GEO Investing

Call(s) to Action: ISNS

Yesterday we released an article on ISNS ($8,20) when the stock was trading at near $10 per share – “Buyer Beware: Image Sensing Systems Has Nothing To Do With Body-Worn Cameras” – citing why we believe the recent run of the stock on the heels of DGLY’s (~$26 in pre-market trading) quick meteoric rise (DGLY ranged in price between $11 to $34 in less than one week’s time!)  was unwarranted due to the company’s totally divergent business plan from its peer, as well as other factors.  ISNS is once again marked up in pre-market trading and may present an extended short play based on what we believe to be significant downside potential.  We are short.

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

  • ChinaHybrid News not released in U.S
    • VNET ($25.71) – VNET and Huawei, one of the biggest Chinese multinational networking and telecommunications equipment and services companies, partner with each other to establish China’s biggest SDN (Software-Defined Network) commercial network.
  • ChinaHybrids
    • VNET (marked up in pre-market trading to near $27) Announced $100 million share repurchase program.
    • XNET ($11.48) – Bullish Seeking Alpha article, author calls for a “likely double or better”.
    • CBPO ($53.09)Completed transaction to acquire additional equity stake in Guizhou Taibang Biological Products from 56.3%  to 76.2%.
    • CHOP ($0.61)Announced Q2 2014 results; revenues decreased by 24% and net loss of $0.02 vs loss of $0.01 in the prior year.
    • NFEC ($3.10)Won 3 heat supply contracts, total value near $1 million.
  • U.S. News
    • Will aggressively attempt to secure interviews with REGX, ALJJ and AXLE, 3 microcap plays with possible strong upside.  Keys interview points:
      • REGX ($1.41) – Regulatory changes on the horizon could be positive or negative for the company.
      • ALJJ ($3.63) – Can the company grow organically after benefitting from a pivotal acquisition it completed about a year ago.
      • AXLE ($0.42) – Does the company still see improving trends in the manufactured housing industry.
    • SLP ($6.71) Announced preliminary Q4 and full year 2014 revenues and announced the closing of a significant accretive acquisition that could increase revenue run rate by nearly 50%. (acquisition was announced in July; stock is up nearly 25% from this time)
    • IRBT ($31.07) – Spruce Point Capital issued update on short thesis of IRBT; see long term price target of below $20.00 per share.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the Radar IVFH ($1.56) – A minority shareholder of recently acquired Fresh Diet, is contesting the acquisition transaction by serving a complaint asking for the transaction to be voided.

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

Disclosure: Long IVFH, Short ISNS; 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
China Gerui Advanced (NASDAQ:CHOP) $0.47 n/a -$0.02* -$0.01*

* 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…

21 Vianet Group(NASDAQ:VNET) (marked up in pre-market trading to near $27) — the largest carrier-neutral Internet data center services provider in China, today announced :

21Vianet’s board of directors has authorized, but not obligated, the Company to repurchase up to US$100 million of its own outstanding shares within the next 12 months. The share repurchases may be made on the open market at prevailing market prices pursuant to Rule 10b5-1 and/or Rule 10b-18 plans, in privately negotiated transactions, in block trades or legally permissible ways from time to time depending on market conditions and in accordance with applicable rules and regulations.

China Biologic Products (NASDAQ:CBPO) ($53.09) – a leading fully integrated plasma-based biopharmaceutical company in China, today announced :

completed the transaction to acquire an additional 19.84% equity interest in Guizhou Taibang Biological Products Co., Ltd (“Guizhou Taibang”) and increased its registered equity interests in Guizhou Taibang from 56.39% to 76.23%.

Nf Energy Saving(NASDAQ:NFEC) ($3.10) – a leading energy saving services and solutions provider for China’s power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced :

Recently, the Company won three contacts from the North United Power Co. Ltd (NUP) to sell its products to heat supply retrofit projects at NUP’s subsidiaries of the Huhehot Thermal Power Plant and Baotou Thermal Power Plant. The contracts’ total value is close to $1 million.

On the U.S. Front


Innovative Food Holdings (OOTC:IVFH) ($1.56) – distributes origin-specific perishables, specialty food products, and healthcare products.   A minority shareholder of recently acquired Fresh Diet, is contesting the acquisition transaction by serving a complaint asking for the transaction to be voided.   From the 8k:

On September 3, 2014 the registrant’s subsidiary was served a complaint by Monolith Ventures, Ltd., in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida (the “Complaint”). The plaintiff listed in the Complaint, which was brought by a shareholder of less than 24% of the outstanding shares of The Fresh Diet, Inc., seeks to attack the registrant’s recently concluded acquisition of The Fresh Diet, Inc., which was approved by a majority of the Fresh Diet shareholders. In the Complaint, the plaintiff asks the court to set aside the transaction. The registrant believes the Complaint is without merit, contains numerous factual errors, and the registrant is confident that it will prevail.

In Other U.S. News…

Simulations Plus (NASDAQ:SLP) ($6.71) – designs and develops pharmaceutical simulation software for use in the pharmaceutical research and in the education of pharmacy and medical students.  Announced preliminary revenues for its Q4 and full year 2014.

  • Preliminary revenues increased 15.1% to $1.805 million, compared to $1.568 million in 4QFY13
  • Preliminary revenues increased 11.9% to $11.268 million, compared to $10.071 million in FY2013

Quotes from management:

“This new record for fourth fiscal quarter revenues is likely to be eclipsed by a substantial amount going forward as a result of our just-completed acquisition of Cognigen Corporation. In addition to the sustained growth of Simulations Plus over more than 10 years, we will now be adding revenues from our Cognigen division. Needless to say, this is an exciting time for both Simulations Plus and Cognigen.”

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


The GeoTeam