Call(s) to Action: Shorting WSTI ($1.35) based on clear evidence that the company has been the recipient of a $1 million pump campaign and it will have to raise significant capital to execute its growth plan even if the company is legit. We were also unable to identify where some of the shares issued to complete the reverse merger ended up, roughly 18 of the 40 million. Please see short thesis article published by Penny Stock Realist here. (We are currently working on full article. We were able to locate shares this morning.)
Here are the stories that the GeoTeam is following today… (Please see full disclosures at bottom)
- ChinaHybrids
- OSN ($1.08) – Reported strong Q1 2014 results. EPS of $0.02 vs $0.00 in prior year on 92% revenue growth.
- VIMC ($2.82) – Announced two contract wins, totaling $4.8 million.
- KANG ($17.19) – Announced that it has completed 100% acquisition of Shanghai Huajian Clinic Ltd. (“Huajian”), a well-known middle-to-high end brand in Shanghai’s medical examination market.
- CBEH ($0.35) – Received an order from the SEC announcing the commencement of an action to de-register the company. The Company will continue efforts to become current with its filings and oppose the action.
- YONG ($6.88) – Updated status of going private deal, stating the parties are still working on logistics to complete the transaction. Originally expected deal to close by the end of June 2014, now expects deal to close by July 4, 2014.
- FU (halted) – Appeal hearing set for July 16, 2014, via 10-K.
For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.
Disclosure: Short FU; Attempting to short WSTI Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)
Summary of general highlights:
On the Asian Front…
Select China Earnings…
| Stock | Price** | EPS Estimate | Reported EPS | Prior Year Reported EPS |
| Ossen Innovation Co (NASDAQ:OSN) | $0.97 | n/a | $0.02* | $0.00* |
* 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…
Vimicro Intl (NASDAQ:VIMC) ($2.82) – a leading video surveillance technology and solution provider, today announced that it won two competitive bids to supply SVAC-compliant video surveillance camcorders and systems to Maoming City in Guangdong Province valued at RMB 10 million and Lanzhou City in Gansu Province valued at RMB 20 million, with estimated aggregated contract value of RMB 30 million, or USD 4.8 million approximately.
“We are pleased to announce winning of two competitive bids from Maoming of Guangdong Province and Lanzhou of Gansu Province, demonstrating the expansion of our SVAC adoption territory into two more provinces. China’s SVAC (Surveillance Video and Audio Coding) national video surveillance technology standard, promulgated in 2011, was co-developed by Vimicro and The First Research Institute of Ministry of Public Security of China. In early 2014, Guangdong province was officially selected as the lead demonstration of provincial-wide adoption of SVAC national standard. Maoming’s competitive bid winning is a prelude to a stream of SVAC projects to be carried out by various cities and districts in Guangdong within the next 12 to 18 months,” commented Dr. John Deng, Vimicro’s Chairman and CEO. “Riding on the megatrend of SVAC national standard adoption across China, Vimicro will leverage its first-mover advantages based on its proprietary multimedia IC technology to further penetrate a wider array of geographic areas and industries, to create long-term value for our shareholders.”
Ikang Health Care Group (NASDAQ:KANG) ($17.19) – the largest provider in China’s fast growing private preventive healthcare services market in terms of revenue in 2013, today announced that it has completed 100% acquisition of Shanghai Huajian Clinic Ltd. (“Huajian”), a well-known middle-to-high end brand in Shanghai’s medical examination market. iKang first acquired a 33% equity in Huajian in January 2014, which has been disclosed in iKang’s prospectus for its initial public offering, and subsequently acquired the remaining 67% equity in Huajian.
Through this transaction, iKang acquired three medical centers with over 300 employees that provide a broad range of healthcare services to the mid-to-high end market in Shanghai. The Huajian team, led by Ms. Qian Hui, will join iKang while the Huajian brand is retained.
Mr. Lee Ligang Zhang, Chairman and Chief Executive Officer of iKang commented on the deal.
“Shanghai is the largest city in China by population and an important target market for iKang. Huajian’s three medical centers will be integrated into our solid local network, increasing our self-owned medical centers in Shanghai to 14 and the total number of our self-owned medical centers in China to 48. This acquisition allows iKang to continue leading the industry while strengthening our brand position and expanding our product and service offerings in Shanghai and its surrounding cities.”
“We believe that the scale of our operations is crucial to remaining at the front of the pack and continuing to lead this market,” Mr. Zhang concluded. “By selecting acquisitions such as Huajian that directly complement our service network and overall business strategy, we are able to maintain a strong brand in the upper market and support our corporate and individual customers in multiple locations. iKang has successfully acquired and integrated 25 medical centers among its existing self-owned 45 centers before the acquisition of Huajian, and our experiences have rewarded us with valuable insights that enable us to conduct acquisitions efficiently and effectively. We look forward to our successful integration with Huajian.”
China Integrated Energy (OOTC:CBEH) ($0.35) – a leading non-state-owned integrated energy company in the People’s Republic of China:
“ announced that the Company received an order from the SEC announcing the commencement of an action to de-register the company. The Company is committed to becoming current with its filings and is thus disappointed that the SEC has commenced this action, which we feel will work only to the detriment of our shareholders. We will continue our efforts to become current and oppose the action.”
Yongye Intl (NASDAQ:YONG) ($6.88) – a leading developer, manufacturer, and distributor of crop nutrient products in the People’s Republic of China, today announced that the parties are still working on the logistics to complete the amended going private transaction. Expect to close on or prior to July 4, 2014.
Fab Universal (AMEX:FU) (Halted) – Shares have been halted since 11/22/2013. The company filed its 10-k, which states its appeal hearing with the NYSE regarding the delisting of its stock will be held on July 16, 2014.
Recall, two articles by the GeoTeam exposed FAB’s undisclosed bond offering, and Alfred Little Group articles exposed wide ranging misrepresentations in the FU story.
For more timely information, particularly during the daily trading session, we urge our members to read our message board posts daily.
Sincerely,
The GeoTeam