Call(s) to Action: VIMC

Long:

VIMC – After successfully trading VIMC per our last bullish call on the stock on 9/9/2014 , we are looking at shares as a trade opportunity again, especially on pullbacks. Latest news from China  (not released in the U.S.) could propel another round of momentum and could create support for the stock  on  pullbacks. News:

A security broker named Xingye Securities in China has engaged with management of VIMC to host investor conferences between 09/23 and 09/25 in cities of Shenzhen, Shanghai, and Beijing, China. VIMC’s EPS is estimated to grow at the annual compounded rate of 126% in next 3 years.

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

  • ChinaHybrid News not released in U.S
    • See VIMC above
  • ChinaHybrids
    • CHRM ($4.63) – Announced shareholder approval of previously announced going private transaction of $4.70.
    • JST ($6.95) – Announced that it has received a preliminary, non-binding proposal of a going private transaction for $8.80 per common share.
  • U.S. News
    • SYNL ($18.09) – Back on our radar.  The company has a GPR of 4,  nice chart, and a new contract could make already impressive analyst EPS estimates conservative.
  • GeoBargains/GeoBargains on the Radar
    • Ex-GeoBargain TAYD ($9.49) – back on our radar as backlog has nearly doubled in the past 6 months.  We will look to buy on pullbacks.
    • Ex-GeoBargain on the radar OCC back is piquing our curiosity due to restructuring initiatives.
  • Tier 1 Pinks
    • CURN ($14.78) – Organic growth and recent acquisitions have led to strong Q3 2014 results and the stock hitting new highs.  We will begin to track due to a bullish Q3 2014 conference call where management stated they “are just getting started” and “firing on all cylinders.”
    • BWTL ($1.50) – EPS performance over past 6 months has been impressive.  The company has not issued any press releases regarding its financial progress which could create information opportunity if our due diligence of this reverse merged company does not reveal any red flags.
  • Speculative Plays
    • VNRX ($4.00) –      Watching closely as a high risk speculative play or possible pump and dump due to recent strong run.   The stock has more than doubled in two weeks based on positive cancer detection through blood testing.
  • Pump and Dumps
    • TDNT ($0.85) – A recently signed license agreement with a recognizable name may make TDNT a likely candidate for a pump campaign.
  • Marijuana Hype
    • Adding SUPID ($6.00) to our Cannabis screen. The Company plans to develop and manufacture a cannabidiol (CBD)-based product for initial distribution to healthcare practitioners

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…

Charm Communications (NASDAQ:CHRM) ($4.63) – a leading advertising agency in China, announced:

at an extraordinary general meeting held today, the Company’s shareholders voted in favor of the proposal to authorize and approve the previously announced agreement and plan of merger dated May 19, 2014 (as amended on May 23, 2014 and June 20, 2014, the “merger agreement”) among Engadin Parent Limited (“Parent”), Engadin Merger Limited (“Merger Sub”) and the Company and the plan of merger between Merger Sub and the Company required to be filed with the Registrar of Companies of the Cayman Islands (such plan of merger being substantially in the form attached as Appendix 1 to the merger agreement), pursuant to which Merger Sub will be merged with and into the Company with the Company continuing as the surviving corporation (the “merger”) and the transactions contemplated by the merger agreement, including the merger. Approximately 84% of the Company’s total outstanding ordinary shares (including ordinary shares represented by the Company’s American depositary shares (“ADSs”)) voted in person or by proxy at today’s extraordinary general meeting. Of the ordinary shares voted in person or by proxy at the extraordinary general meeting, approximately 72% were voted in favor of the proposal to approve the merger agreement and the plan of merger and the transactions contemplated by the merger agreement, including the merger; and approximately 72% were voted in favor of the proposal to authorize the directors of the Company to do all things necessary to give effect to the merger agreement.

Jinpan Intl (NASDAQ:JST) ($6.95) – a leading designer, manufacturer, and distributor of cast resin transformers, today announced:

its Board of Directors has received a preliminary, non-binding proposal letter dated September 21, 2014 from Li Zhiyuan, the Company’s Chairman of the Board of Directors, President, and Chief Executive Officer and FNOF E&M Investment Limited (collectively, with Mr. Li, the “Buyer Parties”), to acquire all of the outstanding common shares of the Company not currently owned by the Buyer Parties in a going private transaction for $8.80 per common share, subject to certain conditions.

According to the proposal letter, an acquisition vehicle will be formed for the purpose of completing the acquisition, and the acquisition is intended to be financed through a combination of debt and equity capital. Equity financing will be provided by the Buyer Parties in the form of cash. Debt financing will be primarily provided by third party financial institutions.  Please refer to the enclosed Exhibit A for a copy of the proposal letter.

The Company expects that its board of directors will form a special committee consisting of independent directors (the “Independent Committee”) to consider this proposal. The Company also expects that the Independent Committee will retain a financial advisor and legal counsel to assist it in its work. The Company cautions its shareholders and others considering trading in its securities that the board just received the non-binding proposal and no decision has been made with respect to the Company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

On the U.S. Front…

GeoBargain/Specials…

Taylor Devices (NASDAQ:TAYD) (9.49) – Ex-GeoBargain TAYD designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in various types of machinery, equipment, and structures.  TAYD is back on our radar as backlog has nearly doubled in the past 6 months.  As of Q4 2014 backlog was $24.6 million up from $13.1 in prior year and up from $16.5 from Q2 2014.  We will look to buy on pullbacks.

Optical Cable (NASDAQ:OCC) ($4.75) – Ex-GeoBargain on the radar OCC manufactures and sells fiber optic and copper data communications cabling and connectivity solutions for the enterprise market in the United States and internationally.   OCC is back  piquing our curiosity due to restructuring initiatives.    Per Q3 2014 earnings release:

As part of OCC’s ongoing efforts to further enhance shareholder value, the Company took steps to streamline operations by eliminating a number of positions at the end of the third quarter of fiscal year 2014.  These workforce reductions, together with other positions eliminated earlier in fiscal year 2014, are expected to result in total annual cost savings of approximately $1.0 million.  The Company’s reorganization initiative resulted in nonrecurring expenses totaling $138,000 during the third quarter of fiscal year 2014, in addition to similar expenses totaling $226,000 already recognized during the first half of fiscal year 2014.

Tier One Pinks…

Currency Exchange (OOTC:CURN) ($14.78) – provides retail and wholesale currency exchange, and related products and services in North America.  Strong Q3 2014 results and bullish conference call have us tracking CURN:

  • Revenues increased 80% to $6.8 million for the three month period ended July 31, 2014 from $3.8 million for the three month period ended June 30, 2013
  • Q3 2014 Non-GAAP EPS of $0.27 vs $0.18 in the prior year

Conference call summary:

  • Q3 is generally strongest Q of the year and the quarter benefited from change in fiscal year; Q3 now includes July which is generally the strongest month for the company.
  • Will continue its expansion plans; The Company added six company owned branches and 124 new wholesale relationships representing over 3,200 locations since June 30, 2013.
  • Recent acquisition of Texas branch going extremely well
  • Company stated as of 9 months ended june 2014 the company has exceeded a billion in exchange volumes vs 800 million in full year 2013.  Anticipates 2014 total volumes to be near 1.5 billion.
  • Management used phrases such as “just getting started” and “firing on all cylinders” when discussing current business operations.

Speculative Plays…

Volitionrx Ltd (OOTC:VNRX) ($4.00) – is a life sciences company focused on developing blood-based diagnostic tests for different types of cancer.  Watching closely as a high risk speculative play or possible pump and dump due to recent strong run.   The stock has more than doubled in two weeks based on positive cancer detection through blood testing.  On 9/11/2014 the company announced:

topline data from its 4,800-subject colorectal cancer trial at Hvidovre Hospital, Copenhagen, Denmark. Mr. Reynolds will present data from an initial representative 938-subject sample, demonstrating that the Company is able to correctly diagnose 84% of colorectal cancers, including early-stage cancers, using its NuQ® blood-based diagnostic platform.

Pump and Dumps…

Trident Brands Inc (OOTC:TDNT) ($0.85) – an emerging growth company focused on identifying and building brands in dynamic consumer segments.  A recently signed license agreement with a recognizable name may make TDNT a likely candidate for a pump campaign.  Reasons for tracking:

  • recently signed a 15 year licensing agreement with Everlast, allowing the company to manufacture and sell nutritional/food products.
  • Everlast is a recognizable name that has been around since 1910 which could be the motivation of a pump campaign
  • currently, the company has tight share capital structure with only 28 million outstanding shares

Marijuana Hype…

Cannalink (OOTC:SUPID) ($6.00) – Adding to our Cannabis screen.  On 9/15/2014 the company announced:

that it has effected a change of name of the Company from Superwire, Inc. to Cannalink, Inc. and a 1 for 50 reverse split. The two corporate actions were approved by FINRA effective September 10, 2014.

The Company maintains its headquarters in San Diego, California and is managed by its new Chairman and Chief Executive Officer, Robert L. Plomgren. Commenting on the name change and reverse split Mr. Plomgren stated, “The change of name to Cannalink, Inc. reflects the Company’s intention to enter the cannabis arena in two significant ways. First, the Company plans to develop and manufacture a cannabidiol (CBD)-based product for initial distribution to healthcare practitioners. In furtherance of this strategy, the Company completed the acquisition of the MigraSpray product line and assets for $300,000. MigraSpray is a sublingually administered formula for the effective treatment and prevention of migraine headaches, which is distributed through approximately 5,000 healthcare practitioners. The Company plans to use the MigraSpray technology to develop its CBD-based product and to initially market the product through MigraSpray’s practitioner distribution platform. Secondly, the Company intends to offer investment banking, merchant banking and business consulting services to emerging companies in the medical marijuana and industrial hemp sector. The reverse split was necessary to position the Company to accomplish an effective recapitalization.

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.

Sincerely,

The GeoTeam