Call(s) to Action:

EXETF ($6.81) – We are adding to our position. Recent price action strength coupled with the company’s ability to refinance its debt leads us to believe a resolution is nearing in the company’s strategic review.  EXETF has stated on many occasions its intent sell it’s U.S. operations and even has an interested party.  However, a regulatory hurdle with the Office of the Inspector General (OIG) has held up this process.  The company has also state, that if a resolution with OIG is not resolved it will take steps to separate the U.S and Canadian business thorugh other alternatives discussed by the strategic committee.

CBAK ($3.85) – Marked up over $0.60 to $4.45 on a cooperation agreement press release.  We find it funny that CBAK would issue a press release on a “cooperation agreement” but still has not issued a formal press release about the impact of the loss of its primary operating asset on revenues.

WSTI ($0.70) – Issued an 8k about financing transaction at $0.40.  Where is your press release?

XGTI ($2.23) – Marked up on contract announcement that CACI will sub contract part of $497 million prime government contract to XGTI.  However, investors should note that XGTI only booked $250 thousand in revenue last quarter from a similar agreement.  We will look at as possible short opportunity if stock pumps hard.

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

  • ChinaHybrids
    • SOPW ($0.40) – Taking a closer look due to recent raise of $250 million in convertible debt and recent contract wins.  Legit company or pump campaign  in the making?
    • CNET ($0.72) – Regained compliance with NASDAQ.
    • CCM ($8.00) – Announced special dividend of $0.90 per share.  Second special dividend in last 12 months.
    • CYOU ($23.95) – Reported Q2 2014 results; beat analyst EPS estimates by $0.31 but missed on revenue and guided below on Q3 2014 revenues.
  • U.S. News
    • ACW ($4.97) – Reported Q2 2014 results; Increased earnings on flat sales and raised full year 2014 revenue and adjusted EBITDA guidance.  Reported non-GAAP EPS of $0.07 vs a loss of $0.08 in prior year and ahead of analyst estimates of $0.00.
  • Speculative Plays
    • MLFB ($1.65) – We will see if the company will try to hype its intention to create a spring-summer football league.
    • TNLX ($10.05) – After a long period of restructuring, the company has seen revenues increase and turned EBITDA positive in Q1 2014.  Comments in the press release regarding future outlook were unclear.  We will have to call the company to get more color on the restructuring process and business outlook.
  • Pump and Dumps
    • PBYA ($16.90) – Self written IPO that has changed its business focus from helping public companies with their filings to a Biotechnology company with an emphasis on cancer treatment. We were  unable to find SEC filings that discusses the new company and its drug pipeline.  The only verbiage about new direction was in a 13D filing from 6/3/2014.  We believe insiders own stock with average prices under $0.20.
    • CHGT ($6.00) – Watching for hype due to its entrance into the 3D printing market.
    • QUOR ($2.01) – Watching for pump campaign because the company’s focus is centered around a social media concept.
    • AVRN ($1.00) – Watching for pump campaign as this company enters the Bitcoin industry using all the right buzzwords when discussing its business plan including Google TV, Apple TV, YouTube, Facebook, Twitter and Skype.

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

Disclosure: Long EXETF, CCM; Short CBAK, 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
Changyou.com (NASDAQ:CYOU) $24.01 -$0.27 $0.04* $1.41*

* denotes non-GAAP; ** Pre-market

Please see our ChinaHybrid June 2014 quarter earnings screen (password GEO2014) for select companies that have reported earnings.

In Other News…

Chinanet Online Holdings (NASDAQ:CNET) ($0.72) – a leading B2B (business to business) Internet technology company focusing on providing online-to-offline (“O2O”) sales channel expansion services for small and medium-sized enterprises (“SMEs”) and entrepreneurial management and networking services for entrepreneurs in the People’s Republic of China, today announced that:

it received a letter on July 24, 2014 notifying the Company that it has regained compliance with NASDAQ’s filing requirements set forth in Listing Rule 5250(c)(1) (the “Rule”). The Company filed its Form 10-Q for the period ended March 31, 2014 on July 17, 2014.

Concord Medical Services(NYSE:CCM) ($8.00) –  a leading specialty hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced that on July 28, 2014, its Board of Directors:

declared a special cash dividend of US$0.30 per ordinary share (or US$0.90 per American Depositary Share (“ADS”)) on the Company’s outstanding ordinary shares.

Dr. Jianyu Yang, Chairman and CEO of the Company, said, “We’re pleased the Board of Directors has declared this special dividend, demonstrating our growth momentum and strong financial position. Today’s special dividend announcement is our second dividend payment in 2014.  Concord reiterates its policy of returning value to shareholders as we aim to fulfill our strategy of becoming a leader in China’s private healthcare services sector.”

On the U.S. Front…

Notable U.S. Earnings…

Stock Price** EPS Estimate Reported EPS Prior Year Reported EPS
Accuride (NYSE:ACW) $5.44 $0.00 $0.07* -$0.08*

* denotes non-GAAP; ** Pre-market

Speculative Plays…

Universal Capital Mgmt (OTCMKTS:MLFB) ($1.65) – MLFB is a private equity and venture capital firm specializing in investments in incubation, seed, startup, early venture, emerging growth, bridge financing, and PIPES. We will see if the company will try to hype its intention to create a spring-summer football league.

Trans-Lux Corp Common S (OOTC:TNLX) ($10.05) -TNLX is a leading designer and manufacturer of digital video display and LED lighting solutions for the financial, sports and entertainment, education, commercial, gaming and leasing markets. After a long period of restructuring, the company has seen revenues increase and turned EBITDA positive in Q1 2014.  Comments in the press release regarding future outlook were unclear:

“We now have an LED Lighting company that is producing revenue with a new line of LED displays, which is creating a stronger pipeline for our business,” said Mr. Allain.  “I believe the remainder of 2014 will be a busy and challenging year for Trans-Lux as we continue to unlock new opportunities and work with our Board of Directors to strengthen our balance sheet.”

We will have to call the company to get more color on the restructuring process and business outlook.

Pump and Dumps…

Panther Biotech (OOTC:PBYA) ($16.90) – PBYA focuses on the acquisition and development of small molecule therapeutics for the treatment of leukemia, lymphoma, and myeloma.

reasons for tracking-

  • The company went public in 2013 but within 6 months of the IPO it changed its original business plan of helping public companies with their reporting, to cancer treatment.
  • A new board of directors with some seemly impressive background are on deck. Below are brief descriptions for those directors:

Mr. Rich Rainey, CEO, CFO, Secretary and Treasurer of the Company, has over twenty years of experience in forming, capitalizing and running biotechnology companies.  Mr. Rainey has been affiliated with Avax Technologies for over fifteen years during which he helped the Company raise $60 million to fund drug development.  At AVAX, he oversaw the launch of clinical studies and commercial activities in United States, Europe and Australia of the Company’s cancer vaccines, while overseeing manufacturing and regulatory filings for Phase I, II and III protocols.

Mr. Irwin L. Zalcberg, Chairman of the Board of Directors, worked for Merrill Lynch between 1971-1974 as an account executive and on the floor of CBOE where he represented their proprietary risk arbitrage department.  From 1975-1991, Mr. Zalcberg was an independent trader on the CBOE and held a Chicago Board of Trade mini seat.

Dr. Jayesh Mehta, MD. , Director of the Board, is a hematologist with over fifteen years of experience in blood cancers.

Mr. David Moss, Director of the Board, is an experienced venture capitalist having over twenty years of experience in the life sciences, resource and technology space.

Dr. John T. Norton., Director of the Board, is an expert in cancer biology with 10 years of experience in cancer drug discovery & development.

  • With the new management and board of directors on deck, along with the self written IPO, the company will likely to hang on the biotechnology industry in the future.
  • The stock has risen from $4.25 to $16.90 in the past two months, mainly due to its transitioning to the biotechnology kind of story.
  • But as far as we can tell, the company has no products yet but sports a market cap around $79 million.

We found that insiders owned their stock with average prices under $0.20 per share.  It appears that one of the insiders attempted to use a public vehicle to monetize one of its compounds. The only verbiage about new direction was in a 13D filing from 6/3/2014 where,

“Change of business from a filing agent to a biotech company focused on the acquisition and development of small molecule therapeutics for the treatment of cancer.”

Since we are not bio-tech experts we will give the company the benefit of the doubt until we gather more information on the product pipeline. We assume the company will have to raise significant capital in its growth plan.

Changing Tech (OTCCB:CHGT) ($6.00) – CHGT focuses on the design, development, market, and sale of applications for mobile devices. The company intends to create applications that are primarily focused on improving personal and business productivity, and health and fitness monitoring for the Apple iPHONE, iPAD, and iPOD touch, as well as Google Android devices. CHGT will focus on building a diversified base of 3D printing assets. The company has formed a new subsidiary, 6th Dimension Technologies, and is already examining potentially lucrative new acquisition targets with promising projects in their development pipelines. We are watching for hype due to its entrance into this 3D printing market.

Quorum Corp (OTCCB:QUOR) ($2.01) – QUOR focuses on developing and operating social media and networking Website. We are watching it closely for pump campaign because the company’s focus is centered around a social media concept.

AVRA Inc (OTCBB:AVRN) ($1.00) – AVRN engages in selling, marketing, and distributing smart TV boxes to home consumers in the United States. We are watching for pump campaign as this company enters the Bitcoin industry using all the right buzzwords when discussing its business plan including Google TV, Apple TV, YouTube, Facebook, Twitter and Skype.

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

Sincerely,

The GeoTeam