Calls to Action: Added shares of GeoBargain on the radar IGEN ($0.29). The company signed a partnership agreement with Auto Knight Motor Club, one of the industry leaders in 24-hour roadside emergency services.
Here are the stories that the GeoTeam is following today… (Please see full disclosures at bottom)
General Highlights:
- ChinaHybrid
- U.S. News
- ISLE ($6.75) – announced strong fiscal 2014 Q4 non-GAAP earnings of $0.34 vs. $0.19, beating analyst EPS estimates of $0.22. Revenues in line.
- UVE ($12.96) – announced authorization of new $10 million share repurchase program.
- GeoBargains/GeoBargains on the Radar
- GeoBargain MOBS ($0.50) – Reported record sales of $507 thousand in its second quarter 2014 up 15% vs prior year. Latest product offering to make greater contributions to revenues.
- Tier 1
- ADVC ($0.42) – The company has grown revenues every year from 2001 to 2012. Need to obtain financials as the company has de-registered its stock in 2013. However, the company has paid special cash dividends and has approved a $1.5 million share repurchase program with a $0.37 max which could give the stock support.
- Speculative…
- GATA ($0.30) – With U.S. listed Indian stocks such as SIFY, REDF and IGC showing recent signs of strength, we are putting GATA back on our radar. Since completing its reverse merger in 2010 the company has handsomely grown revenues from $12 million to $56 million in 2013.
- Pump and Dumps
- PRKI ($0.51) – Watching closely for possible pump campaign. The company states its goal is to utilize the business models of companies such as Groupon and Living Social.
- GIGL ($1.00) – Watching for possible pump. The company owns and operates Giggles restaurants, an organic family friendly restaurant with play areas for kids. We think the alliance with high profile celebrities could lead to an aggressive pump campaign. No press release flow, but recently showcased on RedChip.com.
For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.
Disclosure: Long IGEN, MOBS ; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)
Sincerely,
The GeoTeam
Summary of general highlights:
On the Asian Front…
Select China Earnings…
| Stock | Price** | EPS Estimate | Reported EPS | Prior Year Reported EPS |
| Yingli Green Energy (NYSE:YGE) | $3.54 | -$0.24 | -$0.35* | -$0.63* |
* denotes non-GAAP; ** Pre-market
Please see our ChinaHybrid March 2014 quarter earnings screen (password GEO2014) for select companies that have reported earnings.
In Other News…
Kingold Jewelery (NASDAQ:KGJI) ($1.24) – one of China’s leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products:
“ announced that on June 16, 2014, its Board of Directors approved a special cash dividend of $0.08 per share of common stock. The total amount of cash distributed in the dividend is expected to be approximately US$5.3 million. The dividend will be payable on or about July 31, 2014 to stockholders of record as of June 30, 2014.”
Mr. Zhihong Jia, Chairman and CEO of Kingold, stated:
“We are very proud of our financial performance in 2013 and thus far in 2014, and we plan to continue to balance our need to invest in our Company with our continuing effort to grow our business. Through this dividend, we are also rewarding our stockholders for their support, which helped lead to our strong performance. We declared a dividend today as a means of rewarding our stockholders for our past financial success, and as a means of thanking our stockholders for their past and future support of Kingold. We expect the Company’s strong performance to continue, and we look forward to keeping our stockholders apprised of our progress.”
Yosen Group (OOTC:YOSN) ($0.92) – YOSN is a leading wholesale distributor and retailer of 3C merchandise: computers, communication products and consumer electronics. Signed exclusive cooperation agreement with Global 3D media for China hotel market.
“According to the Agreement, Yosen will be Global 3D Media’s exclusive channel operator in China’s hotel market. Global 3D Media will invest in products free trial in the lobby, elevators and guest rooms of 5-star and 4-star hotels. Yosen will be responsible for such channel development and continuing operation. For sales of any no-glasses 3D Pads demonstrated in hotel guest rooms, Yosen will enjoy a sales commission of 15% in addition to a 20% revenue sharing from all 3D advertisement sales throughout hotels. The first patch of signed hotels include well-known Shanghai Jin Jiang Hotel, Beijing People’s Great Hall Hotel, Qingdao Seaview Garden Hotel, The Garden Hotel Guangzhou for a total of 2059 guest rooms. According to the Agreement, there will be a total of 80,000 guest rooms planned for 3D products trial use at Phase II.”
On the U.S. Front…
Notable U.S. Earnings…
| Stock | Price** | EPS Estimate | Reported EPS | Prior Year Reported EPS |
| Isle Of Capri Casinos (NASDAQ:ISLE) | $7.25 | $0.22 | $0.34* | $0.19* |
* denotes non-GAAP; ** Pre-market
GeoBargain/Specials…
B- Scada (OOTC:MOBS) ($0.50) – GeoBargain MOBS develops software products for the visualization and monitoring of real time data in heavy industry worldwide. MOBS announced record sales in Q2 2014:
- Revenues for the second quarter 2014 were $507 thousand vs $440 thousand in the prior year period.
- EPS for the first quarter 2014 of $0.01 vs $0.01 in the prior year period.
Management Commentary:
“We continue to improve our revenue quarter over quarter,” said Ron DeSerranno, CEO. “Status Enterprise, our latest product addition, now has its first live deployment with many more current and new customers evaluating the system. We have high expectations for Status; we believe it will reshape the HMI/SCADA system market and make greater contributions to our revenue growth as the year progresses.”
Igen Networks Corp (OOTC:IGEN) ($0.29) – GeoBargain on the Radar IGEN invests in and manages private high-tech companies that offer products and services in the domains of wireless broadband, software as a service, and machine to machine solutions for small to medium size businesses, government agencies, and commercial enterprise. The company signed a partnership agreement with Auto Knight Motor Club, one of the industry leaders in 24-hour roadside emergency services. We have added to our position.
In Other U.S. News…
Universal Insurance (AMEX:UVE) ($12.96) – UVE operates as a property and casualty insurance company performing various aspects of insurance underwriting, distribution, and claims. UVE announced today that its Board of Directors authorized a share repurchase program under which the Company may repurchase up to $10 million of its outstanding shares of common stock through August 1, 2015. This marks the 6th repurchase announcement in 2014.
Tier One Pinks…
Advant-E (OOTC:ADVC) ($0.42) – ADVC through its subsidiaries, develops, markets, resells, and hosts software; and provides services that allow its customers to send and receive business documents electronically in standard and proprietary formats. Reasons for tracking:
- The company has grown revenues every year from 2001 to 2012. ($1.2 million to $10 million, company was profitable as of 2012 reporting EPS of $0.03)
- The company recently paid a special cash dividend
- Announced a share repurchase program with max price of $0.37, which should provide support for the stock
- Stock has steadily risen from $0.10 in 2009 to a recent high of $0.50
Caveats:
- The company deregistered its stock in 2013 and has not reported its financial information on it website or OTC Markets.com post 2012
We are contacting management to obtain up to date financials.
Speculative…
Groupe Athena Inc (OOTC:GATA) ($0.30) – GATA is a research and testing organization, provides technical and regulatory consulting services for biotechnical products, pharmaceuticals, diagnostics, medical equipment, and devices. With U.S. listed Indian stocks such as SIFY, REDF and IGC showing recent signs of strength, we are putting GATA back on our radar. Since completing its reverse merger in 2010 the company has handsomely grown revenues from $12 million to $56 million in 2013. Current results for fiscal 2014 are on record pace:
- Total revenues for the 9 month period this fiscal year were $51,195,666 which is well on pace to meet or exceed the previously announced 12 month guidance.
- Net earnings for the same period were $5,132,140, just shy of .11 per share.
Bullish outlook from management:
“The Indian pharmaceutical industry is increasingly focusing on exports to the United States and GATA is well positioned to help them get their products approved by the FDA for sales in the US. All of these exporter companies are potential clients and the Company believes it has an advantage over competitors due to the facilities based in India, and their ability to deliver quick feedback to clients that could result in expedited order generation. With recent additions to equipment, the company will continue to take on additional contracts and continue to anticipate further growth.”
GATA currently trading at attractive valuations:
P/E = 2.2
EV/Sales = 0.1
EV/EBITDA = 0.5
Price to Book = 0.7
The stock price has been stagnant since the reverse merger was completed. Please see our original note from 9/22/2011. We have performed no due diligence to asses fraud risk.
Pump and Dumps…
Perk Intl (OTCCB:PRKI) ($0.51) – PRKI intends to provide daily deals/coupons to consumers on consumer items, restaurant dining, and consumer services through its Website usellisave.com in the Greater Toronto Area. Reasons for tracking:
- Went public through a self written IPO on October 7th 2013
- Operates in a sector that has attracted many promotional campaigns before.
- With around 60 million shares outstanding, we feel it is an attractive candidate for pump.
- Company is not generating any revenue and needs to raise money to execute its business plan.
- Uses catchy names like Groupon and Living Social in its business plan.
Has not issued any press releases. We will monitor for promotional campaigns.
Giggles N` Hugs (OOTC:GIGL) – ($1.00) – GIGL owns and operates a family-friendly restaurant with play areas for children 10 years and younger. Reasons for tracking:
- Completed reverse merger on 12/30/2011
- The company went public under a different name Teachers Pet, through a self written IPO on September 24th 2007 the business plan called for the company to sell educational material/software to elementary schools and teachers in Phoenix, Nevada and Arizona
- In late 2010 the company became Giggles N Hugs when it entered a letter of intent to merge with a restaurant operator. At the time of the merger GIGL owned 2 restaurants. As of Q1 2014 the company generated revenue of $822,000 and still owns two restaurants.
- The company has aligned itself with recognizable names including Arnold Schwarzenegger, Mel Gibson, Tom Arnold, Sandra Bullock and many more.
- The company is attempting to raise up to $2.6 million with the help of Westpark Capital at a cost per share around $0.40. It appears that Westpark will receive warrants to purchase GIGL at $0.01.
- Westpark capital played a big part in the Chinese reverse merger scandal with at least 7 stocks being delisted from a major exchange.
We think the alliance with high profile celebrities could lead to an aggressive pump campaign. No press release flow, but recently showcased on RedChip.com.
For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.
Sincerely,
The GeoTeam