GEO Investing

Calls to Action: GeoBargain on the radar CTDH ($1.03) –  We plan to lock in some profits in CTDH. Shares eclipsed the $1.00 mark in Friday’s trading session, up 400% from our first mention.  Please see detailed  history here.   We caution our members that we believe the stock has been pumped in the past.  We will be keeping a close vigil on promotional activity.

General Highlights:

  • ChinaHybrids
    • CAAS ($8.76) –  Completed sale of idle land use rights in Jingzhou City, proceeds of $5 million in net income (roughly $0.17 EPS) for Q2 2014.
    • CBPO ($42.55) –  Announced favorable reduction in value added tax rate on sales of a wide range of products in China.
    • YONG ($7.08) – Expects going private transaction to be  completed by the end of June 2014.
    • AUTCF ($12.00) –  Announced settlement with SEC.  AUTCF to pay $4.35 million civil penalty to the SEC.
  • U.S. News
    • ARTX ($4.67; marked down in premarket to $4.15) – Announced follow on order of $36 million for its virtual clearance training suite program.  However, company lowered full year 2014 revenue and EBITDA guidance to $105 to $111 and $7.8 to $8.3 from previously stated $117 to $123 and $8.0 to $8.5, respectively.
  • Speculative
    • ONVC ($0.25) – Reports  year end 2013 results of $0.05 per share; announced special cash dividend of $0.02 (8% yield) and an agreement to buy 250,000 shares from one of its shareholders at $0.45 (80% premium to current price).  The company has flirted with profitability in the past, so we are not sure if this quarter’s performance is sustainable.

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

Disclosure: Long CAAS, CTDH; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

China Automotive Systems (NASDAQ:CAAS) ($8.76) – a leading supplier of power steering components and systems to the Chinese automotive industry, today announced that the company completed a land rights sale to the Jingzhou Land Reserve Center, a local PRC government bureau, and it had received cash of RMB 40 million ($6.4 million) in June 2014 and expects to receive cash of approximately RMB 12 million ($1.9 million) in July 2014. The company had made approximate gain of $5.0 million in net income for the second quarter 2014.

China Biologic Products (NASDAQ:CBPO) ($42.55) – a plasma-based biopharmaceutical company, today announced that, due to the reduction and unification of the value added tax (“VAT”) rate on sales of a wide range of products by the Ministry of Finance of China and the State Administration of Taxation of China effective on July 1, 2014, the company’s VAT rate levied on its human blood and blood component based biopharmaceutical products will decrease from 6% to 3%. Although the company is still evaluating the impact of this favorable VAT reduction, it expects that this VAT policy change will have a positive impact on its sales and net income in the second half of 2014 and afterwards.

Yongye Intl (NASDAQ:YONG) ($7.08) – a leading developer, manufacturer, and distributor of crop nutrient products in the People’s Republic of China, today  announced that the company and the parties to the Amended Merger Agreement are still working to complete the Merger and that they expect to complete the Merger by the end of June 2014.

Autochina Intl (OOTC:AUTCF) ($12.00) – AUTCF is China’s largest commercial vehicle sales, servicing, leasing, and support network. The company today  announced that it has reached an agreement with the SEC to settle the lawsuit filed in April 2012 against the company and 11 investors. Under the terms of the agreement, the company is going to pay a $4.35 million civil penalty to the SEC.

On the U.S. Front…

GeoBargain/Specials…

Ctd Holdings (OOTC:CTDH) ($1.03) – GeoBargain on the Radar CTDH sells cyclodextrins and related products to the food, pharmaceutical, nutritional, and other industries, primarily for use in diagnostics and specialty drugs with continuing growth in research and new product development.   Shares eclipsed the $1.00 mark in Friday’s trading session, up 400% from our first mention.  Please see detailed  history here.   The stock has had a strong move in a short period of time, combined with a rich valuation has led us to lock in some profits.   We will continue to watch vigilantly, as the stock has been part of past pump campaigns.

In Other U.S. News…

Arotech (NASDAQ:ARTX) ($4.67) – ARTX provides defense and security products. The company today announced that it has received an Engineering Change Order from the U.S. Army’s Program Executive Office for Simulation, Training, and Instrumentation valued at $36 million, among which $20.4 million is funded and the other $15.6 million is in options. This order has increased the company’s net backlog to $80.6 million. In addition, the company lowered its full year 2014 revenue and EBITDA guidance to $105 to $111 and $7.8 to $8.3 from previously stated $117 to $123 and $8.0 to $8.5, respectively.

Speculative…

Online Vacation Control Holdin (OOTC:ONVC) ($0.25) – ONVC provides vacation travel and marketing services in Florida through its subsidiaries. The company reported year end FY 2013 results:

  • Total revenue for fiscal year 2013 is 12.6 million.
  • Earnings per share (EPS) for fiscal year 2013 was $0.05.

The company has flirted with profitability in the past, so we are not sure if this quarter’s performance is sustainable. In addition, the company also announced special cash dividend of $0.02 (8% yield) and an agreement to buy 250,000 shares from one of its shareholders a $0.45 (80% premium to current price). Quotes from management,

“This action demonstrates our commitment to returning cash to our shareholders. The Board of Directors felt it was appropriate at this time to issue a special dividend because of the strength of our performance and our healthy cash balances. The Board, while not committing to a regular dividend payment, will, however, consider cash dividends in the future as circumstances warrant.”

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

Sincerely,

The GeoTeam