GEO Investing

Call(s) to Action:

SPCB ($9.08), Digital Identify Solutions –  files shelf which we presume will be used for making future acquisitions and/or filling its growing pipeline of orders.  Just like GTT and IG, if shares pullback we will use as an opportunity to add trading shares to our core positions.

CSTI ($12.20), Video Security Products – Conducted follow up interview with CSTI management to better understand the implication of the its most recent acquisition of COHU.  We do not think the market has fully priced in this transformative acquisition into the shares of CSTI.  We are looking to add to our position.

NHTC ($7.20), Nutritional Products – Reported preliminary Q2 2014 results; expects revenues to be $34.2 million vs $10.6 million in the prior year period an up sequentially from the $23.2 million reported in Q1 2014.   We are still long.  If shares open weak or down we will look to add to our position.

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

  • ChinaHybrids
    • CMCI ($0.90), Dairy Products – Stock about to break $1.00 to the upside, its possible investors are starting to take notice of strong Q3 2014 results reported at the end of May.  Stock trading at a P/E of 2, we will continue to perform due diligence on CMCI.
    • HPJ ($4.48), Batteries – Received Government funding for development of residential energy storage systems.
  • U.S. News
    • EDUC ($3.90), Children Books – Reported strong Q1 2015 results; revenues of $7.1 million vs $5.9 million and EPS of $0.06 vs $0.02. Strong commentary from management and pays a healthy 8% dividend.
  • GeoBargains/GeoBargains on the Radar
    • AXLE ($0.47), Recreational Vehicle Accessories – Recently reported strong Q3 2014 results; reporting a 61% increase in revenues and EPS of $0.01 vs a loss in the prior year.  For our full note of reasons for tracking please reference our 6/19/2014 email.   Coding as a GeoBargain on the radar at $0.47, will attempt to interview management.
    • GeoBargain on the radar REPR ($0.26) –  Continues to report strong sales growth ; Q1 2014 sales grow 44% vs prior year.
  • Speculative Plays
    • INSA ($1.50), TBD – Attempting to close two acquisitions that will result in the company  going from near zero in revenues to roughly $100 million in revenues.  Fully diluted share is around 60 million.
    • PGSC ($2.95), Mobile Marketing – Completed a reverse merger on 3/13/2014.  Tracking as a possible pump and dump due to raising money at a significant discount (under $0.30) from current price.  The stock must raise more capital.   Stock has risen from $0.40 to $2.95 in the last 3 weeks.
  • Marijuana Hype
    • CNBX ($1.06) – Stock broke $1.00 to the upside.

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

Disclosure: Long SPCB, CSTI, HPJ, NHTC, REPR; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

Highpower Intl (NASDAQ:HPJ) ($4.48) – a developer, manufacturer, and marketer of lithium and nickel-metal hydride (Ni-MH) rechargeable batteries, and a battery management systems and battery recycling provider, today announced:

“ that the Company has received funding of RMB3,860,000 (approximately $622,580) from Shenzhen Strategic Emerging Industry Development Specialty Funds, set up by the Development and Reform Commission of Shenzhen Municipality, to further develop the Company’s production line for its in-house developed solar celled and off-grid home-use energy storage systems products.  The funds will be used to purchase development and production equipment making such residential systems.”

On the U.S. Front…

GeoBargain/Specials…

Supercom Ltd Ordinary Shares (NASDAQ:SPCB) ($9.45) – GeoBargain on the Radar SPCB provides electronic monitoring, identification, and security products and solutions to governments, and private and public organizations in Europe, the United States, and Israel.  Announced:

that it has filed a universal shelf registration statement on Form F-3 with the US Securities and Exchange Commission (SEC). The registration statement is subject to review by the SEC.

Quotes from management:

“We have no immediate need to raise capital. However, once approved, this shelf prospectus provides us with an excellent vehicle to raise capital and fund an accretive acquisition should a potential acquisition opportunity materialize. In addition, it will provide us with the opportunity to increase working capital as necessary, to enable us to support the large contracts that exist in our pipeline of proposals and bids, if and when awarded to us.”

Tjt (OOTC:AXLE) ($0.47) – engages in repairing and reconditioning axles and tires for the manufactured housing industry in the United States.   Recently reported strong Q3 2014 results (7/11/2014):

  • Net sales in the third quarter increased 61 percent to $1,528,135 compared to sales of $949,437 during the third quarter of the prior year.
  • Net profit of $35,384, or $.01 per diluted share, for the third quarter of fiscal year 2014 an improvement of $38,077 over the third quarter of the prior year when the Company reported a net loss of $2,692.

Quotes from management:

“We are very pleased to report another profitable quarter for T.J.T., Inc. We look forward to continuing to improve the operational results as we enter the summer and fall quarters.”

For our full note of reasons for tracking please reference our 6/19/2014 email.   Coding as a GeoBargain on the radar at $0.47, will attempt to interview management.

In Other U.S. News…

Educational Development (NASDAQ:EDUC) ($3.90) – EDUC operates as a trade publisher of the line of educational children’s books in the United States. The company reported strong first quarter 2015 results:

  • Revenues in this quarter was $7.1 million as compared to $5.9 million in prior year.
  • EPS of $0.06 vs $0.02 in prior year.

Quotes from management:

“Net revenues for the last four months, February, March, April and May have shown 20% plus gains year over year and the trend has continued in June with a 23% net revenue gain.

The Company operates with minimal debt, however, we have begun to build inventory for the anticipated surge in sales during the Fall selling season. The Company has not recorded a losing quarter in 27 years and fully expects to maintain its historical dividend.”

The current dividend yield rate for the company is 8%.

Speculative Plays…

Progressive Green Solutions In (OTCCB:PGSC) ($2.95) – a development stage company, focuses on the sale of mobile marketing solutions for businesses through the launch of a Web-based platform.  Reasons for tracking:

  • Reverse merger with increasing revenues and tight share structure. Completed a reverse merger on 3/13/2014.
  • Operate in sexy industry

Caveats:

  • Still losing a lot of money
  • Have to raise a lot of capital, already set at raising capital under $1 at a price of $0.13

Not sure if this will be a pump and dump candidate but with the company raising money at $0.13 which is significantly lower than its current price of $2.95, we could foresee a scenario where a pump campaign occurs to increase volume so these shares can be sold.

Stock has risen from $0.40 to $2.95 in the last 3 weeks.

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

Sincerely,

The GeoTeam