Usa Synthetic Fuel Corp (OOTC:USFC) shares are starting to pump.  We first added USFC to our speculative screen on 9/27/2012 at $0.39.  Here is our original note:

The company describes itself as a clean energy company, stating that its leading Btu Converters are in development and/or construction and are designed to produce 100,000 BOE (barrels of oil equivalent) per day of low cost synthetic fuel.  Shares have moved sharply higher fueled by several announcements; First, the company announced that it has received $35 million in debt financing from Third Eye Capital, a leading special situations investor based in Toronto, Canada with established expertise in resource lending and other complex assets. Second, it claims to have received $11 million in equity funding. Third, the company claims that it used its recent capital inflow to buy a significant energy asset consisting of approximately 50 million tons of Illinois Basin coal located in Indiana. Fourth, the company claims that the seller of this asset was willing to accept half the purchase price ($25 million) in stock. Finally, the company claims that the purchased energy asset has an estimated energy equivalent of 200 million barrels of oil, according to the Company and represents a 50 year fuel supply for its subsidiary, Lima Energy Company (“Lima Energy”). It appears the company just issued its first press release since going public in a reverse merger in December 2009. Company is attempting to raise $90 million.

We are coding Mfri (NASDAQ:MFRI) ($9.70) as a GeoBargain after having conducted further due diligence and also having interviewed management.  We believe EPS will grow significantly over the next three quarters.  Forecasting numbers beyond this point is difficult, but with the divesture of a low growth division and expansion of its piping and filtration product divisions into the Middle East, the company has significantly improved its growth profile.  Furthermore, backlog is skyrocketing which could bode well for growth into next year.

Investors should note that since the company is dealing with large projects, the timing of orders could lead to an occasional disappointing quarter.  We currently believe that the stock is worth at least $11.50 in the short-term but we believe that significant upside to this price target exists due to the rate at which the company has been increasing its backlog.

The company regained profitability in the first quarter of 2013, a trend which should continue throughout the year.  We look forward to the second and third quarters which are seasonally the strongest quarters for the company.  We first mentioned MFRI in our 6/6/13 email when the stock was trading at $8.55.  Our original note highlighted the company’s strong first quarter 2013 results and can be found our 52-Week High Screen.

We are coding Mfri (NASDAQ:MFRI) as a GeoBargain at  $9.70.  MFRI annoucned over $30 million in new orders in its second quarter by its piping systems segement.  

GeoBargain on the Radar Greystone Logistics (OOTC:GLGI) ($0.41) filed an SC 13E-3 "Going Private Transaction" for $0.50 per share.  We first added GLGI to our 52-Week High Screen on 7/17/2012 when the stock was trading at $0.17. The buyout of $0.50 would translate into gains of 194%.  However, we believe that the buyout price undervalues the company and we are looking at options to prevent management from making moves that ignore minority shareholder interest.

OBOSS is neutral.

This could start a nice short squeeze. Love what this guy did .... went to China and interviewed employees and ex-employees without company consent. Says Part 2 is coming. I'm in at $8.20 after reading the article .....

http://seekingalpha.com/article/1507942-nq-mobile-china-trip-report-part-1?source=yahoo

After performing further due diligence on Polydex Pharmaceuticals (OOTC:POLXF), we believe the positive trend set in the first quarter of 2013 can continue.  We believe 2013 will be a year for margin expansion with 2014 being a year of revenue growth.

Champions Oncology (OOTC:CSBR) ($0.68) - We don’t really play in the biotech field that much, but when we come across a company that has been consistently growing revenue and/or is profitable, we dig further.  We particularly like companies that offer services to other biotech firms CSBR is one of these instances.  The company is engaged in the development of advanced technology solutions to personalize the development and use of oncology drugs, and uses this technology, in conjunction with related services, to offer solutions for two customer groups:

A: Its POS business offers physicians and patients information to help guide the development of personalized treatment plans by utilizing its technology platform to empirically test the response of a patient’s tumor to multiple oncology drugs or drug combinations.  In addition to its core product, the company also offers related personalized oncology services to customers, including personalized tumor panels designed to provide access to world-renowned oncologists with expertise in particular tumor types who can offer useful insight into possible treatments.

B: Its TOS business utilizes a technology platform to assist pharmaceutical and biotechnology companies with the drug development process.  The company provides studies that predict the efficacy of experimental oncology drugs or approved drugs as stand-alone therapies or in combination with other drugs. The studies can be used to determine which types of cancer, if any, are inhibited by, differentially sensitive, or resistant to a drug or drug combination.

In a nutshell, the company helps biotech firms deliver their products quicker to the market and helps cancer patients determine what therapies are best for them.  There is no doubt that cancer is a growing industry.  CSBR is clearly benefiting from this trend as show by its 2008-2013 revenues:

• 2008 – $1.4 million
• 2009 – $3.71 million
• 2010 – $4.893 million
• 2011 – $6.882 million
• 2012 – $7.149 million
• 2013 – $8.3 million

Even though the company has grown top-line revenue, it is still losing money and quarterly sales have been lumpy.  CSBR has dilutive securities of:

• 3 million warrants at an average exercise price $0.70.

We will look to interview management for more color on the company.

Avanir Pharmaceuticals (NASDAQ:AVNR) ($4.50) - Speaking of Biotech companies, we initiated a position in AVNR on Friday.  The company is bringing innovative medicines to patients with central nervous system disorders of high unmet medical need.  Shares recently received a bump from a company press release that announced that the FDA agreed to an expedited development pathway for one of its compounds.

The company has seen revenues consistently balloon from $2.9 million in 2010 to $41.3 million in 2012.  2013 and 2014 sales are expected to grow $75.9 million and $122.8 million, respectively.  Profitability is expected to be achieved by the third quarter 2013.

Hancock Fabric (OOTC:HKFI) ($0.95) is a specialty retailer that offers a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies, and sewing machines. Along with being one of the largest fabric retailers in the United States, its stores present a broad selection of fabrics and notions used in apparel sewing, home decorating and quilting projects.  The company used to be a high flier riding on the coattails of the housing boom that occurred in the late 90’s and early 2000’s.  From 1998-2003 HKFI was solidly profitable, reporting sales ranging between $380-$450 million.  Sales fell considerably in 2004, as the company only recorded a slight profit, before ultimately diving below $300 million from 2005-2008, and four straight years of revenue losses.  In hindsight, one can see how this turn in profitability just as the housing market began to top out would foreshadow the ensuing burst of the housing bubble and overall decline in the stock market as a whole.

The company reached slight profitability in 2009 before recording losses yet again from 2010-2012, as sales finally stabilized between $250-$300 million.  However, HKFI did turn EBITDA positive in the third quarter 2012 and has remained so for three straight quarters.

We haven’t been able to attain any color on restructuring moves, however management did streamline some debt and sold off inventory.  Sales seem to have stabilized at current levels and the company has remained EBITDA positive, which are both signs that point toward future profitability.  We assume that HKFI will remain a beneficiary of continued improvement throughout the housing market.

OBOSS is neutral.

GeoBargain B- Scada (OOTC:MOBS) reported record second quarter 2013 revenues of $444,270 a 100% increase compared to prior year period and net income of $197,756 (EPS of $0.01) vs. a loss of $14,685 in prior year.  This is only the third time that the company has eclipsed revenues of $400,000.  However, we believe that this is the first time that revenues have exceeded $400,000 since the company's new Software as as Service (SaaS) offering has been operating at full throttle.  It is still too early to tell if the company has achieved a new quarterly level, but we are confident in the company's long term business plan and that it is gaining momentum.

OBOSS is neutral.

The markets have completely reset from the extreme overbought condition we saw in the middle of May.  What a difference a month can make when it comes to equity markets.

There is a balance of buying and selling.  Let's see if the bulls can regain the upper hand before the markets work their way into oversold territory.

We believe an information arbitrage opportunity exists with Gain Capital Holdings (NYSE:GCAP) and that GCAP’s stock price could soon more than double from its current prices.  Attentive investors have an opportunity to buy shares on the cheap, as more conservative investors wait for the official closing of an acquisition that will more than double the size of the company.  Downside risk seems limited because of the fact that a competitor offered to buy the company for around $5.35 before GCAP announced that it had entered into an agreement to consummate a transformative acquisition.  The board promptly rejected this offer. We have coded GCAP as our next GeoBargain.

Please see our entire article here. (password GEOTEAM)

On June 10, 2013 Polydex Pharmaceuticals (OOTC:POLXF) ($0.46) reported strong first quarter fiscal 2014 results, with revenues of $1.4 million vs. $1.2 and EPS of $0.08 vs. a loss of $0.04 in the prior year.  The first quarter 2014 EPS of $0.08 marks the highest quarterly EPS total in history.  Prior to this quarter the highest EPS quarter was $0.04.  While revenue growth has not been extremely strong, we are encouraged by comments from the company.

"Demand for product is steady and our order book is full for many months to come" said George Usher, President and CEO. "We're also experiencing an increase in the number of customer audits of our production facilities, an important step in providing assurances to new and existing customers that we have the ability to consistently produce high quality products ".

POLXF trades on the Pink Sheets, and as with many Pink Sheet stocks, financial information is hard to find.  We will continue our due diligence in this name and provide updates as necessary.

We are adding another Software as a Service (SAAS) company to our watch list. Jagged Peak (OTCCB:JGPK) ($0.51) has reported nine straight quarters of revenue growth.  During this period, revenue growth was below 20% only twice. We like what JGPK does.  Basically, the company offers a platform that allows companies to create, enhance, and market their pressence online.  The company’s software addresses order fulfillment, inventory, billing, logistics and marketing decisions.  The demand for the company’s services should only increase as other outfits continue to increase their own efforts to sell goods and services online.

JGPK also operates two warehouses in Florida and a network of 20 independently owned fulfillment warehouses throughout North America that enable its clients to provide faster delivery to their customers, while lowering overall delivery costs.

Jagged began making money in the 2nd quarter of 2012, albeit minimally.  The company is selling at an EV/Sales multiple 0f 0.3 and EV/EBITDA multiple of 7.5.  We will contact management to determine the revenue split between its software and warehouse fulfillment services.

OBOSS is neutral.  Caution is advised as OBOSS doesn't give us a lot of clues while it is within the neutral zone.  Normally we review SPY's 50 day moving average to see if the market is trending up or down and trade accordingly.  Take trades with the trend while keeping in mind where OBOSS and the market have come from recently.  If the market is in the middle of a snap back rally, it may be time to let profits ride while keeping a tight stop on winning trades.  If on the other hand, the markets are pulling back from overbought levels in an uptrend, it may be time to look for upwardly trending trades.  SPY's 50 day moving average is a good indicator of the overall trend, but it does lag during reversals off oversold and overbought levels.  When this happens, look at shorter time frames (5, 10, and 20 day moving averages) and look for higher highs and higher lows or lower highs and lower lows in price for an indication that the trend might be changing.  This will help you find the best trades in a neutral market.

GeoTeam shorts pump and dump Norstra Energy (OTCCB:NORX).  Here is our original research note from 3/25/2013.

NORX completed a reverse merger on March 12th 2013, and is now an oil and gas exploration company. We believe that it is possible that the company’s alleged involvement in the Bakken oil and gas region could elicit a pump campaign.  There is a big incentive for CEO, Mr. Landry, to issue positive developments regarding a well that the company owns.  "Mr. Landry will receive consulting fees of $5,000 per month and shall be issued 1,000,000 shares of our preferred stock, which will be convertible into 10,000,000 shares of our common stock upon achievement of production from a well owned by us in the state of Montana."

Edgewave (OOTC:EWVE) ($0.29) offers two Software as a Service (SAAS) products that deliver a broad range of solutions designed to protect organizations from current and emerging threats.  iPrism Web Security solutions protects networks from Internet-based threats and helps enforce corporate security and acceptable use policies by blocking access to recreational or non-business related websites.  iPrism Social Media Security, a new service that transcends traditional Web filtering by seamlessly monitoring and controlling user interactions with social media applications such as Facebook and Twitter.

The company de-registered its stock in late 2012.  Available SEC filings reveals that revenues had been stuck at around $18 million for several years, but it is possible that the new product offering may be viewed as a new growth channel.  We will track developments since the shares are trading at an Enterprise Value/Sales multiple of just 0.2.  If the company can begin to grow revenues we would presume that the EV/Sales multiple should expand.  Shares have risen from around $0.10 in April 2012 to its current price of $0.29.

Signature Group Holdings (OOTC:SGGH) ($0.80) emerged from chapter 11 on June 11, 2010.  Since then, management and the Board have worked to reposition the company by divesting non-core legacy assets, undertaking and successfully completing a major project to get the Company’s financial statements audited for the years subsequent to 2006, remediating delinquent SEC filings, settling or resolving a substantial number of legacy legal actions, and making select investments through Signature Special Situations.  The company expects to continue to reposition operations through additional acquisitions, as well as through organic growth of its existing operations.  It plans to focus on companies that are highly profitable and will be accretive to earnings immediately.

The company operates through two principal operating segments:

• Industrial Supply is one of the largest independent suppliers of circuit breakers in the U.S.
• Signature Special Situations selectively acquires sub-performing and non-performing commercial and industrial loans, leases, and mortgages, typically at a discount to unpaid principal balance (“UPB”). It  also originates secured debt financings to middle market companies for a variety of situations, including supporting another transaction such as an acquisition, recapitalization, or restructuring.

The company has lost money for the past three years but the story is worth watching due to its stated goals to grow the business. SGGH ended 2012 with revenues of $46.5 million, up from $19.5 in 2011.

Astronics (NASDAQ:ATRO) ($39.52) is a manufacturer of specialized lighting and electronics for the cockpit, cabin, and exteriors of military, commercial transport, and private business jet aircraft.  The stock had one of the best performances from 2000 to 2008 before shares pulled back during the recession.  Shares have been steadily recovering since 2010.

We will start tracking shares of the company due to a recently consummated acquisition that will broaden its product portfolio and add 25% to the company’s already strong revenue and EBITDA standing.  Prior to the acquisition, analysts had already expected ATRO to grow its 2013 and 2014 EPS by 36% and 24%, respectively.

OBOSS is neutral.

On September 5, 2012 we alerted premium members that we Federated National (NASDAQ:FNHC) to our new high screen.  We stated:

"This company operates in the property and casualty insurance industry, an industry we typically stay away from.  However, after reporting strong second quarter 2012 financial results on 8/9/2012, the stock has had a nice run and attained a new 52 week high of $5.93 on 9/5/2012.  Furthermore, property and causality insurers typically experience up-and-down cycles.  It appears as though the industry is in an up cycle.  For example, HCII is up over 50% after announcing strong first quarter 2012 results in May of 2012.  TCHC has made a conscious effort to focus on the bottom line by writing sustainable quality businesses, expanding geographically, and controlling expenses.  Also, a competitors business moves made a few years ago had initially impacted the industry negatively, but have now been worked through.  The company is also waiting on the approval to increase its premiums by 9%, which will help top and bottom line growth.  The company's book value is $7.89 per share.  We will interview the company to learn more."

Shares now stand at $9.70 after the company reported a strong finish to 2012 accompanied by a 50% increase in its dividend, and reported exceptionally strong 2013 first quarter results which exhibited its strongest quarterly revenue growth over the past three years.  Business is also benefiting from an increase in the writing of higher quality policies, a reputation that is increasing the flow of new business from insurance agents.

Here are some comments from management:

• From the 2012 year end release...

“Our annual results reflect focused execution on these four pillars and have poised us to accelerate this trajectory in 2013 and beyond...”

• From the 2013 first quarter release...

"Results in the first quarter reflect our company's focused execution on the four key pillars discussed with our year-end results. Our approach to growing the top line has revolved around disciplined underwriting and sound risk management techniques that will allow us to grow our book of business significantly throughout 2013. We are pleased with the first quarter's results and the underlying key performance metrics indicate sustained quality growth in future quarters."

First quarter 2013 conference call comments indicate that business prospects are markedly improving and that the company expects to continue to operate at a high level throughout the year.  Comments also indicate that FNHC is about to embark on a new leg of growth.  Investors should be aware that the company may seek additional capital to allow it to write more business. We believe that such a move would be accretive to EPS.  At its current price of $9.70 shares are trading at 1.1 times book, which is below some of its comps that trade near 2 times book.

We intend to go long FNHC.

China Biologic Products (NASDAQ:CBPO) ($21.35) waived application of preferred shares rights agreement.

• On May 21, 2013, Shanghai RAAS Blood Products Co., Ltd. ("RAAS"), a public company listed on the Shenzhen Stock Exchange and a direct competitor of the Company in China, entered into a stock purchase agreement with Ms. Siu Ling Chan ("Ms. Chan"), one of the stockholders of the Company, and her spouse, Mr. Tung Lam (the "RAAS SPA", and the share acquisition transaction contemplated thereby, the "Proposed RAAS Transaction").
• On June 7, 2013, RAAS issued a public announcement in Chinese, stating that the shareholders of RAAS who attended its special shareholders meeting held on the same day have unanimously voted against the Proposed RAAS Transaction and RAAS has determined to terminate the Proposed RAAS Transaction.
• Mr. David (Xiaoying) Gao, Chairman and Chief Executive Officer of China Biologic, commented, "We are pleased to learn the termination of the RAAS SPA. Thanks to our board of directors with the majority members being independent directors, prompt and decisive actions were taken in the best interest of our company and shareholders as a whole to prevent a direct competitor from disrupting our strategic development through an unfriendly acquisition of a significant minority stake in our company.”

We speculate that investors were concerned that if the RAAS transaction were to consummate it could complicate a going private transaction involving Wharburg Pincus, a multi-billion dollar private equity firm that has taken a 67% stake in CBPO's shares.  The termination of RAAS SPA agreement may accelerate CBPO's take over/going private process.  The stock has been down sharply in recent trading.

Mojo Organics (OOTC:MOJO) ($0.90) completed a reverse merger on May 13, 2011 and is currently engaged in the development of beverage products and vitamin supplements, such as energy drinks, sports drinks, wellness beverages, ready to drink (RTD) iced teas, and vitamin enhanced kids drinks.  Pursuant to the License Agreement, Chiquita granted to the company an exclusive license to use Chiquita’s marks in the manufacture, sale, promotion, marketing, advertising, and distribution of certain fruit juice products in select containers in Connecticut, New Jersey, and New York and a non-exclusive license for the other states.  It now looks as if the company is ready to tell its story.

As far as we can tell, the company issued its first press release in March 2013 when it announced that it has signed a distribution agreement with Eastern Distributors, Inc. to distribute MOJO's CHIQUITA TROPICALS™ line of premium fruit juices.  Shortly thereafter, the company announced another distribution agreement with Wholesome Choice.  Eastern Distributors and Wholesome Choice are large well-known, established companies in the beverage industry.  The company’s association with well-respected entities could make this stock an attractive pump and dump selection.  The company has yet to generate any revenues.

OBOSS is neutral. 

Caution is advised as OBOSS doesn't give us a lot of clues while it is within the neutral zone.  Normally we review SPY's 50 day moving average to see if the market is trending up or down and trade accordingly.  Take trades with the trend while keeping in mind where OBOSS and the market have come from recently.  If the market is in the middle of a snap back rally, it may be time to let profits ride while keeping a tight stop on winning trades.  If on the other hand, the markets are pulling back from overbought levels in an uptrend, it may be time to look for upwardly trending trades.  SPY's 50 day moving average is a good indicator of the overall trend, but it does lag during reversals off oversold and overbought levels.  When this happens, look at shorter time frames (5, 10, and 20 day moving averages) and look for higher highs and higher lows or lower highs and lower lows in price for an indication that the trend might be changing.  This will help you find the best trades in a neutral market.

Innocap (OTCCB:INNO) ($0.35) just released its first press release since completing its reverse merger in May 2011.  The company plan consists of finding and assisting in the salvage of sunken ships.  A good deal of management’s geographic focus appears to be in Asia.  We will begin tracking the story for promotional campaigns because a June 6, 2013 press release mentioned that the company has engaged an investor relations firm to promote its story.  Part of the pump appeal may arise from the claims made by the company that one of its directors, Paul Tidwell, is a high profile individual stating,  "Tidwell's adventures have been documented by some of the most trusted authorities, such as National Geographic Magazine, NBC television and the Guinness Book of World Records (Silver Edition)."

We will begin tracking Mfri (NASDAQ:MFRI) ($8.22), a company that markets specialty piping systems to the oil and gas industry, manufactures filtration products, and provides heating and air conditioning products for large buildings.  Over the last two years the company has implemented strategic initiatives to jumpstart growth that has previously escaped the company for several years.  Part of this initiative has resulted in the company selling the assets of its heating and air conditioning business.

2012 year-end backlog surged 78% to $148 million, and this does not include an additional $27 million in orders received since the beginning of the year.  The company believes 2013 will be a year of significant growth that will include reporting profitability for the first time in two years.  We plan to interview management in order to attain more clarity as to the level of profitability that MFRI can reach in the near  term.