Please see our CGA Follow up to our original report, calling into question the existence of franchised retail stores claimed by the company.
Here are the other stories that the GeoTeam is following today… (Please see full disclosures at bottom)
- Hot Sector News
- OSUR ($8.34; marked up pre market to $9.20) – Target raised at Canaccord Genuity to $12.00 on a report that the company is in talks with government to develop Ebola test. News that OSUR was approached by the U.S. government to develop an Ebola test was first reported through the internet on 10/14/2014 but not through a major newswire. This morning, Reuters has picked up this development.
- IBIO ($1.39, marked up to $2.04) — IBIO issues a press release attempting to clarify its role in fighting Ebola. Yet, it is still unclear to our team if Caliber is using IBIO technology in its Ebola drug development initiatives.
- ChinaHybrid News not released in U.S.
- GOMO ($7.46) – According to TechWeb, the company is laying off lots of employees in the 3G portal business sector, and trying to focus more on the Go series mobile application business sector.
- ChinaHybrids
- GeoBargains/GeoBargains on the Radar
- GeoBargain REPR ($0.35) – Reported Q2 2014 results.
- REPR reported $2.5 million and $5.1 million for the three and six month periods ended August 31, 2014, 24.7% and 32.4% more than the comparable periods in 2013.
- The company reported net income of $203,000 and $361,000 for the three and six months ended August 31, 2014, more than double the profits recorded in the comparable periods in fiscal 2014.
- The gross profit margin increased this quarter to 65.3% compared with 59.8% for the same quarter in 2013.
- One noteworthy item in REPR’s balance sheet is that inventory increased from around $1 million to $1.4 million during the three months ended August 31 and up from $0.8 million at the end of Q4 2013.
- We maintain our optimistic view and anticipate continued strong growth for REPR’s flagship products FREEDOM60 and related needle sets.
- GeoBargain REPR ($0.35) – Reported Q2 2014 results.
For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.
Disclosure: Long REPR ; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)
Summary of general highlights:
On the Asian Front…
Vimicro Intl (NASDAQ:VIMC) ($7.72) – a leading video surveillance technology and solution provider in China announced:
its joint venture, Shanxi Zhongtianxin Science and Technology Co. Ltd. (“Zhongtianxin”), has won two competitive bids to provide SVAC-compliant video surveillance cameras and system to Taiyuan Municipal Government in Shanxi Province, with the total estimated contract value of RMB244 million, or USD39.80 million approximately.
Zhongtianxin is a joint venture in which Vimicro holds a 51% stake, with the remaining 49% owned by Shanxi Guoxin Investment Co., a Shanxi provincial government-owned investment company. One competitive bid is for Taiyuan’s Phase II Public Security Video Surveillance Information System with the contract value ofRMB 220 million, which Vimicro has already started the project-related works. This project is expected to be completed by early 2015. The other one bid is for twenty-one road video surveillance of traffic control and monitoring with the contract value of RMB 24 million.
“We are very pleased to have won these two competitive bids to supply our SVAC-compliant video surveillance products and system to Phase II Tianwang in Taiyuan City and traffic control and monitoring, following our successful implementation of Phase I,” commented Dr. John Deng, Vimicro’s Chairman and CEO, “Phase II implementation of Tianwang will further enhance local government’s management of public safety and security, which will be a role model for SVAC national standard adoption for other cities in Shanxi Province and the country at large. As the only proven provider of SVAC technology and solutions in the marketplace, Vimicro will continue to leverage its first-mover advantages to capitalize on the megatrend of SVAC national standard adoption by the government, to further establish itself as a leading player in China’s video surveillance market.”
China Automotive Systems (NASDAQ:CAAS) ($9.01) – a leading power steering components and systems supplier in China, has increased its presence in the North American market through a new multi-year agreement:
to supply Fiat Chrysler Automobiles N.V.’s North American subsidiary, Chrysler Group LLC (“Fiat Chrysler”), steering gears for the 2015 RAM® 4500 and 5500 Chassis Cab trucks.
Mr. Hanlin Chen, Chairman of China Automotive Systems, commented,
“By supplying our steering gears to the RAM 4500 and 5500 Chassis Cab models in the North American market, we have further demonstrated the global quality, strength, durability and performance of our steering products. CAAS won the 2013 Supplier of the Year Metallic award from Chrysler, recognizing our contribution to their success. Our expanding relationship with Fiat Chrysler acknowledges the value of our products to our customers. We look forward to further increasing our presence in the global automotive markets.”
On the U.S. Front…
GeoBargain/Specials…
Repro-Med Systems (OOTC:REPR) ($0.27) – GeoBargain on the radar REPR engages in the design, manufacture, and marketing of proprietary medical devices primarily for emergency medical applications and ambulatory infusion therapy worldwide. Reported Q2 2014 results.
- REPR reported $2.5 million and $5.1 million for the three and six month periods ended August 31, 2014, 24.7% and 32.4% more than the comparable periods in 2013.
- The company reported net income of $203,000 and $361,000 for the three and six months ended August 31, 2014, more than double the profits recorded in the comparable periods in fiscal 2014.
The steady growth in revenue is being driven by sales of the FREEDOM60® Syringe Infusion System and RMS High-Floâ„¢ Subcutaneous Safety Needle Sets in both domestic and international markets. The following chart reflects the steady growth of revenues by quarter:
As revenues have grown REPR is taking more to the bottom line. The company reported net income of $203,000 and $361,000 for the three and six months ended August 31, 2014, more than double the profits recorded in the comparable periods in fiscal 2014. As revenues continue to increase we expect profits to follow at an increasing rate as incremental revenues drive proportionally more profit because a greater share of gross profits makes it to the bottom line.
One noteworthy item in REPR’s balance sheet is that inventory increased from around $1 million to $1.4 million during the three months ended August 31. We have to assume that is in anticipation of increased sales. Supporting this view is that during the last six months the company invested heavily in facility upgrades including a second cleanroom, new production equipment and patent protection for products in development.
We maintain our optimistic view and anticipate continued strong growth for REPR’s flagship products FREEDOM60 and related needle sets. The ongoing shift to more homecare will provide a strong tailwind for REPR as management is focused on and has in fact bet the company on that market. We believe management has rightly anticipated the inevitable shift to more in home care and self-administered medical solutions putting REPR’s products in the right place at the right time.
For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.
Sincerely,
The GeoTeam