CTCC - New Leadership Set On Increasing Value For Shareholders

Over the last 52 weeks shareholders of City Capital Corp. have endured a bumpy ride. The stock has traded as high as $.46 and recently briefly dropped below $.01. Currently the stock trades for $.0219 and judging from some changes being implemented by the new CEO, this stock could start to recover its share price.

In October of 2010 CTCC experienced a change at the top and welcomed in a brand new CEO. Mr. Smuda is an expert in restructuring companies back to profitability, and looks ready for the task of bringing value back to CTCC and its shareholders. CTCC is trading right near its all-time lows indicating the market is not aware of the positive change that lies on City Capital Corps horizon.

Unlike its big board brethren, change for penny stocks is usually viewed in a positive light. Stable big board stocks tend to fall when their CEO's step down or are removed. Hewlett Packard saw its stock drop almost 20% after its CEO left. Apple's founder and CEO stepped down the other day and its stock is down almost 7% since. However penny stocks thrive on change. Stocks that have fallen dramatically can become reinvigorated when the company announces it is taking another direction, decides to change CEO's, or merges with another company. These stocks benefit from change because investors see a new opportunity. What if that merger finally brings money into this company? What if the acquisition makes this company profitable? What if this new CEO can really turn this ship around? While change with well established, long standing companies can be viewed in a negative light, change with a penny stock can present a very lucrative investment opportunity.

CTCC's new CEO recently wrote a shareholder letter which is posted on the company web site. It details the future of the company and makes me believe that CTCC's best days lie ahead. Here it is in its entirety:



The Board of Directors of City Capital, Corp. would like to share some exciting developments with its shareholders and the marketplace.

During the latter part of calendar year 2010, City Capital, Corp. began an aggressive analysis of all areas of its business, with a sharp eye on cost reduction, in an attempt to better position the Company for the future. During the initial analysis, it was determined that there were a number of inefficiencies within several subsidiaries, as well as several areas of duplicate services in the corporate and administrative departments of the Company. It was also discovered that the Companys acquisition efforts could be better targeted in order to generate a more profitable mix of sales.

City Capital, Corp. has recently begun a partner program with several key consultants throughout the nation. This program will enable City Capital, Corp. to focus on more efficiently managing the companys subsidiaries. The Company will be able to streamline operations, more adequately control costs, maintain a strict timeline, keep attention to detail, and develop a high quality team of professionals to effectively manage and grow City Capital, Corp.

Corporate overhead has been dramatically altered. Duplicate services have been eliminated and payroll reduced. Rent and utilities expenses have been changed to significantly lower rates. Additional, the company has reduced debt, and continues with an aggressive debt reduction program. Finally, corporate books and records are being updated, and quarterly financial results will be reported on a timely basis. Efficiency in each component of the company has become a priority as a constant vigil is kept on improving margins, and expanding operational cash flow.

City Capital, Corp. will soon launch a new business development campaign. This new approach will focus on extensive use of the internet to broaden the global awareness of City Capital, Corp. subsidiaries, and expose them to more potential customers. This will be coupled with selective print media advertising in specific trade periodicals to further present the high standards of quality represented in a City Capital, Corp. The Company will also primarily target three specific areas in its acquisition strategy: companies with proven assets, positive cash flow, and proven management.

City Capital, Corp. has put together a comprehensive business plan that will enable the company to build on its past successes. The Board of Directors has recognized areas of inefficiency within the company and begun to implement a plan of correction. Potential investors and shareholders will be able to view a new and improved, easy to navigate web site. The site will adequately display the company information in a concise, accurate, and timely manner. The company will constantly seek to deliver the highest level of service to our customers. By leveraging our existing customer base, City Capital, Corp. will attempt to capitalize on cross-selling activities to increase its operating efficiency and margins. Non-profitable segments will be sold or unwound. City Capital, Corp. will continue to focus on delivering a positive return on investment to its shareholders.

With these key areas of focus, City Capital, Corp. believes that it has taken the necessary steps to establish a more efficient, organized, and targeted Company. Currently, there is a strong sense of responsibility to the company shareholders as we embark on a new business development and acquisition campaign. City Capital, Corp. will focus on forming strategic alliances with business partners throughout the country, and the assimilation of specifically targeted profitable acquisition candidates. City Capital, Corp. management is extremely excited about the future prospects of the company while these changes begin to positively impact performance as it progresses through 2011 and beyond.

Here is a nice description of CTCC's new CEO:

Mr. Smuda is an expert in restructuring companies to profitability. He possesses over 25 years experience as a procurement specialist accomplished in the disciplines of materials management, inventory management, systems development and process improvements. He has held senior management positions in the domestic and international supply chain sectors, including retail, industrial distribution, manufacturing, design-build custom engineering and mail order. Mr. Smuda has developed two Free Trade Zones and numerous Bonded warehouses throughout North America to facilitate time efficiencies and product cost reductions in managing a global supply chain. For the past five years Mr. Smuda has served as president, and served on the Board of Directors of several public companies.

CTCC has a great share structure with a low tradeable float. I think if the company starts following through on its plans, this stock will start to gain interest. With the low amount of shares in circulation this stock could revisit recent highs. At this stage, with the new CEO, and the new direction of the company, this stock, in my opinion, should be trading higher than it is today. If the company comes through for its shareholders and Mr. Smuda can bring CTCC to profitability this stock should at least recover 50 of its recent decline from $.46.

No matter how you slice it, CTCC appears to be turning things around and that should be reflected in its share price going forward. This should be a stock to watch for quite some time.