Member Alert: Stay tuned for our next bullish micro cap play to be released later this morning.

Call to Action: Omagine (OMAG) – Will look to possibly establish short position.

Looking to possibly short OMAG ($2.40) – Real Estate development pump and dump in the making  that needs to raise over $70 million and has ties to YA Global (Ya Global has had relationships with  LTUS and CREG , two U.S. listed Chinese companies where we have questioned legitimacy of operations). Stock has pumped after the company released news that it will receive $70 million as part of a multi billion dollar real estate project in OMAN if certain conditions are met over the next 6 to 12 months.

Here are the other stories that the GeoTeam is following today… (Please see full disclosures at bottom)

  • ChinaHybrids
    • CGA ($2.04; marked down to $1.95 pre market) – Announced that they will be hosting an investor day in Xi’an, China on October 15th and Beijing on October 17th to refute our report. We question why they’re not simply appointing an independent organization to audit the company’s product/business.  This reminds us of a similar tactic used by CBEH.
    • CTC ($1.40; marked up to $1.80 pre market) – Signed strategic cooperation with leading online real estate platform SFUN.
    • SIMO ($26.09; marked up to $28.00 pre market) – Announced preliminary Q3 2014 revenue and earnings guidance.  “sequential revenue growth for the third quarter is expected to be in the 23 to 25% range, above the Company’s original guidance range of 15 to 20% sequential growth issued on July 29, 2014. Gross margin (non-GAAP) is expected to be in the 52 to 53% range, above the Company’s original guidance range of 50 to 52%.”
    • VIMC ($10.93; marked down to $9.89) – Short thesis on VIMC from Seeking Alpha: “Vimicro’s Government Connections Don’t Make Up For An Inferior Camera.”
  • U.S. News
    • EFOI ($5.91; marked up to $7.15 pre market) – Announced order from U.S. Navy of $7.7 million expected to be delivered through first half of 2015.  (Q2 2014 sales were $6.7 million).
    • SRCO ($0.27) – Reported its mobile application products experienced a 400% increase in new mobile app sales the month of September compared to September last year.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain ISDR ($8.70) – Announced agreement to acquire Accesswire. The acquisition will add hundreds of new customer to the ISDR platform.
    • GeoSpecial VSR ($3.04) – Awarded two new task orders valued at $18.3 million.

For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.

Disclosure: Long ISDR, SRCO; Short CGA  ; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

China Green Agriculture (NYSE:CGA) ($2.04) –  Announced that they will be hosting an investor day in Xi’an, China on October 15th and Beijing on October 17th to refute our report. We question why they’re not simply appointing an independent organization to audit the company’s product/business.  This reminds us of a similar tactic used by CBEH which Alfred Little exposed.

Ifm Investments(NYSE:CTC) ($1.40; marked up to $1.80 pre market) — a leading comprehensive real estate services provider and the exclusive franchisor for the CENTURY 21® brand in China, announced:

it has entered into strategic cooperation agreements with Soufun Holdings (NYSE:SFUN) ($10.24) the leading real estate Internet platform in China.

Pursuant to the strategic cooperation agreements: 1) Century 21 China and SouFun will form a mutually preferred strategic partnership across their business lines, including advertising, e-commerce, listings services, internet and real estate financing, and secondary and primary brokerage services; 2) Century 21 China Real Estate will issue new shares to SouFun in a private placement for 20% of the Company’s outstanding share capital immediately after the completion of the private placement; 3) Century 21 China will issue a convertible bond to SouFun to support the Company’s operational needs and SouFun will also grant a loan to the Company’s founders via IFM Overseas Partners L.P. to refinance an earlier loan borrowed from GL Asia Mauritius II Cayman Ltd.. The aggregate consideration from SouFun for this strategic cooperation amounts to approximately US$51 million. Upon the closing of the transaction, SouFun will be the second-largest shareholder of the Company on a fully diluted basis. The closing of the transaction is subject to the customary closing conditions for transactions of this type.

“These agreements with China’s preeminent online real estate player are a major step forward for Century 21 China Real Estate as we look to shape our business for the future,” said Donald Zhang, chairman and chief executive officer of Century 21 China Real Estate. “By combining our unrivaled on-the-ground knowledge with SouFun’s well-established platform, we will be uniquely positioned to offer today’s buyers and sellers a truly integrated O2O experience. SouFun’s online strength will facilitate the upgrading of our franchise model, equipping our agents with better tools and systems to provide more integrated services to our customers, and allowing us to further expand the Century 21 China Real Estate franchise network.”

Silicon Motion Tech (NASDAQ:SIMO) ($26.09) –  a fabless semiconductor company, designs, develops, and markets semiconductor solutions for mobile storage and mobile communications markets.   Announced preliminary Q3 2014 revenue and earnings guidance.

“sequential revenue growth for the third quarter is expected to be in the 23 to 25% range, above the Company’s original guidance range of 15 to 20% sequential growth issued on July 29, 2014. Gross margin (non-GAAP) is expected to be in the 52 to 53% range, above the Company’s original guidance range of 50 to 52%.”

On the U.S. Front…

Energy Focus (OOTC:EFOI) ($5.91) – designs, develops, manufactures, markets, and installs energy-efficient lighting systems and solutions in the United States and internationally.  Announced that the Company has received a $7.9 million order for the United States Navy–its second large order for the Navy in less than 30 days. This order is expected to be delivered throughout the first half of 2015, and is now the single largest in the Company’s history, topping the $7.7 million order received in September.

Sparta Comm Services (OOTC:SRCO) ($0.27) – The company, through its subsidiary, Specialty Reports, Inc., offers a one-stop online source for various types of vehicle history reports, including motorcycles, automobiles, and RVs.   Reported its mobile application products experienced a 400% increase in new mobile app sales the month of September compared to September last year.

GeoBargain/Specials…

Issuer Direct Corp (AMEX:ISDR) ($8.70) – GeoBargain ISDR helps companies produce and distribute their financial and business communications both online and in print.   ISDR announced agreement to acquire Accesswire.

The acquisition, when completed, will significantly bolster the comprehensive disclosure and communications platform for Issuer Direct. This will provide its growing base of customers a single-sourced, consolidated disclosure and communication offering for disseminating news to regulators, shareholders, potential investors, and now to the media and news portals via its own newswire. Accesswire services will become an integral part of the Company’s Cloud-based platform for disclosure and communications. The purchase price of $1.84 million consist of $1.70 million in cash that will be paid from Issuer Direct’s cash reserves and common stock valued at $140,000.

Quotes from management:

“When completed this acquisition would round out our already comprehensive offering, adding to the reach of our disclosure management platform and increasing the value for our customers,” said Brian Balbirnie, Chief Executive Officer of Issuer Direct. “Having a newswire network within our ecosystem is fundamental to our overall strategy. Not only do we plan to continue to build upon Accesswire’s existing network, we expect to leverage this powerful news dissemination platform by distributing news through our current PrecisionIR platforms and social media assets. Post close, this acquisition will add hundreds of new clients to the Issuer Direct platform.”

Versar (AMEX:VSR) ($3.04) – GeoSpecial VSR is a publicly held international professional services firm supporting government and industry in national defense/homeland defense programs, environmental health and safety and infrastructure revitalization. VSR today was awared two new task orders valued at $18.3 million by U.S. Army Corps.

Quotes from management:

“Versar has been proud to participate in the United States Department of Defense’s reconstruction and capacity development efforts in Afghanistan since 2006. The continuation and growth of this contract is one of the key mechanisms USACE is using to provide long term and cost effective engineering oversight for active construction projects.”

For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.

Sincerely,

The GeoTeam