Calls to Action:

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

General Highlights:

  • ChinaHybrid
    • ZPIN, a leading job search platform in China began trading today, opening at $14.51.
    • We are starting to track speculative playGPIW due to recent strong Q2 2014  results and bullish management commentary
    • LAS to open fifth FAW-VW dealership, first in Jiangsu Province
  • U.S. News
    • MAG 13D activity is showing increase stake by Fundamental Global Partners
    • DOLNQis set to  emerge from bankruptcy this week. Because of the success we have had in bringing  Chapter 11 bankruptcy plays to our members, we are taking a closer look at the story.  We expect a symbol change to occur any day now.
  • Tier 1
    • PFHOCEO is using sharp pullback in stock as opportunity to nibble at shares in open market at $53.00.
  • Pump and Dumps
    • After falling more than 80% due to multiple  red flags raised by the GeoTeam, PGFY continues to try and raise funds from investors.
    • LIVE issued a press release stating 250% increase in traffic in site visits off recent ad campaign.
  • Marijuana Hype
    • HDRE symbol change to MJLB, company initiates  press release flow.

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

Disclosure: Long PFHO, Short LAS Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

Grand Perfecta Inc (OOTC:GPIW) ($0.60) GPIW through its subsidiary, provides quality horse racing information to its users, with insights from personnel such as jockeys, trainers and reporters that know the horse racing industry.  Reasons for tracking:

  • The company owns and operates ten websites that are used to publish racing information to its subscribers.
  • The Company’s revenue primarily consists of sales of comprehensive and informative horse racing literature focusing on all aspects of the horseracing industry in Japan.
  • Recently announced its expansion into the on-line horse race wagering market. Recently hired new manager to focus on growth in Hong Kong.
  • Stock has increased from $0.50 to high of $0.98 in the last four months on very light volume before retreating to current levels.  (stock has large bid/ask spread)

Recent financials:

Q2 2014 results

  • Revenues of $6.6 million vs $5.4 million in prior year quarter
  • EPS of 0.06 vs (0.01)

Six months ended January 31 2014 results:

  • Revenues of $11.9 million vs $10.1 million
  • EPS of $0.11 vs ($0.02)

Bullish commentary from management:

“We are encouraged with the progress that we have made to date and look forward to expanding our portfolio of services to our valuable client base. Our subscribers will soon be able to go to our web-site to access horseracing updates, follow their horses, place their wagers or pursue other services that we will offer. These recent actions allow Grand Perfecta to expand the menu of services we offer to our subscribers while attracting new clients. This is a solid plan to grow the Company due to our ability to mitigate risk and expenses in this expansion by strategically leveraging our established client base and expertise, which ultimately benefits our shareholders. ”

Lentuo Intl (NYSE:LAS) ($3.00) – LAS is one of the largest non-state-owned automobile retailers in China.  LAS  announced plans to open fifth FAW-VW dealership, first in Jiangsu Province.

China IPO’s…

Zhaopin Limited (NYSE:ZPIN) – ZPIN announced its initial public offering of 5,610,000 American depositary shares at US$13.50 per ADS; they began trading on the New York Stock Exchange, opening at $14.51 in early the morning and traded as high as $16.20.

On the U.S. Front…

Magnetek (NASDAQ:MAG)($22.35) — MAG provides digital power control systems to control motion and power primarily in material handling, elevator, and mining applications.  In our 6/5/2014 email we stated:

“We closed our position in MAG to move onto more timely opportunities.  We believe the stock is still an attractive takeover play.”

13D activity from 6/9/0214 shows an increase in stake by Fundamental Global Partners to 6.04% from a previously  reported 5% stake on 2/28/2014.

The Dolan Company (OOTC:DOLNQ) ($0.06) – DOLNQ is a leading provider of professional services and business information to the legal, financial, and real estate sectors.  DOLNQ is set to  emerge  from bankruptcy this week. Because of the success we have had in bringing Chapter 11 bankruptcy plays to our members, we are taking a closer look at the story.  We expect a symbol change to occur any day now.  For full details on the reorganization,go here.

Tier One Pinks…

Pacific Health Care (OOTC:PFHO) ($59.00) – GeoBargain on the Radar  and  Tier  One Pink PFHO engages in managing and administering health care organizations (HCOs) and managed provider networks in the state of California.

CEO Tom Kubota is using sharp pullback in stock as opportunity to nibble at   shares in open market at $53.00.   While the purchase was for only 100 shares, PFHO stock is extremely illiquid and hard to buy.  We view the purchase by the CEO as a vote of confidence, and he now owns 59% of the company.   Mr. Kubota has history of picking up shares in the open market since the stock was trading at around $3.00.  His last  purchase prior to yesterday was on 4/28/2014 when he purchased 400 shares at $48.00.

Pump and Dumps…

Pingify Intl (OTCCB:PGFY) ($0.13) –  PGFY’s goal is to provide a simple notification tool that puts you in control of what you receive.  In our 6/5/2014 email we mentioned we closed out our short in PGFY, locking in over 70% gains.

In our 5/6/2013 email we mentioned an aggressive pump campaign had begun on PGFY and that we established a short position.  On 5/8/2014 we published a follow up to our report due to the slew of press releases the company issued.  On 5/14/2014 shares of PGFY were halted by the SEC.  On 5/29/2014 shares reopened plummeting over 60%.

Today, PGFY issued an  update to shareholders on recent events and states that they continue to seek investment from private sources and/or the sale of the technology to an interested buyer at the appropriate price.

Livedeal (NASDAQ:LIVE) ($3.49) – LIVE delivers local customer acquisition services for small and medium-sized businesses.  LIVE issued a press release stating 250% increase in traffic in site visits off recent ad campaign.  In our 1/31/2014 email we mentioned we were tracking LIVE as possible pump and dump as the stock ran from $3 level to over $23 per share in about a months time.  Some highlights from our original note:

  • The company has history of losing money and not growing its revenues.
  • Needs to raise capital to sustain operations.
  • Pump newsletter campaigns have been in place.

We will continue to track the ups and downs of the LIVE story.

Marijuana Hype…

Hd Retail Solutions (OOTC:HDRE) has changed its name and stock symbol to Greenscape Laboratories (OOTC:MJLB) ($0.34).  HDRE was added to our cannabis  screen on 4/23/2014.  It seems the newly formed company will have 76 million shares outstanding.  We believe this also marks the first  press release for the company.  We will continue to track the story.

For a list of stocks we are tracking in the Marijuana space please go here.

**Please note that our decision to buy selected marijuana names is just based on our desire to ride the hype surrounding the sector and not an endorsement of their operations.  In the long-term, most of the marijuana stocks being hyped will likely come crashing down.  Also note that on 3/17/2014 we  mentioned that we have liquidated most of our marijuana holdings.

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

Sincerely,

The GeoTeam