Regal Assets Analytics

GEO Investing
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Call(s) to Action:  Shorting QUNR; Buying VIMC. See below

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

  • ChinaHybrid News not released in U.S
    • QUNR ($31.62) – According to TechWeb, the leading online travel company in China, International (CTRP) delisted its hotel products from QUNR. CTRP claims that QUNR utilized certain technology to generate more exposures and result priority rankings, and the company thinks these search results are against fair competition.
    • VIMC ($5.40) – According to ZhongGuanCun Online, VIMC reached letter of intent with LangChao, an IT services provider in China, for the surveillance and security protection business. The cooperation has started on the video surveillance project in Shanxi Province. We are not sure about the exact date for this agreement, but this might be part of the reason for the stock’s recent run .
  • ChinaHybrids
    • WBAI ($34.93) – Mentioned cautiously by Muddy Waters.
    • HSOL ($2.68) Signed its second 50 MW module supply agreement with Baotou Shansheng New Energy.   Company see’s further momentum for rest of 2014 and for years to come due to Chinese government’s target for solar installations in the years to come.
    • SCOK ($2.92; marked up pre-market)Announced new underground coal project; gross profit of $30 to $45 million expected in 2015.
  • Marijuana Hype
    • KORX ($0.18) – Adding to our Cannabis screen.  Looks like possible low floater, looking into details further.

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

Disclosure: Shorting QUNR; Buying VIMC; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

Hanwha Solarone Co (NASDAQ:HSOL) ($2.68) – a top-10 global photovoltaic manufacturer of high-quality, cost-competitive solar modules, today announced:

signed its second supply agreement with Baotou Shansheng New Energy Co., Ltd. for delivery of 50 MW of Hanwha SolarOne’s PV modules. Deliveries will begin in October and are scheduled for completion by the end of November. The modules will be used in ground-mounted projects in Hohhot and Baotou, Inner Mongolia. The Company had previously announced a similar 50 MW module supply agreement with Baotou New Energy on August 9, 2014.

Mr. Jay SEO, Chief Financial Officer of Hanwha SolarOne and head of Hanwha SolarOne’s China business commented,

“We are pleased to strengthen our relationship with Baotou New Energy in developing renewable energy sources in northern China. We have now signed 100 MW in module supply agreements with deliveries taking place between August and November this year, alone representing approximately a four-fold increase in volumes shipped to China during the first half of 2014.We anticipate further momentum in our China business as the Chinese government has formalized its 13 GW target for solar installations in 2014 and outlined last week some critical steps to support distributed generation. These measures should have a meaningful impact on market demand in China beginning no later than the fourth quarter and have a lasting effect on demand for years to come.”

Sinocoking Coal & Coke (NASDAQ:SCOK)($2.92; marked up pre-market) – a vertically-integrated coal and coke processor, today  signed:

exclusive agreement with both the Institute of Process Engineering of the Chinese Academy of Sciences and the North China Institute of Science and Technology to refine and implement a technology that will be used, beginning next month, to convert the 21 million tons of coal at four SinoCoking underground mines into syngas, a clean burning fuel.

The technology will accomplish this conversion without releasing meaningful levels of carbon dioxide or other greenhouse gases above ground, said SinoCoking.

Located in Henan Province, these mines have been shut down for three years due to Chinese government-mandated mine consolidation guidelines. Now, however, these properties can be reactivated and their resources utilized in an environmentally friendly manner, said the company.

The first phase of the project, which will cost approximately $18 million and be funded primarily from SinoCoking’s cash reserves, is expected to be completed in February 2015 and yield a combined syngas output of 60,000 cubic meters per hour. This output will produce incremental gross profit in 2015 of from $30 to $45 million, said SinoCoking.

Marijuana Hype…

Kore Resources Inc (Unknown:KORX) ($0.18) – Adding to our Cannabis screen.  We need to look at reverse merger details more closely, but at first glance it seems the company has only 25 million shares outstanding.  The company intendsto be among the first companies with the ability to serve the cannabis market from the digital technology spectrum.

For a list of stocks we are tracking in the Marijuana space please go here.

**Please note that our decision to buy selected marijuana names is just based on our desire to ride the hype surrounding the sector and not an endorsement of their operations.  In the long-term, most of the marijuana stocks being hyped will likely come crashing down.  Also note that on 3/17/2014 we  mentioned that we have liquidated most of our marijuana holdings.

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


The GeoTeam