Providing investors with the
tools to make informed decisions.
Providing investors with the
tools to make informed decisions.
 Tracking 1241 U.S. listed China Stocks and Counting...
 Tracking 3059 U.S. Stocks and Counting...

 Worldwide Energy (PINK:WEMU)

Tuesday, May 22, 2012
Investor Alert

SOUTH SAN FRANCISCO, CA--(Marketwire - May 21, 2012) - Worldwide Energy & Manufacturing USA, Inc. ("Worldwide" or the "Company"), a supplier of photovoltaic (PV) solar modules under the 'Amerisolar' brand, and a supplier of contract manufacturing services for mechanical and electronic products manufacturing, today announced that on May 16, 2012, the Securities and Exchange Commission issued an order revoking the registration of the Company's common stock. As a result of this order, the Company's common stock, which was quoted on the OTC Links under the symbol "WEMU," is no longer publicly traded. As announced on April 13, 2012, the Company is currently subject to an investigation by the Securities and Exchange Commission related to the matters disclosed in the Company's August 4, 2011 Form 8-K and the Company's failure to timely file its periodic reports. The Company has not filed any periodic reports with the Securities and Exchange Commission since its September 30, 2010 Form 10-Q. Although the Company submitted an Offer of Settlement (the "Offer") consenting to the revocation of the registration of its common stock pursuant to Section 12(j) of the Securities Exchange Act of 1934 and the SEC accepted such Offer, the SEC investigation related to the matters disclosed in the Company's August 4, 2011 Form 8-K and the Company's failure to timely file its periodic reports continues.

As the Company's registration has been revoked, there is no longer a public market for its Common Stock. Therefore shareholders are prohibited from transferring or selling their shares except in exempt transactions that are in compliance with the United States and applicable state securities laws.

The Company intends to announce future material developments as they occur.


Sunday, May 13, 2012
Going Private News
The Company is evaluating strategic alternatives in order to satisfy its creditors and to provide working capital for ongoing operations. These strategic alternatives include the sale or closure of some or all of the Company’s business units and/or business divisions. The Company is in discussions with the management of its Nantong Joint Venture, Worldwide Energy and Manufacturing (Nantong) Co., Ltd. (the “Nantong JV”) regarding the future operations and ownership of the Nantong JV. The Company has also commenced a process to solicit and consider offers from interested parties for some of the Company’s business units. At this time, the Company has made no determination with respect to the future operations and ownership of the Nantong JV or the sale of any business unit.

Saturday, December 3, 2011
Resolution of Legal Issues
On November 21, 2011, Worldwide Energy & Manufacturing USA, Inc. (the “Company”) entered into a Forbearance Agreement (the “Agreement”) with Bank of the West (“Bank”) relating to that certain Business Loan Agreement dated as of May 20, 2008, as amended, (the “Loan Agreement”). Pursuant to the terms of the Loan Agreement, the Company issued to Bank a promissory note in the original principal amount of $2,000,000 on May 20, 2008 with an amended maturity date of November 30, 2011 (“Note No. 1”) and a promissory note in the original principal amount of $500,000 on May 20, 2008 having a maturity date of June 1, 2012 (“Note No. 2”, and collectively with Note No. 1, the Loan Agreement and all related ancillary documents, the “Loan Documents”), issued to Bank by the Company pursuant to the Loan Agreement. As of October 1, 2011, Note No. 1 had an unpaid principal balance of $1,250,000 plus accrued and unpaid interest owing of $4,687.50. As of October 1, 2011, Note No. 2 had an unpaid principal balance of $111,111.08 and accrued but unpaid interest owing of $338.54.

Saturday, July 23, 2011
Investor Alert

On July 18, 2011, Worldwide Energy and Manufacturing USA, Inc. (the “Company”) received notice that the obligations of the Business Loan Agreement (the “Loan Agreement”) dated as of May 20, 2008 between the Company and Bank of the West (the “Bank”) and related ancillary documents (collectively with the Loan Agreement, the “Loan Documents”) have been accelerated by the Bank. According to the Bank, an event of default has occurred and is continuing under the Loan Documents due to:

(i) the Company’s failure to furnish the Bank with its annual financial statements for the fiscal year ended December 31, 2010 by April 30, 2011;

(ii) the Company’s failure to furnish the Bank with its quarterly financial statements for its fiscal quarter ended March 31, 2011;

(iii) the change in the Company’s management, as previously disclosed in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on April 27, 2011, constitutes an “Adverse Change” under the Loan Documents; and

(iv) due to the aforementioned change in management, the Bank believes itself insecure under the Loan Agreement.


Sunday, June 12, 2011
Corporate Governance

On June 3, 2011, shareholders of Worldwide Energy and Manufacturing USA, Inc. (the “Company”) holding a majority of the outstanding common stock of the Company (the “Majority Shareholders”), took action by written consent, dated as of June 3, 2011, in order to remove the following directors from the Company’s Board of Directors:

  • Mindy Wang
  • Dora Dong
  • Lauren Byrne
  • Jeff Watson
  • Michael Steingrebe 

Additionally, pursuant to their action by written consent dated June 3, 2011, the Majority Shareholders appointed the following individuals as directors to fill the vacancies on the Company’s Board:

  •  Aaron Todd Switz
  •  Michael Edward O’Connor, Jr.
  •  Todd Michael Altman

Thursday, May 5, 2011
Investor Alert
Worldwide Energy & Manufacturing USA, Inc. did not file its Annual Report on Form 10-K for the fiscal year ended December 31, 2010 on a timely basis. The Company had previously filed an extension notification with the Securities and Exchange Commission for its audited annual financial statements for the period ended December 31, 2010 that were due on March 31, 2011. The delay in filing its Form 10-K is due to the review of agreements concerning the transfer of 48.9% ownership of the Company’s subsidiary, Worldwide Energy & Manufacturer (Nantong) Co., Ltd. (“Nantong”) that could affect reported 2010 financial results. As previously described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2009, the Company had been in negotiations with the Solar Division management team regarding the transfer of equity ownership of Nantong. In 2010 and 2011, the Company signed certain agreements concerning the transfer of 48.9% ownership of Nantong to the management of Nantong.

Saturday, April 30, 2011
CFO Trail

On April 26, 2011, Michael Toups resigned from his position as Chief Financial Officer of the Company.


Investor Alert
On April 25, 2011, the board of directors (the “Board”) of Worldwide Energy and Manufacturing USA, Inc. (the “Company”) removed Jimmy Wang from all offices and positions that he held with the Company, including his positions as Chief Executive Officer and Chairman of the Board of the Company.  Mr. Wang remains a director of the Company.  In addition, the Board took action to remove Mr. Wang from all offices, positions, and directorships that he holds with the Company’s subsidiaries and affiliates.

On April 25, 2011, the Board also took action to remove Mindy Wang from all offices and positions that she held with the Company, including her positions as Secretary and Treasurer of the Company.  Mrs. Wang remains a director of the Company.  In addition, the Board took action to remove Ms. Wang from all offices, positions, and directorships that she holds with the Company’s subsidiaries and affiliates.

Friday, February 25, 2011
CFO Trail
On February 19, 2011, Gerald DeCiccio resigned as Chief Financial Officer of Worldwide Energy & Manufacturing USA, Inc. (the “Company”). Mr. DeCiccio did not have any disagreements with the Company. On February 23, 2011, the Board of Directors of the Company appointed Michael Toups as its interim Chief Financial Officer.

Wednesday, December 29, 2010
Comments & Business Outlook

SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA--(Marketwire - December 29, 2010) - Worldwide Energy & Manufacturing USA, Inc. announced today that it expects fiscal year 2010 revenues to come in at the high end of its guidance based on the year-end sales strength that the Company is experiencing.

On December 7, 2010, Worldwide provided revenue guidance of between $160 million to $165 million for fiscal year 2010, a record for the Company. The update to the Company's revenue estimate is based on the strength it sees from contracts and commitments, primarily from its Solar Division. The Company's 'AmeriSolar' brand of photovoltaic solar modules continues to capture increasing market share globally and is building momentum and gaining recognition.

"Worldwide Energy & Manufacturing's revenue continues to grow rapidly as reflected in the revision of our 2010 revenue estimates to be the upper end of our previously stated range," said Jimmy Wang, CEO of Worldwide. "We are benefitting from strong international demand for PV Solar systems, particularly from Europe, which is a significant market for our AmeriSolar brand. Going forward, we expect to see strong demand for our products based on an overall increase in global demand for the adoption of clean, reliable solar energy solutions


Tuesday, December 7, 2010
Comments & Business Outlook

Worldwide estimates that its 2010 revenues will increase by approximately 160% to between $160 million to $165 million. The revenue estimate is based on contracts and commitments primarily from the Company's Solar Division, which continues to capture increasing market share globally with its 'AmeriSolar' brand of photovoltaic solar modules. In addition, the Company anticipates that its margins will continue to improve as it ramps up production at its new, wholly-owned state-of-the-art manufacturing and research facility in Nantong, China, which has an initial manufacturing capacity of 100 megawatts and a highly competitive cost structure. 

"We expect to achieve significant revenue growth for the fiscal year ending 2010 and going forward given the strong growth we see in the global solar market and increasing demand for our AmeriSolar PV modules," said Jimmy Wang, CEO of Worldwide. "Europe continues to be a strong market for our products, particularly for us in Italy and the U.K, and we anticipate that Asia and the U.S. will become growing markets in the next three to four years, where we are already well positioned. Solar is a very fast growing industry within the clean tech sector and we are confident that we are taking the right steps to aggressively grow our customer base as spending on renewable energy continues to rise."


Tuesday, November 23, 2010
Comments & Business Outlook

Third Quarter 2010 Financial Highlights

  • Revenues for the third quarter of fiscal year 2010 increased by 139.3% year-over-year to $44.6 million, up from $18.6 million in the third quarter of 2009.
     
  • Solar division revenue increased by 157.6% to $40.0 million, up from $15.5 million in the same period a year ago.
     
  • Net income attributable to Worldwide for the third quarter decreased 40.5% year-over-year to $1.2 million, compared with $2.0 million for the third quarter of 2009.
     
  • Gross profit for the third quarter increased 48.7% to $4.0 million, up from $2.7 million a year ago; Gross margin was 8.9%, compared to 14.4% in the same period last year.
     
  • Operating income and operating margin for the third quarter were $0.4 million and 0.9%, respectively, compared to $1.3 million and 7.2%, respectively, in the third quarter of 2009.
     
  • Earnings per diluted share were $0.21 for the quarter, compared with diluted EPS of $0.55 achieved in the same period a year ago.

Jimmy Wang, CEO of Worldwide, stated, "We achieved triple-digit sales growth for the sixth consecutive quarter, driven by strong demand for our PV solar modules. Although market dynamics negatively impacted our margins during the quarter, demand for our modules continued to increase significantly, and our solar backlog currently stands at a record $106 million. By working toward a competitive environment for our supplier base as well as leveraging economies of scale to negotiate with suppliers, we expect to see a rebound in profitability in the near future."

Mr. Wang continued, "Looking ahead, we plan to continue growing our solar business through our recently opened manufacturing and research facility in Nantong, China. We believe that the solar energy industry offers us our greatest growth and profit potential, and we anticipate improved performance for the rest of 2010 and into 2011."


Tuesday, August 17, 2010
Comments & Business Outlook

Yesterday, WEMU reported 2010 second quarter financial results:

  • Revenues Up 286.2% Year-Over-Year to $39.8 million.
  • Net Income Attributable to Worldwide Reaches $1.3 million, Up From Net Loss of $1.1 Million.
  • EPS of $0.23, Up From $0.30 Loss Per Share in 2Q09

Jimmy Wang, chairman and chief executive officer of Worldwide, stated: "We are excited to report another record revenue quarter, as well as strong financial results in our second fiscal quarter. Our success in penetrating the solar module market through our AmeriSolar brand is clearly showcased by the dramatic increase in solar revenues during the second quarter, and we also benefited from the effects of stabilizing market prices and a significant increase in demand over 2009 levels. Our manufacturing division experienced similarly strong growth this quarter, driven by an increase in order shipment volume. The Company enters the second half of 2010 with a record backlog, which currently stands in excess of $100 million. The brand new solar manufacturing and research facility in Nantong is completed, and we have high expectations for the plant's contribution to the Company's financial performance in the near future."

GeoTeam note: A closer inspection of the results reveals that, after adjusting for non-cash items, WEMU actually reported EPS of $0.03 results for the 2010 second quarter vs. $0.07 in the second quarter of 2009.


Thursday, July 22, 2010
Comments & Business Outlook

The Company has secured contracts in its second quarter with 15 new solar customers, located primarily in Germany, France, Italy, and the United Kingdom, bringing the Company's total client base for its Solar Division to roughly 60 customers. Orders from the new clients average more than 1 MW of power each, with the largest accounting for 17.5 MW. Additionally, the Company's total order backlog now exceeds $100 million, and management expects the majority of the pending orders to be completed and shipped by the end of the year.

Worldwide estimates that it delivered a total of more than $38 million in orders during the second quarter, compared with $10.3 million in the same period last year, an increase of about 270% year-over-year. The Company's solar division alone shipped roughly $35 million in orders in its second 2010 fiscal quarter, an increase of roughly 370% from second quarter 2009 sales of $7.5 million.

Global demand for photovoltaic solar panels continues to show enormous growth potential for the second half of 2010. Solar research and consulting firm Solarbuzz recently raised its projection of the 2010 photovoltaic market size to 15.2 GW, more than double 2009 installations of 7.5 GW. Companies in the industry generated estimated revenues of $12 billion in the first quarter of 2010, or almost 300% greater than first quarter revenues in 2009.

Worldwide's Chief Executive Officer, Jimmy Wang, stated: "Our strong order backlog and new client additions in the recently ended second fiscal quarter speak to the quality of our products and our growing industry exposure. As we enter the second half of our fiscal year, we are very optimistic and expect to deliver continued strong financial performance for the foreseeable future."

Source: Globe Newswire


Tuesday, July 20, 2010
Research

Our intent over the short-term is to build a check list to assess the risk position of firms in the ChinaHybrid space. For the time being this will consist of the following: (this list is likely to grow substantially)

-Is the company's auditor ranked in the top 100?
-Is the auditor located in the U.S.A? If located in China the PCAOB (Public Company Oversight Board) may be denied access to investigate the practices of the auditing firm.  Short sellers have been using this information as a tool to validate their opinions. 
-Are the company's internal controls satisfactory?
-Are their any outstanding legal issues?
-Do the company's top ten customers represent less than 10% of revenues?
- Operating cash flow divided by current liabilities is greater than one. The higher the better.

- Cash divided by current liabilities. This is an the most conservative liquidity ratio. The higher the better

- Is the company buying back stock?
- Chinese filings match respective SEC filings.(In process)

 

Criteria Meets Criteria Notes
 Top 100 Auditor No Windes & McClaughry Accountancy Corporation
Auditor Located U.S.A Yes Irvine, California
 Satisfactory Internal Controls No Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of March 31, 2010, our disclosure controls and procedures were not effective. In light of the foregoing, we have introduced and plan to implement a number of remediation measures to address the material weaknesses described above.
 No Legal issues Yes None Found
 Customer Concentration No At March 31, 2010, one customer accounted for more than 10% of our quarterly sales with a sales mount of $19,871,031 or 65.5% of sales
Cash Flow Ratio is Greater than 1 No 0.17
Cash Ratio is Greater than
1
No 0.56
Buying Back Stock/Insider Buying No n/a
 

Short term and risk adverse investors should be aware of the quality issues currently present in the ChinaHybrid Space, questioning the validity of what seem like solid fundamental stories. It is beginning to get ugly so be cautious and understand that more pain may have to be endured, as ChinaHybrids are easy prey for short investors. The broad brush that is being applied to theses stocks appears unfair, but we can’t ignore the psychological impact this can have on investors’ portfolio decisions. If history is our guide, fear will eventually create an immense opportunity to invest in the companies that prove they can meet quality litmus tests and enact shareholder friendly moves. Credibility can also be restored if independent legal/SEC opinions validate accounting practices currently in question.

We have yet to verify if the Chinese filings for ChinaHybrid stocks we monitor match respective SEC filings. We are in the process of completing this task.  Conservative investors may want to limit exposure or buy put options on stocks, that have this availability, as insurance against long positions, until we publish our findings.  Odds are we will identify some promising companies that will fail this litmus test.


Financial Target Agreements
Additionally, as further consideration for a January financing  transaction, we, along with the investors, entered into a make good escrow agreement with certain of our insiders who along with the Company will place an aggregate of 1,970,956 shares, that are already issued and outstanding, of our common stock into escrow, to be distributed if certain financial milestones of the Company are not met. Pursuant to the terms of the make good escrow agreement, if the Adjusted EBIDTA reported in our 2010 Annual Report is less than $4,000,000, then the investors shall be entitled to receive on a “pro rata” basis, determined by dividing each investor’s investment amount by the aggregate of all investment amounts delivered to us by the investors, for no consideration other than their part of their respective investment amount at closing, some or all of the escrow shares determined according to a prescribed formula.

Wednesday, June 16, 2010
Comments & Business Outlook

Second quarter revenues are expected to exceed $30 million, an approximate 200% increase compared to the same period a year ago.

Commenting on today's news, Chief Executive Officer Jimmy Wang stated, "It is with great pleasure that we provide our shareholders with such a positive quarterly update. The numbers we provided to the marketplace in the first quarter as well as the anticipated revenue numbers for our second quarter are outperforming the expectations that we previously held for the Company internally. The Company will keep shareholders well informed of any new developments and will release new positive forward-looking guidance when the second quarter financials are released in August 2010. At this point, we fully anticipate a record year for the Company and we remain very confident in our business model for the foreseeable future. We look forward to sharing any additional information with our shareholders as it becomes available."


Tuesday, June 8, 2010
GeoSpecial Notes

Added to the GeoSpecial list on December 3, 2009 @ $5.20
 
Catalyst: Significant contract news and financial guidance indicated that WEMU was on its way to a swift turn around in its operations.
Peak performance: Reached a high of $6.25 on March 16, 2010
Current Price: $3.95
 
Current road block:  The Company threw us for a loop on January 27, 2010 when it announced that it was issuing shares for expansion purposes. While the move may increase margins and add capacity, it also resulted in a whopping 47.3% increase in WEMU's share count (94.5 % if warrants are included). Thus, we are postulating that dilution could be an issue in the near-term; Company has yet to hit its financial targets since we have followed the company; Company has not issued full year guidance despite the existence of EBITDA make good targets tied to its recent financing (WEMU does expect to issue guidance upon the releases of  its 2010 second quarter report); Constant amendments to its filings for issues as simple as share count; Lack of non-GAAP EPS presentation in its press releases;  Investor sentiment will be tied to oil prices; The company also indicated that it sees 2010 second quarter net income to be conservatively higher than the 2009 comparable period.  Without an EPS target we need to be mindful of dilution.

Remains on the GeoSpecial list, on a thin line.   Despite dilution WEMU was still able to grow its EPS in its 2010 first quarter. Still, issues of near term dilution will weigh on our minds. We are also tepid due the financial clarity concerns.

Liquidity seems in tact:

"We will continue to focus on the expansion of our renewable energy division by the continued development of our newly established solar factory in Ningbo, China as well as the continued quality enhancements of our solar module brand, "Amerisolar".  Additionally, we intend to develop the U.S. solar module market and plan to expand our operation in this market. We believe that the renewable energy division offers us our greatest growth and profit potential in both the present and foreseeable future. We presently have enough liquidity to meet our expansion plans. However, depending on growth the Company may need additional funding in the future."


Friday, December 4, 2009
Special Situations

Recall in that on July 22, 2009 we removed Worldwide Energy & Manafacturing from the GeoBargain list.

Subsequently:

  • The Company had announced that it would not meet previously issued guidance
  • The CFO resigned

We were also concerned with the abundance of financial restatements for what seemed to be routine matters.

It appears that Worldwide Energy is garnering investor interest once again. In its November 5, 2009 third quarter conference call the Company issued new guidance.

Year Ends December Full Year 2009 Guidance a Full Year 2008 Reported Period Change
GAAP Revenue $60.0 million $45.9 million 30.7%
 EBIDTA b $2.8 million $2.0 million 40.0%
Non-GAAP EPS  $0.50 $0.29 b,c 72.4%

a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

bEBITDA and Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time,  differ from company supplied figures.

c GeoCalculated Figure

While the guidance is not as aggressive as in the past, it is more "believable", still implies impressive growth and offers room for upside.  (The initial EPS  guidance was close to $1.00)

On a positive note, Worldwide Energy recently reiterated its guidance once again,  instilling a degree of confidence that WEMU will not disappoint this time around. New 2010 contract wins announced over the past three days, totaling over $45 million, gives the Company a great jumpstart on 2010 and increases the likelihood that it will meet general 2010 EPS growth goals of at least 30%.

Also impressive is the CFO' ability to articulately address difficult investor questions.

One thing investors should keep in mind is that WEMU's pricing environment can experience volatility, posing a challenge to forecasting EPS even when a revenue backlog is available.  If the Company does meet its 2009 tax-adjusted EPS goals and attains a P/E of 25, WEMU shares could approach $12.50.  If not for the WEMU's recent hiccup, we would have coded it as a GeoBargain. For now, we will take it one quarter at a time.


Thursday, August 20, 2009
Comments & Business Outlook

"Though we will not meet our $100 million revenue goal in 2009, I am confident we will generate $60 million in revenue; EBIDTA of $2.5 million or approximately 70 cents and a net income of approximately $2 million, or approximately 56 cents per share. Our solar division continues to drive the growth in our company. We expect 2010 to be a blockbuster year for our solar division. We continue to focus on building our solar module division and enhancing our factory operations."

FULL YEAR 2009 Guidance Ending December a


  Full Year 2009 Guidance Full Year 2008 Reported Period Change
GAAP Revenue $60.0 million $45.9 million 30.7%
 EBIDTA b $2.5 million $2.0 million 25.0%
Non-GAAP Net Income b,c $2.0 million $782.0 thousand 155.8%
Non-GAAP EPS b $0.56 $0.29 93.1%
Fully Diluted Shares 3,571,428 2,731,995 30.7%

Source: See Release, August 19, 2009

a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

b EBITDA and Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time,  differ from company supplied figures.

c GeoCalculated Figure




Wednesday, July 22, 2009
GeoBargain Notes
The GeoTeam® is removing Worldwide Energy from the GeoBargain List. We are a little concerned about the state of the solar industry and the related negative investor perception.    We will reevaluate after the release of the Worldwide second quarter financial press release. The long-term story still appears solid.

Monday, April 20, 2009
Research

GeoNuggets®- Quick Check List Highlighting Undiscovered Opportunities

Worldwide Energy & Manufacturing USA, Inc. (OTCBB:WEMU)

Price (4/19/09): $4.50   
Trailing P/E (tax adjusted): 11.54

Fiscal Year Ends In December

12 Months trailing EPS (tax adjusted): $0.39*
2009 Company Guidance (tax adjusted): $3.2 million**
2009 Implied EPS Guidance (tax adjusted): $0.91***

* EPS numbers have been adjusted by the GeoTeam to add back share holder compensation expense and reflect a standard United States tax rate.

** 2009 guidance has been adjusted by the GeoTeam to reflect a standard United States tax rate

***The Company did not provide 2009 EPS guidance.  The GeoTeam® calculated an implied 2009 EPS guidance number using year end outstanding shares of 3,509,512.

Company Description: Worldwide Energy & Manufacturing Specializes in PV panel, mechanical, electronics and fiber optic products manufacturing. The company's global customer base includes those in the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment.

Reasons for optimism

1. The company meets seven out of ten GeoBargain categories

No


Recent 52-week high

Yes


30% Earnings Per Share (EPS) growth rate

Yes


10% revenue growth year over year

Yes

Strong balance sheet

No


15% minimum return on equity (ROE)

No


8% minimum pre-tax margins

Yes


Under 50 million shares outstanding

Yes


High insider ownership

Yes


Limited institutional ownership

Yes


P/E at least 1/2 of EPS growth rate

2. With its renewed focus the company operates in a favorable Industry as it is aggressively targeting the Solar Market.

3. The company’s 2009 solar order backlog of $52 million already exceeds 2008 revenues of $45.9 million.

4. The company should begin to realize efficiencies from it new manufacturing facility in China, reducing the need to outsource its production.

5.  The company is forecasting 2009 net income to increase over 200% to $5 million.

Potential valuation scenarios if the company can achieve its EPS growth goals

Short-Term Potential value based on fully taxed adjusted trailing EPS 

  • P/E 15*  $0.39= $5.85
  • P/E 20*  $0.39= $7.80
  • P/E 25*  $0.39= $9.75

Short-term Potential value based on 2009 fully taxed adjusted Implied EPS Guidance

  • P/E 10*  $0.91 = $9.10
  • P/E 15*  $0.91 = $13.65

These scenarios are not intended to be investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.


Monday, April 13, 2009
Comments & Business Outlook

Guidance Report:

Mr. Jimmy Wang, CEO of Worldwide Energy and Manufacturing, stated: "We are very pleased to announce the best year end result in our company's history. Our Solar Energy division is performing beyond expectations and with our new solar factory and new solar contracts, we expect triple-digit growth both in revenue and net income in 2009.

"Already we have $52 million in backlog solar orders for 2009. Our new solar factory in Ningbo, China has the capacity to generate $225 million in revenue. Our gross margins and ultimately our net margins will increase substantially as we will manufacture all solar modules in our own factory. Our strong financial performance clearly demonstrates that the company has successfully made the transition into the renewable energy market as well as maintaining strength in its other contract manufacturing business. We have successful laid the foundation in 2008 to provide explosive growth in 2009."

Full Year Fiscal 2009 Guidance Ending December

  2009 Guidance 2008 Reported Period Change
GAAP Revenue $100 million $45.9 Million 118%
GAAP Net Income $5 million $1.46 million 242%
*GAAP EPS $ 1.50 $ 0.44 241%

*The Company did not provide 2009 EPS guidance.  The GeoTeam® calculated an implied 2009 EPS guidance number using year end outstanding shares of 3,334,473 million.

Source: Marketwire (April 13, 2009)


Tuesday, March 10, 2009
GeoBargain Notes

Friday, May 23, 2008
Research
WEMU Reports Increased First Quarter 2008 Financial Results.

The company has not yet released a formal press release, but has reported its 10 Q with the SEC. The GeoTeam was especially surprised as to the magnitude of the profits in the quarter, given that this is typically the firm’s weakest quarter.

In our previous note we mentioned that, as of the 2007 year end 10K, the company did not meet some of the GeoTeam Preferred Minimum Requirements:

"At first glance, 2007 WEMU financials do not meet many of the GeoTeam Preferred Requirements including:

* Earnings per share (EPS) growth rate should generally be a minimum of 30% and increasing year over year.

* Company has the ability to grow revenues by at least 10% year over year.

* Return on Equity (ROE) is at least 15% "


After adjusting the quarterly numbers, for one time non-cash charges and a standard tax rate, the company appears on track to significantly exceed these Preferred Minimum Requirements.

Margins were down a bit due to some outsourcing in the new solar arena. However, the company is exploring the purchase of a solar manufacturing arm in China, thus relying less on outsourcing, which could lead to higher margins.

The GeoTeam will have more information upon the issuance of a WEMU press release.

Wednesday, May 21, 2008
Financials
2008 First Quarter Notes:

* Revenues increased 93.9% to $5,404,083

*
Pre-Tax income rose 87% to $218,923 from $117,311

* Reported Net Income increased 121% to $218,923 from $117,311

* Reported EPS was up 120% to $0.11

* Taxes were negligible in both periods.

The GeoTeam made the following adjustments to reported financials:

* Added back $110,00 of one time non-cash charges for 2008 or EPS of $0.05

* Applied a standard tax rate.

These adjustments yield:

* Net Income up 180% to $210,510 compared to $75,079

* EPS of $0.10 compared to $0.04

* Annualized Return on Equity of 19.7%

Tuesday, May 20, 2008
Research
At first glance, 2007 WEMU financials do not meet many of the GeoTeam Preferred Requirements including:

* Earnings per share (EPS) growth rate should generally be a minimum of 30% and increasing year over year.

* Company has the ability to grow revenues by at least 10% year over year.

* Return on Equity (ROE) is at least 15%

* The company is seeking profit margin improvements to ultimately achieve minimum pre-tax operating margins of 8%.

However, upon further inspection and by observing published financial estimates ( EPS growth of 130% over next two years) it appears that WEMU will meet the above-mentioned GeoTeam Minimum Requirements. Over the past several years the company has been trying to position itself for better growth opportunities and profitability:


* "Since 2005, we have begun the transition to becoming a direct contract manufacturer, operating several of our own factories" This is intended to improve margins.

*
The company has announced its intention to enter the solar market in its first quarter, giving it an exciting new source of growth opportunity.

* "We plan to continue our expansion efforts through further acquisitions in 2008. We are presently evaluating a power supply factory in Shanghai, China. Additionally,
the company plans on entering the solar module industry in the first quarter of 2008."

( Source 10K 2007 )

The company comments in their Fourth Quarter press release may offer further encouragement:

* Though we did not increase earnings year-over-year, revenue was up 6.3% and we reached several important milestones, including the investment in our solar division and our recent solar module order valued at $4.8 million. I expect to generate record revenue and earnings in 2008 with substantial growth in our contract manufacturing business and our solar division."

( Source: Press, April 16, 2008 )

It appears that the stock has not garnered much attention, even after they have exceed published earnings estimates. This may be due to:

* The possibility that many investors aren't yet aware of the solar plans of the company.

* The weak 2007 numbers

* Investors waiting to see the execution of WEMU's new strategy.

* The stocks low share float.

WEMU appears to have taken on a new vision. It will be interesting to follow their progress and the execution of their plan. We hope that the 2008 First Quarter results will shed some further insight into the execution of their strategy.

We are also curious about their financing needs to fund future growth.

Due to the company's new direction, the GeoTeam feels that it may be more logical for investors to use future EPS growth rather than past EPS data as a gauge for potential valuation scenarios.

The GEO team holds shares in WEMU. Sticking with the GEO discipline, we may have good to cancel sell limits. We may change these limits or liquidate our position if new developments arise. We may also change these limits or liquidate our position to meet firm capital needs or as our market outlook changes.

Monday, May 19, 2008
Financials
December Year 2007 Financial Notes:

*
Revenue increased 6.3% to $12.136 million from $11.409 million.

*
Net income decreased to $575,674 from $969,429.

* EPS was $0.28 per share compared to $0.48 per share.

*
Operating Margins were 5.7% compared to 10.5%.

*
Outstanding shares: 2,047,363

* The company had tax benefits in 2007 and 2008.

Adjusting financials for a standard tax rate yields:

* Net income of $326,366 compared to $595,514

*
EPS of $0.16 compared to $0.29

* Return On Equity of 8.5%

Comments & Business Outlook
Though we did not increase earnings year-over-year, revenue was up 6.3% and we reached several important milestones, including the investment in our solar division and our recent solar module order valued at $4.8 million. I expect to generate record revenue and earnings in 2008 with substantial growth in our contract manufacturing business and our solar division."

( Source: Press, April 16, 2008 )