technologies, Inc. (CCTC.PK) was formed in 2007 by merging Riverside Technologies, Inc. (a publicly traded shell corporation), Clean Coal Systems, Inc. (operating company), and Saudi American Minerals, Inc. (the company with the clean coal technology). Mostly everyone who purchased stock for cash, or was given stock for services or goods, was told that the holding period on Section 144 shares was one year. It was always the plan to become public and get the stock trading. Everyone felt at all times that they were within one year from selling their shares and getting cash. The SEC ruled on February 15, 2008 that if any company went public by the way of merging into a publicly traded shell, the stock would stay “restricted” until the company filed a registration statement with the SEC and an additional one year went by. By the time the company met all of the rules of the SEC and the Sarbanes-Oxley Act of 2002, and filed a Form 10 with the SEC, it was January 14, 2009. Some shareholders by this time had held their shares for up to 12 years without being able to sell them in a broker/dealer transaction as “free-trading” shares. On January 14, 2010 most everyone’s stock became “free-trading.” It appears that there are approximately 3,000 shareholders who could possibly sell as much as 100,000,000 shares of the stock over a 75-day period (from January 15, 2010 to March 31, 2010). In the last 13 trading sessions, approximately 12,210,592 shares have been traded. There are some really big smart buyers in the wings, but they want to make sure they are buying the stock at the absolute bottom. At $.07 per share, they could theoretically buy the entire company for $30,000,000 (patents, joint ventures, contracts, and the sales of future technology licenses, and royalty payments).

So, what does the company have going for it? Are we looking at a stock worth nothing?

On December 2, 2008 the company signed a 30-year joint venture agreement with the Sino-Mongolia International Railroad Systems, Co. Ltd. of the Inner Mongolia Autonomous Region, PRC. The Railroad company contributes all the capital for the joint venture and the company contributes its technology. The railroad has a 75% ownership stake, and the company a 25% ownership in the joint venture. The joint venture partner has a $6,000,000,000 line-of-credit for the project, and since the project has began, has spent $200,000,000. The joint venture is building an initial plant with an annual capacity of 1.5 million tons to supply clean coal for a newly constructed power station. Thereafter, production is estimated to be increased, over a 10 year period, to a total capacity of 80 million tons annually, the majority of which will be used as feed stock for coal-to-liquid production. Production is projected to commence by the summer of 2011. Phase II includes the construction of a gasification and liquefaction facility that will utilize the company’s technology and will have the capacity to liquefy 3.5 million tons of coal per year. It is projected that Phase II will be fully operational by December 2012. Clean Coal Technologies, Inc. will receive 2 ½% of the gross revenue from the sale of liquids from the coal gasification process. Phase III will increase the annual capacity of the gasification and liquefaction facility by 75 million tons – total annual capacity of the industrial park will be 80 million tons, which is the maximum annual capacity at the site given current transportation infrastructure. Phase III starts production in 2013 and is projected to be fully operational during 2018. Phase IV is to construct a second facility with the annual production capacity of one billion tons at the site of the coal mine mouth in Nomenhan of Hulun Buir. Overall, the Projected Net Income for this project, before any distributions to any partners is as follows: 2012- $5,100,000; 2013- $34,613,000; 2014- $166,321,000; 2015- $251,461,000; 2016- $339,928,000; 2017- $426,375,000; 2018- $443,709,000; and 2019- $452,239,000. Clean Coal Technologies, Inc. would generate cash flow equal to 25% of these figures plus 2 ½% of the gross revenue from the liquids part of the business.

In December 2009 the company announced a license agreement for the country of India to Ink Global, an Indian company. Unlike the above Mongolian joint venture transaction, the sale to the company in India is a sale of a license agreement for use of the technology and a royalty agreement on the coal processed through the plants. Clean Coal Technologies, Inc. will not have any capital at risk in the India ventures. Ink Global has already received from the government of India a $50,000,000 grant for the implementation of Clean Coal Technologies, Inc.’s technology in India. The transaction calls for Ink Global to build 100 - one million ton plants using the company’s technology over a 10-year period. Upon the construction of each plant Ink Global will pay for the license for that plant - $1,000,000. These should average 10 plants per year for 10 years. In addition to the license fee, Ink Global will pay $2.00 per ton for each ton of coal going through the plant. The plants will take about nine months to build, and the royalty will begin upon production of the coal going through the plant. Following is a rough budget for the 10- years. Notice, there are no cost-of-goods sold in this transaction, and no associated costs of receiving coal processing royalties.

Sale of License Agreements and Royalty Income from Ink Global (in Millions)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sale of License

Agreements 10 10 10 10 10 10 10 10 10 10 -

Royalty

Receipts - - 20 40 60 80 100 120 140 160 180

____ ___ ___ ___ ___ ____ ____ ___ ____ ____ ___

Total Gross Income 10 10 30 50 70 90 110 130 150 170 180

(in Millions)

In addition to the core technology, the company will purchase and/or license other technologies that are complementary to the existing technology. In January 2009, the company signed a Technology Option Agreement for a separation technology for carbon dioxide (CO2) as an alternative approach to “carbon capture and sequestration.” The company has hired SAIC to further evaluate the technology. The challenge of this particular technology is the cost of the energy required to make it work, and finding the solution to bringing the technology to market profitably.

The above presentation is based solely on two on-going projects in Mongolia and India. There are approximately another 192 countries that could benefit from the technology. For projects in the United States there are on-going discussions with wealthy investors, large coal burning utilities, railroads, and others to purchase license agreements and build plants. While it is usually a challenge to process a permit for anything to do with “carbon,” in the United States, it may actually be a positive to the governing class (federal and state) to have a clean coal burning plant from the point-of-view of cleaning up the environment, and as a “jobs program.”

While we are not broker/dealers (see the attached Disclosure), and we are not offering for sale any securities at this time, we feel that this opportunity is very rare buying opportunity. The company has made tremendous progress in developing and implementing its technology, and the stock today hit its all time low!

If you want to discuss this more, E-mail me at Wayne.Crumpley@gmail.com, or telephone me at (702)249-3000.

This is the way I see it, and these are my opinions . . . and I could be wrong!

Disclaimer

As used herein, “Us,” “We,” “Our,” means Pacific States Capital Corporation, all directors, officers, employees, and associated entities. We are not registered as a securities broker/dealer, a market maker, a law firm, or an accounting firm in any state in the United States, and we are not registered under the Investment Company Act of 1940, or the Investment Advisers Act of 1940. Pacific States Capital Corporation acts solely on the behalf of its clients to provide general management and financial consulting services. The information provided herein, and websites cited, are believed to be accurate as to content, but we have no way to verify each specific statement from each provider. Therefore, the content providers make no representations or warranties of any kind in connection with the subject matter, performance or the suitability of the information contained in these websites or the emails sent for any purpose and shall have no liability for the timeliness, accuracy, or completeness of the information contained herein. Such information is provided “as is.” The information contained is provided for general informational purposes only, and is not a substitute for obtaining professional advice from a qualified person, firm or corporation familiar with your personal circumstances. It is not an offer to buy or sell any security or investment. Please seek the advice of professionals, as appropriate regarding the evaluations of any specific security, report, opinion, advice or other content. By viewing these websites or accepting any email from us, you agree that we are not responsible for any trades placed by the recipients (or anyone else). This website, nor any of our emails, are neither intended to be construed to be personalized advice, nor recommendations to buy, hold, or sell mentioned securities, and readers should consider their personal situation before making any investment. All opinions expressed and information and data provided therein are subject to change without notice. Our officers, directors, employees, associated entities and /or clients of associated entities may currently maintain direct or indirect ownership positions in financial instruments (i.e., stocks, bonds, options, warrants, etc.) whose underlying exposure is in the companies mentioned in this website and in our emails. We shall have no liability for any electronic communication that is lost, intercepted or not received by the reader in a timely manner, or at all, for any reason. Pacific States Capital Corporation, its officers, directors, or affiliates have no affiliation with Clean Coal Technologies, Inc. other than as a shareholder. Clean Coal Technologies, Inc., its officers, directors, or affiliates have no financial interest, nor are officers or directors of Pacific States Capital Corporation.

Friday, October 23, 2009

October 22, 2009

Clean Coal Technologies, Inc. (CCTC) Form 10 Becomes Effective

I have some really great news on Clean Coal Technologies, Inc. (CCTC). The company has been notified by the United States Securities and Exchange Commission (SEC) that they will have no further comments on the Form 10 that was filed by the Company on January 14, 2009. This is a really big deal, a very big positive development for the Company, and let me explain why below! The Company issued a press release this morning through BusinessWire. You may find and read the press release at: http://www.businesswire.com/news/home/20091022005138/en

As you all know, the Company is trading its common stock on the “Pink Sheets” trading market. There are a lot of stock brokerage firms (broker/dealers) who will not let their brokers trade securities in “Pink Sheet” companies. While there are many fine companies traded on the “Pink Sheets,” this is not where the Company would want to trade its shares. For more information with regard to the “Pink Sheet” market, see a discussion on the SEC Website at: www.sec.gov/answers/pink.htm. To get a tone of some of the views about “Pink Sheet” companies, you can also read an article in the free internet encyclopedia, Wikipedia, at: http://en.wikipedia.org/wiki/Pink_Sheets. So, by the SEC notifying the Company that its review of the Company’s Form 10 Registration Statement, as amended, was completed, this allows the Company to prepare and file, through a sponsoring market-maker, a Form 15c2-11 under the 1934 Securities Act, that will allow the Company to begin trading its securities on the Over-the-Counter Bulletin Board (OTCBB). That will bring a lot more interest to the Company, and many more stock brokers and securities salespeople, and a more liquid security. The Bulletin Board market, again, is not exactly where you want the Company’s securities to trade, but it is a giant step up from the “Pink Sheets.” This is an important step up! After the Company files its Annual Report for 2009, on Form 10-K, due March 31, 2010, the Company will again look at upgrading its trading platform and, if appropriate, move its listing to the NASDAQ market, the largest trading market in the world (bigger than the New York Stock Exchange (NYSE)). You might also find interesting a discussion in Wikipedia regarding the NASDAQ market at http://en.wikipedia.org/wiki/NASDAQ. In addition, the Company will also consider listings on other major exchanges in the world in Europe, Asia, and South America.

While the stock has really performed poorly this entire year, the Company itself has made excellent progress. When one considers the size of the markets in which they are participating, and the fact the Company has first mover advantage, the upside, in my opinion can be gigantic. However, this Company is not a “get-rich-quick” company. When you are talking about each unit costing perhaps $150,000,000 US, the possibility there could be as many as 10,000 units needed around the world, and that the Company may earn a royalty of $2.00 - $3.00 per ton on every ton of coal processed by each unit as they get constructed, this entire business model will take awhile. We are talking here about the makings of a HUGE business!

I want to also take this opportunity to remind you we have a new Website at http://www.pacificstatescapitalcorp.com/, and I am on LinkedIn at www.LinkedIn.com/in/WayneCrumpley, at http://www.facebook.com/, and http://www.twitter.com/. I am communicating today with you using my Blog, which can be found at http://waynecrumpley.blogspot.com/. Feel free to join me on all of these platforms. Available on the above Website is a FREE 14-page Executive Report on Clean Coal Technologies, Inc. If you have any problems accessing this report, Email me at Wayne.Crumpley@gmail.com, and I’ll Email the report to you. Since Clean Coal Technologies, Inc. is Pacific States Capital Corporation’s largest single investment, we track the company, and have a section on our Website that we try to keep updated reflecting current events as the Company releases the information. You might keep checking back on our Website for current information. Also, you should check out the Company’s Website at http://www.cleancoaltechnologiesinc.com/. We are shareholders like you. We are not affiliated with the Company. We do not speak for the Company, nor are any of our officers and directors officers or directors of the Company. We are not by any means controlling shareholders. If you have any questions, comments, suggestions, find any errors in our materials, please do not hesitate to call, Email, or otherwise communicate your views. What we may say is not an official publication of the Company, but only our own opinions ( . . . and I could be wrong . . . .).

Wednesday, August 5, 2009

Announcing Website

We are making some progress with our overall efforts in working with Clean Coal Technologies, Inc. Pacific States Capital Corporation, my company since 1994, has just (yesterday) gone "live" on its own Website: www.pacificstatescapitalcorp. com Check it out and let me know what you think. Find any mistakes, have any comments, have any suggestions, let me know. In addtion to the Website, in my continuing efforts to keep a low profile, I have joined LinkedIn, www.LinkedIn.com/in/ WayneCrumpley, and Facebook, at www.Facebook.com , and have began my own blog, http://WayneCrumpley.blogspot. com. I have made a couple of entries. See what you think. Additionally, we are going to be sending out to a few accredited investors the following piece, http://www.sendithost1.com/ PacificStates/PSCC1.html. I would like to invite you to join me at LinkedIn and Facebook. These are good sites. Check them out if you are not already a member. Be back with another update soon !! Wayne Crumpley (702) 249-3000

Friday, July 31, 2009

Sell and/or Sell Short Wells Fargo & Company (NYSE: WFC)

A lot of times I find that personal experiences are the best clues as to what will be good stocks to buy or sell. If you love your IPhone or your Blackberry, buy Apple (AAPL), or Research in Motion (RIMM). I went to Home Depot (HD) a couple of years ago, and noticed they had a tremendous inventory, and no visible service personnel. Thinking HD would be a great short, I went to several other Home Depot stores in different communities and discovered the poor service was a common denominator for all the stores. Home Depot was a great shorting opportunity! I have in the last several days experienced another similar event that leads me to the conclusion that Wells Fargo Bank (NYSE:WFC) would be a good short. The stock closed today, Thursday, July 30, 2009 at $24.87, up $.49 for the day. The present P/E ratio is about 30X.
In order to reduce our debts and obligations we are selling some of our restricted stocks in private sales at a discount from the broker/dealer market. As a part of that strategy, we received a personal check from a wealthy accredited investor on Sunday, July 19, 2009. On Monday, July 20, 2009, we deposited that check at Wells Fargo Bank. A hold was placed on the funds. We followed the clearing of the funds, and the check cleared in two days, the night of Tuesday, July 21, 2009. Wells Fargo Bank placed an 11- business day (15 calendar days!) hold on these cleared funds, until August 4, 2009. This hold has no reflection as to the status of our accounts, the credit worthiness of our client, or the status of the counter-bank, which was E-Trade Bank. Now, the process of getting someone at the bank to agree to take off the hold on the account and let us use our cleared funds . . . was the interesting part. This reminded me of the Home Depot trips. NO ONE at Wells Fargo Bank, that I was allowed to talk with, had the authority to release the hold. The Operations Manager had no authority; the Lending Officers that I talked with had no authority (that included making credit card loans, auto loans, home loans, lines-of-credit); the Branch Manager had no authority; and, the Southern Nevada District Manager claims not to have the authority to remove a hold on a cleared check ! The bank seemed to be in a siege mentality. Lots of good, highly qualified, experienced people, who have NO authority, except to say, “No, . . . I have no authority.” My conclusion, with zero customer satisfaction, was Wells Fargo Bank has too many branches and too many people with no authority to make any decisions. Time to hit the books and figure out what is it that Wells Fargo is afraid of . . . are they afraid of their customers or their own employees making too many mistakes?
Doing some research, Wells Fargo earnings were $3.17 billion, or $.57 per share for the April – June 2009 quarter. But, the bank’s net charge-off rate rose from 1.54% to 2.11%. This amounted to $4.39 billion for the quarter. Credit card charge-offs rose from 10.13% to 11.59%. This amounted to $664 million for the quarter. The bank had, as of June 2009, $138.1 billion of commercial-mortgage and construction loans. Wells Fargo still owns $90 billion in risky Wachovia Pick-A-Pay loans. Wells Fargo owes the Federal government $25 billion in taxpayer aid from the Troubled Asset Relief Program. Wells Fargo is integrating Wachovia but hasn’t provided any detail about future cost-cutting measures and over-all employee reductions with the closings and consolidations of the Wachovia branch network into Wells Fargo branches. Wells Fargo has been adding 100-125 additional branches per year to its network.
It would appear to me that the bank, over the next one year period, is preparing for some major write-downs and increases in reserves, and it is my opinion we will see the following: write-downs in the credit card area; further write-downs of residential housing loans; write-downs in the Wachovia inherited Pick-A- loans; write-downs in the commercial real estate loans portfolio; and closing of unprofitable branches of both the Wachovia and Wells offices, and the associated reserves for employee termination costs. Additionally, I think we could see some additional selling by the bank of new capital stock. This will dilute the present shareholders, but will provide for a better capitalized business going forward.
I think Wells Fargo Bank will do fine, longer-term. But, with the un-employment rate for 2010 forecasted to be in the 11% range, I think Wells Fargo will have some indigestion swallowing the Wachovia deal, dealing with its credit card portfolio, residential housing loans, commercial real estate lending, and branch over-capacity. Therefore, if I owned any Wells Fargo & Company (WFC) stock, (which we do not own any shares of Wells Fargo Bank) I would immediately sell that stock for today’s closing price of $24.87, and take the money and short the shares. (A put option would probably be too risky). I would cover any shorts at around $19.00 per share, (or less) within the next 12-months. This would be an annual return of in excess of 20% per annum. You might write my opinion down somewhere and see how I did on this analysis.
In reading any comment that I make on any security, I would like to remind the reader, that while I have over 50 years of experience buying, selling, and trading securities, that I am not, nor any of my companies, are securities broker/dealers, market makers in any stocks, nor are we registered under the Investment Company Act of 1940, or the Investment Advisers Act of 1940. So, before acting on any information you get from me, you should contact a professional licensed investment advisor who is familiar with your personal individual circumstances, and understands your risks tolerance, and can explain to you the overall risks of any particular investment strategy. Remember, while this is my opinion, . . . I could be wrong!

Wednesday, July 29, 2009


This is my first ever Blog entry. For the reader of this Blog I would suggest you look me up on www.Facebook.com, www.LinkedIn.com/in/WayneCrumpley, and my company Website: www.pacificstatescapitalcorp.com . My company’s largest single stock holding is Clean Coal Technologies, Inc. (CCTC.PK), www.cleancoaltechnologiesinc.com . On this Blog I will be following closely “green energy” stocks and all related green energy developments, green energy infrastructure developments, “smart instruments,” and be generally commenting on things of interest to me. I have been investing in securities for over 50 years, and I have a lot of experience in energy stocks. I am convinced that investing in green energy and green infrastructure developments over the next 20 years is the way to become seriously wealthy. In this Blog I would expect to discuss energy, green energy, clean coal technologies, all the alternative renewable energies, smart switches, and many other related topics. I expect to keep all of my Blog entries positive, and no matter what happens on the Sunday morning news shows, I will do my best to not make any negative comments regarding the overall intelligence of members of our political establishment. On the onset I should say that I will be careful not to own as much as five (5%) percent of any company we discuss, and I will disclose up front if we own any particular stock I discuss. Neither myself nor any of my companies are registered as a securities broker/dealer, a market maker, a law firm, or an accounting firm in any state in the United States, and we are not registered under the Investment Company Act of 1940, or the Investment Advisers Act of 1940. Pacific States Capital Corporation acts solely on the behalf of its clients to provide general management and financial consulting services. None of the comments in this Blog are designed as specific personalized advice as to any particular person. Therefore, for personal financial advice, you should consult a licensed professional financial adviser who knows your personal circumstances, financial condition, earning capabilities, life circumstances, and your tolerance for risk. Also, more than ever before, we as investors need to be aware of governmental risks. I hope the reader of my Blog finds it interesting, and I hope you learn something, and as a result of reading this Blog you become a smarter, more informed, and wealthier investor.
My Blog will always give the reader my sincere opinions, . . . but, I could be wrong!