I have discussed many of my "penny stock" investments on this site and the successes I have had with them. One of my favorites, Carbon Sciences, got a nice boost today in stock price (up over 30%), due to a rather significant announcement regarding their development of capturing carbon emissions and converting it to usable fuel. Considering there has been a lot of interest in this company, I felt it was appropriate to post the press release:

SANTA BARBARA, CA--(Marketwire - January 25, 2010) - Carbon Sciences Inc. (OTCBB: CABN) (CABN), the developer of a breakthrough technology to recycle carbon dioxide (CO2) emissions into gasoline and other portable fuels, today announced the development of certain process technologies that will allow for the production of gasoline, shorten the time to commercialization and reduce the system and operating costs of its CO2-to-Fuel technology.

The company's current approach is an enzyme-based process used to transform CO2 into low-level fuels, such as methanol. Dr. Naveed Aslam, chief technology officer of Carbon Sciences, has now discovered a new and more cost efficient process to produce gasoline, a high-level fuel, from CO2. The key features of this breakthrough includes (1) the of use flue emissions directly from coal-fired power plants or industrial factories, eliminating the need for "clean" CO2, (2) the use of brackish water, eliminating the need for distilled freshwater as the source of hydrogen and reaction medium, (3) mild operating conditions, eliminating the need for capital intensive stainless steel equipment, and (4) a highly scalable system to transform large quantities of CO2 into gasoline for use in the existing transportation infrastructure.

Elaborating on the business implications of this new breakthrough, Byron Elton, CEO of Carbon Sciences, said, "We always wanted to produce high-level fuels, such as gasoline, but knew that additional steps would be required to reach this goal. Now, we have the way to go directly to gasoline." Mr. Elton commented further, "The United Nations' IPCC estimates that the cost of simply capturing CO2 for applications, such as underground sequestration or transformation into products, can range from $45 to $73 per ton of CO2. This cost is perhaps the single biggest economic barrier to any large-scale CO2 applications, such as carbon sequestration. However, by being able to use a raw CO2 flue gas stream in our CO2-to-Fuel technology, we are no longer dependent on the success or commercial availability of carbon capture systems. In addition, unlike biofuels based on growing plants to absorb CO2 from the air, our CO2-to-Fuel process is an industrial process that can produce fuel in minutes to hours, not months to years, to meet the demands of the world. These breakthroughs demonstrate why we continue to believe that Carbon Sciences is developing the most powerful and sustainable fuel technology in the world."

Commenting on the development roadmap, Dr. Aslam stated, "We are very excited about these new processes. Our end-to-end CO2 to fuel system will have several modules. We have determined that one of these modules can function as a standalone system for use by a sizable part of the energy industry for the production of gasoline. Inquiries from potential strategic partners have further validated our decision to focus on this module. We are anticipating a shorter than normal development cycle for this module and are hoping to achieve commercialization in less than one year."

Due to popular demand and a lot of interest from many of you, I thought I would take a non eventful Sunday evening to expound a bit more on a couple companies that I invested in last year that have been showing recent signs of strength. As I have always said, I try to remain as diversified as I can when dealing with my portfolio. I always like to have a small portion of my portfolio invested in IPO or R&D penny stock companies that I feel have great potential in the future. I allocate enough to these companies where if they hit big, the reward is very big. However, I always invest an amount that if I were to lose everything, it wouldn't kill me, because more risk comes with these smaller companies. Historically, I have found that if I invest in 10 IPO's or start up companies, I usually see the following results: 3 end up dead beat stocks (pump and dump), 4 I break even or get close to breaking even, and 2 or 3 I make good revenues, with 1 being very profitable. So, for me it's a numbers game and has worked quite well.

I wanted to focus on two different companies that I invested in last year that I see a great potential in, given our current government in office. Some of you have heard me talk about them on the chat, so I apologize for the replication for some of you. The two companies I will be talking about are Origin Oil (OOIL) and Carbon Sciences (CABN).

Origin Oil
Origin Oil is a company that is currently developing the technology to transform Algae into oil. The procedure is much more effective than the current "ethanol" procedure, which can be harmful to the environment and is very costly. Origin Oil has the patent-pending technology that transforms algae to oil in a much more cost effective procedure than ethanol. The big question is being if they can do this on a mass scale and breaking down the cell wall. However, if it is scalable, the reward could be very big.

Oil giants like Chevron have already shown great interest in pursing algae driven oil (http://www.bizjournals.com/eastbay/stories/2008/01/21/daily22.html). Origin Oil's technology acts as a compliment to their research as their plan is to license the technology (their technology develops the oil faster and helps in self-generating the algae) in the future to companies such as Chevron and Exxon.

Origin Oil recently partnered with The Department of Energy which was a very big step in their development and shows the progress of their research (http://www.bizjournals.com/eastbay/stories/2008/01/21/daily22.html) . They are probably a year or so out from marketing the technology, but there is a lot of upside for this company. Here are a couple video clips from Fox News and other news programs on Origin Oil - (http://www.originoil.com/latest-news/moneytv.html).

Carbon Sciences
The other company I see great potential in is Carbon Sciences. Carbon Sciences is a company which is developing the patent-pending technology of transforming harmful CO2 emissions into usable fuel. Sounds too good to be true, huh? You would be surprised at how far along they are at getting there. In fact, last week they announced that their prototype had been completed and that it indeed works. This caused for the stock price to bounce 60%. The big question for them is also if it's scalable. They will be demonstrating the model probably later this month, but their next step is attempting to get this model to work on a large scale so that it may work with large plants.

Carbon Sciences also plans to license out the technology eventually and will most likely be bought out, if indeed the technology becomes scalable. Last week, USA Today featured Carbon Sciences, talking about their innovative technology (http://www.usatoday.com/money/industries/energy/environment/2009-02-24-carbon-dioxide-gasoline_N.htm). Here is also a link that features Byron Elton, President and COO of Carbon Sciences, on Money TV (http://www.carbonsciences.com/01/news.php).

Both of these companies are top on my list of penny stock companies with strong potential in the future. If either of these prove to be scalable and can accomplish their goal, I honestly believe they could be a $15-$20 stock, easy. Sure, this is a big if, and if it were already decided, the stocks wouldn't be currently available under $1. I invested in both before they went public and they both have been very profitable for me thus far. Instead of cashing out of my already earned profits, I plan on sticking with them for the next couple years and see if I can get the much larger upside.

I've tried to allocate some money to green energy as I believe it's the oil of the future. Sure, alternative energy has taken a back seat, lately, due to lower energy costs and the massive reduction in oil prices. However, sooner or later oil will be back at higher prices and once again people will become more aware of alternative energy. Also, with the current administration, there are very large incentives coming to companies that are willing to participate in green practices and alternative energy.

If you are interested in investing in either of these companies, they are traded on the OTC markets (over the counter) and symbols are CABN and OOIL. I know there are tens of thousands of penny stocks out there and most seem like "pump and dump" companies that end up going nowhere, but these are two gems that stick out to me and has already proven that they are players in the market and I really feel there is great potential with both companies.

If you are interested in a special investment opportunity with either of these two companies, I can put you in touch with them about a special limited opportunity they are having with private investors, that could be very profitable. Email me with subject line CABN or OOIL to crashmarketstocks@gmail.com and I will forward you more information of who to get in contact with to find out more about the opportunity. It is worth looking in to if you enjoy these stocks that are under $1.

Chinese markets are getting killed right now, so it will be interesting to see how US markets respond. I'm hoping to continue to see green in my Zecco.com account and maybe find some new entry points for some stocks. Have a good night everyone and see you tomorrow bright and early. Happy Trading.