City Loan, Inc. (fka CYLN)

[SeaCoastStephen]

News Letter For December 3, 2008

Benefit from the Recession!

The National Bureau of Economic Research effectively mastered the obvious Mondaywith the pronouncement that the U.S. economy is in a recession. Over the past 6 to 12 months, everyone from stockbrokers to street vendors have felt the pinch as the credit market dried up, jobs disappeared, and 401K's were decimated. Althoughthe average recession lasts 13 months, it's becoming quite apparent that this most recent economic slowdown is anything but average.

So, as the Dow dips again and crude oil retreats below major psychological support at $50, a prolonged recession seems imminent. However, while the financial markets remain a collective mess, some public organizations are exhibiting their ability to thrive in troubled economic times and produce gains for investors. Two of which that I have identified in recent months are Pinnacle Energy Corp (PENC) and City Loan Inc. (CYLN).
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PENC up 58% in 3 Days

Over the past 4 trading sessions, shares of Pinnacle Energy Corp. (OTCBB: PENC)
have rebounded nearly 93% from their 52-week low of $.41 reached on 11/24.
With regard to other bullish trends currently being exhibited by the
stock, PENC is up $.29 or 58% from its 11/25 close and has seen
10-day volume more than double.

Even though crude oil is now just about $100 cheaper per barrel than
its July highs and gasoline is now priced above $2 per gallon in just 3
states, junior oil & gas exploration company PENCholds a great
deal of future potential and investors are taking notice. The company
continues to secure additional leases for crude oil and natural gas
reserves and has publicly stated potential drilling plans through 2011
that include as many as 43 wells.

Pinnacle, which plans to commence drilling operations in 2009, recently
announced a property acquisition expected to bolster its proven,
probable and possible reserves of up to 214,000 barrels of oil and
839,000 Mcf of natural gas.With plans to soon expand its current
reserve report to account for a 25% interest in a new 2,000-acre
natural gas field in Pawnee County, Oklahoma, the market appears to be
quite optimistic regarding Pinnacle's future production prospects.
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City Loan Inc: Flourishing in a Troubled Economy
A new corporate profile on City Loan, Inc. (OTCBB: CYLN) will soon be available
at www.microstockprofit.comhttp://www.microstockprofit.com/wp-content/uploads/2008/12/cyln-company-profile.pdf.

I strongly suggest taking a look as the company employs a rather unique business
model that is proving its ability to thrive in a down market. While the stock has
struggled recently, I'm pretty confident that the company's improving financials
will translate into gains for investors down the road.

Although some may turn their nose up to the company's bread and butter - high interest
auto title loans - the strategy is proving to be quite lucrative. Despite the stock
now trading at the low end of its 52-week range, business has never been better
at CYLN. This was exemplified by recently reported record financial results that
were highlighted by record quarterly revenues of $1.5M and net income of $177K.
The company provides investors with a multitude of compelling reasons to take a
deeper look into its operations. Some of these include:

(1) CYLN employs a business model designed to capitalize on a "bad times" industry
which allows the company to benefit from a number of negative economic trends including:
tightened credit markets, increased unemployment, and rising consumer debt;

(2) Anticipated 2008 un-audited revenue of $5.2M;

(3) Recently appointed CFO David Burke was Vice President of Citibank from 2004
to 2006 and Vice President of J.P. Morgan Chase & Co. from 2001 to 2003;

(4)Revenue of $1.3M for the quarter ending June 30, 2008, representing a 6% increase
over the prior year period;

(5) Bad debt rate is less than one percent as credit card companies anticipate write-off
rates of ten percent next quarter and the delinquency rate for one-to-four-unit
residential properties reaches 6.41% at the end of Q2 2008;

(6) Employment of extremely profitable, yet potentially predatory business model
that utilizes an introductory interest rate of 25%, which can mature into a triple
digit APR if a loan is not paid back in full after 30 days; and

(7) The company aspires to increase exposure of its auto title loan product and
keep overhead low through collaboration with the more than 13,000 non-bank financial
service companies and 13,000 pawnshops throughout the U.S.
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Net-Net
As the economy continues to flounder, why not take a closer look at two small caps
proving their resilience to negative external trends and now trading at prices significantly
lower than their logically attainable and surpassable 52-week highs?
With PENC showing promise for another green close on Tuesday and CYLN exhibiting
potential for longer-term gains, I firmly believe that a few hours of research
on both companies could pay off dearly in the future.
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Vol: 4 - Issue: 4
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