GEO Investing

Call(s) to Action:

CBAK ($3.78) – Q3 SEC filing provides more color on CBAK’s current financial state, disclosing that it lost its primary operating assets to foreclosure proceedings. The company is essentially approaching  zero cash ($272,115)  negative equity of $19.5 million and a current ratio of 0.06.  Although the company reports Q3 sales of $47.9 million, Q4 revenues will likely be close to zero.  We believe this filing supports our short thesis we published on 7/22/2014, “Loan Default And Foreclosure Bring China BAK Battery’s Solvency And Viability Into Question” . May look to add to our short position.

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

  • ChinaHybrids
    • HPJ ($4.85) – Announced it has started shipping rechargeable lithium battery solutions for use in new Timex Smartwathces.
    • NQ ($6.70) – Announced China Telecom adopts NQ mobile vLife technology for mobile cloud platform.
    • ZPIN ($14.06) – Reported Q4 2014 results; beat analyst top and bottom line results and guided above for Q1 2015 revenues.
    • LITB ($6.91) – Reported Q2 2014 results; beat analyst revenue estimates and guided above for Q3 revenues. Net loss was in-line with estimates.
    • JASO ($9.99) – Reported Q2 2014 results; missed analyst top and bottom line estimates, but raised full year 2014 shipment guidance.
    • EJ ($11.59) – Reported Q2 2014 results; Beat analyst revenue estimates, EPS in-line. Maintains full year 2014 revenue guidance, which is ahead of analyst estimates.
    • SCEI ($0.27) – Court appointed receiver acting on behalf of all shareholders who owned stock in publicly-listed Chinese reverse merger company Sino Clean Energy Inc  reported early progress in the case against the company.  We here at Geo wish those involved with this case the best of luck in what could be a groundbreaking endeavor.
  • U.S. News
    • ALOT ($12.35) – Reported strong Q2 2015 results; reported EPS of $0.18 vs $0.09 in prior year on 30% revenue growth (record quarterly revenues of $22.4 million).
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the radar IGEN ($0.18) – Reported significant increase in Q2 2014 revenues as recent acquisition begins to contribute.  Reported highest quarterly revenues in company history of $196,697 for Q2 2014 an 843% increase over Q1 revenues of $20,860, and a 355% increase over Q2 2013 revenues of $43,194.
  • Pump and Dumps
    • APPG ($0.69) – Yesterday we stated we were adding more short shares due to weakness in early trading as shares broke $1.00 to the downside.  Shares continued to dump throughout the trading day closing down 35%.  We are still short, may look to lock in some profits but believe there is more downside ahead.

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

Disclosure: Long HPJ, Short CBAK, APPG; 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
Zhaopin Ltd (NYSE:ZPIN) $15.14 $0.16 $0.20* $0.14*
Lightinthebox Holding Co Ltd (NYSE:LITB) $6.53 -$0.11 -$0.11* $0.10*
Ja Solar Holdings (NASDAQ:JASO) $9.53 $0.21 $0.14 -$0.58
E-House China Holdings (NYSE:EJ) $11.88 $0.14 $0.14 $0.11

* 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…

Highpower Intl (NASDAQ:HPJ) ($4.85) – 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 it started shipping its advanced compact lithium battery product developed for the newly introduced TIMEX® IRONMAN® ONE GPS+, a smartwatch offering consumers stand-alone wireless connectivity without a phone.

Quotes from management,

“Timex is an iconic watch brand. We are excited to work with Timex as a contributor to this innovative smartwatch technology. We feel that wearables represent an exciting area of growth for mobile devices, and smartwatches could provide a natural progression from current applications to help consumers further embrace wearable technology. We feel that our battery performance, seamlessness of services, and quality will allow us to compete for a proportionate market share of batteries for these products. Highpower is a flexible battery manufacturer capable of applying our expertise to a number of different markets, and this initial order is strong evidence that our product offering is gaining traction in the rapidly growing wearable device market.”

The TIMEX® IRONMAN® ONE GPS+ will be available for purchase this fall at,, AT&T stores, select sports specialty and electronic stores.

Nq Mobile (NYSE:NQ) ($6.70) – a leading global provider of mobile Internet services, today announced

a partnership with China Telecom that will bring NQ Mobile’s vLife technology to China Telecom’s “E Surfing” product. Under terms of the agreement, vLife will power the user interface for the mobile cloud platform, enabling China Telecom to present dynamic content, recommendations and promotions across video wallpapers, lock screen wallpapers and theme galleries.

China Telecom launched E Surfing to meet increasing demand for converged information services. The mobile cloud platform offers users a unified experience via website and mobile client. Combining the functionality of a mobile desktop along with data management, an app store, security protection and utility applications, the platform has been rapidly adopted, achieving 200,000 downloads per day.

NQ Mobile’s vLife interactive wallpaper is a popular promotional tool in the Chinese market, with frequent use by film studios in support of major motion picture releases. The technology also provides the basis of NQ Live, the unique and engaging platform for real-time content and application experiences. NQ Live is available through manufacturers including ZTE, Lenovo and Huawei and is powering the next generation of Sprint ID, known as Sprint Live.

On the U.S. Front…

Notable U.S. Earnings…

Stock Price** EPS Estimate Reported EPS Prior Year Reported EPS
Astro-Med (NASDAQ:ALOT) $13.94 n/a $0.18* $0.09*

* denotes non-GAAP; ** Pre-market


Igen Networks Corp (OOTC:IGEN) ($0.18) – GeoBargain on the Radar IGEN offers mobile asset/cloud service products. The company reported Q2 2014 results:

  • Highest quarterly revenues of $196,697, an increase of 355% from $43,194 in the same quarter last year, and an increase of 843% from $20,860 over Q1 2014.
  • Adjusted EPS of ($0.00) vs ($0.00) in prior year.

”ŒQuotes from management,

“I am pleased to see us achieve significant revenue and asset growth, which we were able to achieve by consolidating only the last 2 months of Nimbo LLC’s 2014 year to date revenues. We have aggressive goals for Nimbo LLC now owned by iGen Networks, and have targeted many opportunities in the current and coming quarters to grow this division at a high rate. We plan to continue to increase shareholder value by acquiring and growing world class assets, and remain focused on driving growth and achieving profitability.”

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


The GeoTeam