GEO Investing

Call(s) to Action: None

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

  • ChinaHybrid News not released in U.S
    • VIMC ($4.44) – There is a news article about VIMC and its potential big gain for the new China’s security and protection standard (SVAC: Surveillance Video and Audio Coding). The company’s CFO says the government is researching on promoting this standard.
  • ChinaHybrids
    • MOBI ($7.99) announced repurchase of 16 million common shares (or 2 million ADS) at current market prices from Sequoia Capital.
    • LITB ($6.17)announced the settlement of class action lawsuit.
  • U.S. News
    • HURC ($33.51; marked up pre-market) – Reported strong Q3 2014 results
      • Revenues of $55.3 million vs $45.1 in the prior year
      • EPS of $0.66 vs $0.13 in the prior year
    • TASR ($17.55) – NYC police officers to start using body cameras in a pilot program. TASR product one of two companies  potentially be  selected for the program.
  • Tier 1 Pinks
    • ELXS ($13.00) –  Taking a closer look at Tier 1 Pink ELXS , a   stock we owned in the past that performed well for our portfolio.  The stock is up 36% since it reported strong Q2 2014 results  on 8/26/2014 via
      • Q2 2014 revenues of $19.9 million vs $16.6 million in the prior year
      • Q2 2014 EPS of $0.56 vs $0.35 in the prior year
      • Commentary about future outlook is limited

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

Disclosure: No positions ; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

Sky-Mobi(NASDAQ:MOBI) ($7.99) – a leading mobile application platform in China, today announced :

it has entered into a share purchase agreement to repurchase from its shareholders, Sequoia Capital China Partners Fund II, L.P., Sequoia Capital China Principals Fund II, L.P. and Sequoia Capital China II, L.P., an aggregate of 16,000,000 common shares of par value US$0.00005 per share at a purchase price of US$0.985 per share. Each ADS represents eight common shares of the Company. The share repurchase transaction is expected to be closed within 20 business days. The share repurchase transaction is not part of the US$20 million share repurchase program announced on May 30, 2014. The Company may, from time to time, repurchase shares on the open market, in negotiated transactions or otherwise in compliance with all of the conditions of Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, pursuant to the US$20 million share repurchase program.

Lightinthebox Holding Co Ltd (NYSE:LITB) ($6.17) – a global online retail company that delivers products directly to consumers around the world.  The company settled a class action lawsuit:

As previously disclosed, on August 27, 2013, the Company was named as a defendant in the first of three putative shareholder class action lawsuits filed in the United States District Court for the Southern District of New York. These three actions were consolidated under the master caption In re LightInTheBox Holding Co., Ltd. Securities Litigation, No. 13-cv-6016-VEC (S.D.N.Y.). On May 1, 2014, the Company filed a motion to dismiss the second amended consolidated complaint for failure to state a claim as a matter of law.

The parties have entered into the settlement prior to a decision on the Company’s motion to dismiss. According to the settlement, which remains subject to preliminary and final court approval, the Company and its insurers have agreed to contribute US$1.55 million to a settlement fund payable to certain purchasers of the American depositary shares between June 6, 2013 and August 19, 2013. In return, the lead plaintiff has agreed to dismiss all claims against the Company and all of the individual defendants.  Following final approval of the settlement by the Court, the case will not be allowed to be refiled.

On the U.S. Front…

Hurco Companies (NASDAQ:HURC) ($33.51) – is an industrial technology company that designs and produces interactive computer controls, software and computerized machine tools for the worldwide metal cutting and metal forming industry.  Reported strong Q3 2014 results:

  • Revenues of $55.3 million vs $45.1 in the prior year
  • EPS of $0.66 vs $0.13 in the prior year

Quotes from management:

“I am extremely pleased that Europe has performed so well this quarter, with marked increases in both sales and orders. Europe continues to be an extremely important market for Hurco due to the fact that it accounts for a large percentage of our high-performance machines. We are gaining traction in Asia as we continue to identify companies with more complex manufacturing needs, which is important since these companies can realize the greatest benefit from our control technologies. While activity in North America was somewhat softer than in the corresponding periods in 2013, I am confident our new machines, next generation control and new software technologies will generate excitement at the upcoming International Manufacturing Technology Show as customers seek to increase their productivity and profitability.”

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


The GeoTeam