GEO Investing

Call(s) to Action: None

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

  • ChinaHybrids
    • BOPH ($1.55) – Products picked up by nearly 4,000 new Chinese medical facilities in six month span.
    • CXDC ($7.65; marked down pre market under $7.00) – Bearish  article by Bleecker Street Research, “China XD Plastics: When The Numbers Don’t Add Up, There’s Over 80% Downside.”
    • SFUN ($9.50) –     announced that it has entered into strategic cooperation agreements respectively with China’s No.1 and No.4 new home agency companies in China.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the radar ENSV ($2.72) – Provided Q2 2014 guidance, revenue and net income slated to decline vs Q2 2013 due to a three-week halt in frac water heating project.
    • GeoBargain GCAP ($7.10) –  Announced June  monthly metrics with retail trading volume and institutional trading volumes increasing 7.3% and 30.7% vs prior year.  GCAP has a tough financial comparison coming up for its Q2 2014, but looks to have a possible “Geo Power Ranking” (GPR) of 7 beyond that, with strong estimated EPS growth,  2015 vs. 2014.
  • Speculative Plays
    • NTIP ($2.03) –  Beginning to track NTIP, an Intellectual Property stock generating royalty revenues and net income.  Company recently increased share repurchase program and is trading near 52 week highs.  Please reference a recent Seeking Alpha  article for more color on the story.
  • Pump and Dumps
    • WSTI ($0.81) Yesterday we issued our follow up article on the WSTI story, minutes before the closed Auspex Research also issued a follow up  report, “WindStream Technologies – Crashed But Still Overvalued?”

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

Disclosure: Short WSTI, May look to re-enter GCAP ; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

Bohai Pharmaceuticals(OOTC:BOPH) ($1.55) – a leading manufacturer and marketer of traditional Chinese medicine (TCM),  announced:

“in the first six months of this year, its products increased their market penetration by an additional 3961 hospitals in China.

Of this total, 192 were level two hospitals — medium-to-large size city facilities providing comprehensive health services. The remaining 3769 hospitals were level one — smaller rural facilities and clinics tasked primarily with providing preventive care.

Bohai added 43 distributors during the January 1 through June 30 period, and also opened a new marketing office in Beijing responsible for promoting the company’s TCM products across China.

“We are thrilled to be making such rapid progress increasing the market presence of our leading TCM products,” said Mr. Hongwei Qu, Bohai Chairman and CEO. “This progress should, we believe, result in significant revenue and earnings growth as we enter this new fiscal year.”

For the first nine months of fiscal (June 30) 2014, Bohai earned about $18.0 million, or $1.01 per basic common share, a 22 percent improvement on its net income of $14.8 million, or $.83 per basic common share, in the first nine months of fiscal 2013.

The company said it expected market penetration for its TCM products to continue “at an accelerating pace.”

Soufun Holdings (NYSE:SFUN) ($9.50) – the leading real estate Internet portal in China, today announced :

“it has entered into strategic cooperation agreements respectively with China’s No.1 and No.4 new home agency companies, Shenzhen World Union Properties Consultancy Co., Ltd. (“World Union”) (stock code: 002285) listed on the Shenzhen Stock Exchange and Hopefluent Group Holdings Limited (“Hopefluent”) (stock code: 00733) listed on the Hong Kong Stock Exchange.”

Vincent Mo, SouFun’s executive chairman, comments:

“This is a top players’ cooperation and partnership. As the leading online platform in China’s huge real estate market, SouFun has been looking for the leading off-line players to work together for the industrial upgrade of China’s expanding new home and resale market. Both World Union and Hopefluent are the front runners of China’s new home agency and consultancy companies. They are SouFun’s best choices for forming strategic O2O partnerships. I am sure that these strategic cooperation partnerships will not only allow SouFun a broader and deeper access in real estate transactions but also enhance World Union and Hopefluent’s leadership, innovation, and evolvement by integrating internet and mobile elements into their very successful offline operations. I look forward to seeing a new World Union and a new Hopefluent. “


Enservco Corp (AMEX:ENSV) ($2.72) -GeoBargain on the Radar ENSV provides well-site services to the onshore conventional and unconventional oil and gas industries. The company provided its  guidance for the operations of second quarter 2014:

  • Revenue is expected to be about $600,000 below the $7.9 million reported in second quarter 2013.
  • Operating loss is expected to be $1 million compared to operating income of $550,000 in the prior year.

“The expected revenue decline is due to a three-week halt in frac water heating for a large customer in the DJ Basin. The expected operating loss is due to (i) the reduction in revenue; (ii) the addition of safety coordinators during 2013 at each of the company’s locations as a part its commitment to high safety standards;  (iii) higher maintenance and repair costs associated with the Company’s expanded service fleet; and (iv) the labor costs incurred in retaining the crews waiting for the re-start of activity with the aforementioned large DJ Basin customer.”

Gain Capital Holdings (NYSE:GCAP) ($7.10) – GeoBargain GCAP is a global provider of online trading services. The company  reported certain operating metrics for the month of June:

  • Retail OTC trading volume[1] of $166.1 billion, an increase of 7.3% from June 2013.
  • Total institutional trading volume of $479.9 billion, an increase of 30.7% from June 2013.

GCAP has a tough financial comparison coming up for its Q2 2014, but looks to have a possible “Geo Power Ranking” (GPR) of 7 beyond that, with strong estimated EPS growth,  2015 vs 2014.

Speculative Plays…

Network-1 Technologies (OOTC:NTIP) ($2.03) – NTIP develops, licenses, and protects intellectual property assets related to various computing, telecommunications, data networking, and Internet related technologies. Here are our reasons for tracking:

  • Intellectual property stocks have received lots of hype in the last few years.
  • Unlike other IP stocks this company is generating royalty revenues and net income.
  • The company claims to own 21 patents, some of which are sexy applications such as:
    • delivery of power over Ethernet (PoE) cables for the purpose of remotely powering network devices, such as wireless access ports, IP phones and network based cameras;
    • foundational technologies that enable unified search and indexing, displaying and archiving of documents in a computer system;
    • enabling technology for identifying media content on the Internet and taking further action to be performed based on such identification including, among others, the insertion of advertising and the facilitation of the purchase of goods and services related to such content;
    • systems and methods for the transmission of audio, video and data over computer and telephony networks in order to achieve high quality of service (QoS).
  • The Company’s Remote Power Patent has generated licensing revenue in excess of $60,000,000 from May 2007 through March 31, 2014.
  • The company has aggressively been buying back stock from the open market and it announced on 06/04/2014 that its Board of Directors has authorized an increase to its previously announced share repurchase program pursuant permitting the Company to repurchase up to an additional $5,000,000 in shares of the Company’s common stock over the next twelve months.
  • There is also an Seeking Alpha article released on 06/04/2014 which shed more light on the company.


  • Need to determine the amount of time left on the licensing agreements that are currently deriving revenue from.
  • Need to determine how many patents they are currently monetizing.
  • The revenue producing timeline needs to be determined, related to patents they are not currently monetizing.
  • Need to interview the management.

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


The GeoTeam