GEO Investing

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

  • ChinaHybrids
    • YGE ($3.45) – Signed an agreement to supply 32 MW to a large scale project located in Japan.
    • NQ ($5.37) – Partners with A Wireless for device security solution.
    • SVA ($5.68) – Selected by Beijing Centers for Disease Control and Prevention to be a supplier of the seasonal influenza vaccine.
  • U.S. News
    • MPX, AWRE, and SGC all report strong increase in EPS on higher sales growth.
      • MPX; Q2 2014 sales of $47.9 million vs $42.2 million and EPS of $0.08 vs $0.05
      • AWRE; Q2 2014 sales of $6.8 million vs $4.4 million and EPS of $0.04 vs $0.01
      • SGC – Reported record EPS of $0.57 vs $0.23 in the prior year on 72.5% sales growth.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain MHH ($16.10) – Reported Q2 2014 results; EPS of $0.20 vs $0.18 in the prior year.   Expect to aggressively ramp up offshore recruiting hiring in second half of 2014.
    • GeoBargain on the radar CTDH ($0.92) – Closed private placement of 1.7 million shares at $1.00.

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

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

Summary of general highlights:

On the Asian Front…

Yingli Green Energy (NYSE:YGE) ($3.45) – the largest vertically integrated photovoltaic (“PV”) module manufacturer in the world, known as “Yingli Solar,” today announced that its wholly-owned subsidiary, Yingli Green Energy Japan Corporation (“Yingli Japan”),

“has signed an agreement to supply 32 MWs of multicrystalline PV modules to a large-scale project located in Okayama, Japan.

According to the agreement, the Company will deliver approximately 108,000 YGE 72 Cell Series modules for the project from January 2015 to December 2015. The project is financed by GE Energy Financial Services and developed by Pacifico Energy K.K., a utility-scale solar project developer based in Tokyo. This project is expected to generate 37,000,000 KwH of solar power annually.

“We are very delighted to see the successful implementation of the project, thanks to the efforts of all the parties involved. We believe that high quality modules are a key factor for the development of PV projects and Yingli Solar is absolutely the best choice for the project,” commented Mr. Kazuomi Kaneto, President of Pacifico Energy K.K.

We are pleased to cooperate with Pacifico Energy K.K for the first time, and hope that our first project together is the beginning of a strong and long-standing partnership,” said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “Our customer base in Japan has quadrupled since the fourth quarter of 2013, thanks to our strong reputation for product quality in the Japanese market. We look forward to deepening our relationships with our Japanese partners as this important emerging market continues to expand.”

Nq Mobile (NYSE:NQ) ($5.37) – a leading global provider of mobile Internet services, and A Wireless, one of the largest Verizon Wireless Premium Retailers, today announced

“the availability of a comprehensive, bundled security solution that ensures the safety of subscribers’ devices and the valuable data they hold. The solution is available at over 200 A Wireless stores across the US.

The new package combines physical device insurance with NQ Mobile’s award-winning security protection for both iOS and Android. The rollout marks the first availability of NQ Mobile’s Mobile Assurance product for iPhone, while Android users benefit from the market-leading NQ Mobile Security app. The combined offering ensures subscribers are protected against device damage or loss while also assuring safety from mobile threats such as malware, eavesdropping and malicious URLs.”

Sinovac Biotech(NASDAQ:SVA) ($5.68) – a leading provider of biopharmaceutical products in China, announced today that it has been selected by the Beijing Centers for Disease Control and Prevention (“Beijing CDC”) to be a supplier of the seasonal influenza vaccine to the citizens of Beijing for 2014.

“The Beijing CDC plans to order a minimum of 1.2 million doses of the seasonal flu vaccine this year from four domestic vaccine manufacturers for its vaccination campaign. Each manufacturer has agreed to supply no less than 300,000 doses. If required by the government, Sinovac may deliver additional vaccines. The exact quantity of doses to be ordered will depend on demand during the flu season. In 2013, Sinovac supplied approximately 400,000 doses of Anflu for the influenza vaccination campaign in Beijing. During last year’s campaign, the Beijing CDC administered a total of approximately 1.49 million doses for free to its target population. The Company expects to begin delivering the vaccines in the third quarter of 2014.”

On the U.S. Front…

Notable U.S. Earnings…

Stock Price** EPS Estimate Reported EPS Prior Year Reported EPS
Marine Products(NYSE:MPX) $8.71 $0.07 $0.08 $0.05
Aware, Inc.(NASDAQ:AWRE) $6.67 n/a $0.04 $0.01
Superior Uniform Group(NASDAQ:SGC) $18.97 n/a $0.57 $0.23

* denotes non-GAAP; ** Pre-market


Mastech Holdings (AMEX:MHH) ($16.10) – GeoBargain MHH provides information technology (IT) and specialized healthcare staffing services primarily in the United States. MHH reported second quarter 2014 results:

  • Q2 2014 revenues of $27.6 million vs $26.1 million in the prior year
  • Q2 2014 EPS of $0.20 vs $0.18 in the prior year; missing analyst EPS estimates of $0.22

Quotes from management:

The challenges that we faced in second quarter plainly illustrate a pressing need to accelerate the scale of our recruitment engine. With demand likely to remain at healthy levels during the second half of the year, we will look to aggressively ramp-up our off-shore recruiter hiring.”

Conference call indicated an earlier than expected project termination was part of the cause of the weaker performance in Q2 2014.

Ctd Holdings Inc. (BB:CTDH) ($0.92) –  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.   Yesterday, during the day CTDH announced the closing of a private placement for 1.7 million shares at $1.00 per share.  Please see our message board post from yesterday for full details.

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


The GeoTeam