Call to Action: UEPS provided an  update on South African Social Security Agency award.  No judgement is to be made for likely a year; UEPS has a  contract through February 2017 unless new judgment is ruled.  Timing of the decision is likely a slight positive for UEPS shares. This development may not be a strong enough catalyst to cause as an aggressive of a near term move in shares of UEPS as we hoped.  Currently still long calls.  Watching closely may unwind position.

  • ChinaHybrids
    • MY approved to develop and operate 300MW offshore wind and power project
    • YONGshareholders approved amended “going private proposal” of $7.10 per share.
    • TSL announced pricing of 8.8 million shares at $11.00 per ADS.
    • JKS commented on U.S. Department of Commerce’s decision of subsidy rate of 26.89% for producers and exporters in China.  JKS believes decision will have negative impact on solar industry.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain SLTC reported weak Q4 2014 results but makes significant acquisition; Announced acquisition of Lasta, an industry leading SaaS-based sourcing and spend management solutions company.  Lasta reported 2013 revenues of $11.0 million. (SLTC reported $15.7 million in 2014)
    • Bullish Seeking Alpha article on GeoBargain ISDR; author sees 100% to 150% upside
    • GeoBargain on the radar IG files S-3 offering for up to $35 million;  The purpose of the offering may likely be to step up the marketing efforts for its increasing its pipeline of approved drugs.
  • Pump and Dumps
    • UTMR up 66% since we discussed it may be an ideal pump candidate in 6/3/3014 email.

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

Disclosure: Long SLTC, ISDR, IG, UEPS calls ; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of Calls to Action:

Net 1 Ueps Technologies (NASDAQ:UEPS) ($11.30)  In our 5/12/2014 email we mentioned we have been following UEPS for several months due to strong top and bottom line financial results over the past several quarters.  We mentioned one of our GeoInvesting premium members had alerted our team of a legal issue revolving around a contract in South Africa (South African Social Security Agency (“SASSA”)  to distribute social welfare benefits that could potentially result in the company losing this contract, which represents  a significant  portion of its revenue.

In an 8k filed yesterday, UEPS provided update on SASSA award.  As stated above,  No judgement is to be made for likely a year; UEPS has a  contract through February 2017 unless new judgment is ruled.  Timing of the decision is likely a slight positive for UEPS shares.

We feel this development may not be a strong enough catalyst to cause as an aggressive of a near term move in shares of UEPS as we hoped.  We are still long UEPS calls, but may look to close out our position.

Summary of general highlights:

On the Asian Front…

China Ming Yang Wind (NYSE:MY) ($3.50) Wind Power, today announced its subsidiary, Jiangsu Mingyang Wind Power Technology Limited, (“Jiangsu Mingyang”), has been approved by Rudong Energy Bureau in Jiangsu Province, China, to exclusively develop and operate a 300MW off-shore wind power project off the coast of Rudong in Jiangsu Province, China, subject to certain conditions.

Yongye Intl (NASDAQ:YONG) ($7.06) – a leading developer, manufacturer, and distributor of crop nutrient products in the People’s Republic of China, today announced that, at the special meeting of stockholders of the Company (the “Special Meeting”) held today, the Company’s stockholders voted in favor of the proposal to approve the agreement and plan of merger of $7.10 per ADS.

Trina Solar (NYSE:TSL) ($11.60) -a global leader in photovoltaic (“PV”) modules, solutions and services, today announced that it priced the offering of 8,800,000 American Depositary Shares (the “ADSs”), each representing 50 ordinary shares of the Company, par value of US$0.00001 per share (the “ADS Offering”), at US$11.00 per ADS. Trina Solar has granted the underwriters in the ADS Offering a 30-day option to purchase up to an additional 1,320,000 ADSs to cover over-allotments.

Jinkosolar Holdings (NYSE:JKS) ($24.70) – a global leader in the solar PV industry, today commented on the U.S. Department of Commerce’s (“DOC”) preliminary decision on its countervailing duty (“CVD”) investigation of imports of certain crystalline silicon photovoltaic products from the People’s Republic of China.  The DOC’s preliminary findings determined that producers and exporters in China will be subject to a countervailing subsidy rate ranging from 18.56% to 35.21%. According to the findings, JinkoSolar will be subject to a preliminary subsidy rate of 26.89%; at the mid-point of the range.

“We are disappointed to see the DOC’s preliminary decision and believe that this will have a negative impact on the solar industry and will ultimately end up hurting US customers and US solar jobs the most,” commented Mr. Xiande Li, Chairman of JinkoSolar. “Ill-conceived trade barriers such as these only aid in reducing the competitiveness of solar energy against other forms of power generation. JinkoSolar has fully cooperated with the relevant authorities throughout the investigation and will continue to do so in the hope that international trade and fair competition will eventually prevail. While we respect the DOC’s decision, we strongly disagree with it. With a balanced and geographically diverse customer base, the tariffs are unlikely to have a significant impact on our entire business. We will continue to actively serve our customers in the US while we seek out other growth opportunities.”

GeoBargain/Specials…

Selectica (NASDAQ:SLTC) ($6.64) – GeoBargain SLTC provides guided selling, sales configuration, and contract lifecycle management solutions for mid-size firms to speed up sales cycle and streamline the contract process.   The company reported weak Q4 2014 results but made significant acquisition.  Q4 results:

  • Revenues of $3.5 million vs $4.2 in the prior year
  • Non-GAAP loss of $0.66 vs loss of $0.47

SLTC announced acquisition of Lasta, an industry leading SaaS-based sourcing and spend management solutions company.  Lasta reported 2013 revenues of $11.0 million.  The acquisition nearly doubles the size of  SLTC which reported revenues of $15.7 million in 2014.

Issuer Direct (OTCCB:ISDR) ($11.50) – GeoBargain ISDR helps companies produce and distribute their financial and business communications both online and in print.  Please see bullish Seeking Alpha article titled “Issuer Direct Corporation: The Market Is Mispricing A Stable, High-Margin Niche Software Provider”.   Author see 100% to 150% upside.

Igi (AMEX:IG) ($5.60) – GeoBargain on the Radar IG engages in developing, manufacturing, filling, and packaging topical semi-solid and liquid products for cosmetic, cosmeceutical, and pharmaceutical customers in the United States.  IG files S-3offering for up to $35 million;  The purpose of the offering may likely be to step up the marketing efforts for its increasing its pipeline of approved drugs.

Pump and Dumps…

Ultimate Rack (OTCCB:UTMR) ($0.70) In our 6/3/2014 email we mentioned UTMR had filed a reverse merger 8K with Travopoly Travel, LLC.  touting the accomplishments of its newly appointed director,  Robert Oblon.  We stated we watch closely for third party promotional campaigns.   We have yet to see any promotional emails or newsletter, but shares have risen 66% since our 6/3/2014 mention.

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

Sincerely,

The GeoTeam