Call(s) to Action:

Recent run in shares of DGLY (~$30, down in premarket trading) continue to cause a frenzy of activity in the shares of other security surveillance stocks.  Names we are watching are ISNS, VII, ITI, whose stocks that are rising who have no parallel to the body worn camera technology  that dgly posses and is monetizing.  It is unclear how long they will pump, but we believe they will crash hard at some point.    In related news, its possible GeoBargain on the radar SPCB ($12.51) which closed at a new 52 week high yesterday could see an uptick in shares due to its involvement in the security surveillance field.  SPCB has a much better growth profile than ISNS, VII and ITI.

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

  • ChinaHybrids
    • CNIT ($5.00) –  Launched China’s first integrated, industry-application oriented Cloud Platform, which is based on its proprietary Cloud-App-Terminal model.
    • PWRD ($21.23)Announced that it has entered into a definitive agreement to sell a total of 30,326,005 class A ordinary shares of Shanda Games Limited (GAME), being the entire equity interest that Perfect World previously acquired. The Company will sell these shares to Shanghai Buyout Fund L.P., a third party unrelated to Perfect World
    • HPJ ($7.23, marked up in pre market trading)announced that it has started shipping its 4600 mAh lithium battery product developed for the newly introduced Acer Iconia Tab 8, a tablet offering consumers high-end features including 7.5 hours of continuous video watch time.
    • KNDI ($17.54, marked up in pre market trading) –  3 of KNDI pure EV models are included in China’s first list of purchase tax exemption for new energy vehicles.

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

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

Summary of general highlights:

On the Asian Front…

China Information(NASDAQ:CNIT) ($5.00) — a leading provider of Internet-based platforms, products and services in China, today announced that

the Company officially launched China’s first integrated, industry-application oriented Cloud Platform (www.cnitcloud.com), which is based on its proprietary Cloud-App-Terminal (CAT) model.

The new state-of-the-art Cloud Platform is developed to improve efficiency for customers in various sectors such as education, healthcare, property management, advertising, and information distribution. Some of the CNIT Cloud Platform’s broad applications include facilitating cloud lesson preparation and teacher-parent interaction, automating hospital reservation systems and improving doctor-patient communication, monitoring elevator safety and emergency response, enabling online ad exchange via the cloud network, and distributing government announcements.

Mr. Jiang Huai Lin, Chairman and Chief Executive Officer of CNIT, commented,

“We are very excited about this new milestone as we are moving full speed on our transition to a cloud-based business model. Through open web API, we look forward to collaborating with third party developers to create additional add-on features to enrich our eco-system. Cloud-based business model, especially sector-specific applications and solutions, is still in its infancy in China. With more Chinese consumers embracing cloud technologies to improve their lifestyle, I believe we are well positioned to capitalize on the growing market demand in China.”

Perfect World Co (NASDAQ:PWRD) ($21.23) – a leading online game developer and operator based in China, today announced :

it has entered into a definitive agreement to sell a total of 30,326,005 class A ordinary shares of Shanda Games (NASDAQ:GAME) ($6.28) –  being the entire equity interest that Perfect World previously acquired. Pursuant to the agreement, the Company will sell these shares to Shanghai Buyout Fund L.P., a third party unrelated to Perfect World, at a premium for a total consideration of US$104,624,717 in cash. The transaction is expected to be consummated in 30 days, subject to the satisfaction of customary closing conditions.

In addition, Perfect World has also entered into an agreement to withdraw from a consortium (the “Consortium”) to which the Company had joined per an adherence agreement to the consortium agreement dated as of January 27, 2014 between Shanda Interactive Entertainment Limited, the controlling shareholder of Shanda Games, and Primavera Capital (Cayman) Fund I L.P., an affiliate of Primavera Capital Limited, in the proposed “going private” transaction with respect to Shanda Games. The Consortium had submitted a preliminary non-binding proposal letter dated January 27, 2014 (the “Proposal”) to the board of directors of Shanda Games, whereby the Consortium proposed to acquire Shanda Games in a “going private” transaction for US$3.45 per class A or class B ordinary share of Shanda Games, or US$6.90 per ADS. The Proposal constitutes only a preliminary indication of the interest of the Consortium and is subject to negotiation and execution of definitive agreements relating to the proposed acquisition transaction. Upon the withdrawal on September 1, 2014, Perfect World ceased to be a member of the Consortium.

Highpower Intl (NASDAQ:HPJ)($7.23, marked up in pre market trading) – 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 :

it has started shipping its 4600 mAh lithium battery product developed for the newly introduced Acer Iconia Tab 8, a tablet offering consumers high-end features including 7.5 hours of continuous video watch time.

Mr. George Pan, Chairman and CEO of Highpower, commented,

“Acer is a world-famous brand, and we are pleased to serve as a contributor to this newest high-end tablet. We feel that our battery performance and quality, along with our extensive industry experience will allow us to gain more market share as a provider to a growing worldwide tablet market in the coming years. Highpower is a battery manufacturer capable of applying our expertise to a number of different markets, and our new relationship with Acer is strong evidence that our product offering is gaining traction in the rapidly growing mobile device market.”

Kandi Technologies Group (NASDAQ:KNDI) ($17.54, marked up in pre market trading) – today announced :

according to public Notice No. 54 issued by China’s Ministry of Industry and Information Technology (“MIIT”) and State Administration of Taxation (“SAT”), three of Kandi’s pure Electric Vehicle (“EV”) models were chosen to be on the first approved list of New Energy Vehicles to qualify for a purchase tax exemption at the amount of 10% of the vehicle’s total purchase price.

Mr. Hu Xiaoming, Chairman & CEO of Kandi commented,

“We are very pleased that Kandi’s three EV models now enjoy the tax break, which offers EV perspective buyers extra incentives. Most importantly, it indicated that Chinese government has made significant efforts in actively advocating the development of new energy vehicles to reach production and sales targets of 0.5 million New Energy Vehicles (NEVs) by 2015 and 5 million NEVs by 2020. We believe the latest tax exemption, along with a series of government incentives and subsidies, will have a very positive impact on the sales of Kandi Brand EV in China going forward.”

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

Sincerely,

The GeoTeam