GEO Investing

Call(s) to Action: Bearish idea coming later this morning.  Please stay tuned for follow up email.

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

  • ChinaHybrids
    • CNIT ($4.40) – Acquired a cloud platform company to accelerate growth in cloud services.
    • JRJC ($7.11) – Announced new partnership with Zhongshan Securities to integrate a new web based trading platform.
    • EDS ($1.62) – Provided update on going private transaction, extends termination date.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain MOBS ($0.41) – Expands into Europe.  MOBS will be creating a wholly-owned subsidiary in Spain with new offices scheduled to open on November 1, 2014.

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

Disclosure: Long MOBS; Other Long Positions; Other Short Positions; Pump & Dump Positions (Password GEO2014)

Summary of general highlights:

On the Asian Front…

China Information(NASDAQ:CNIT) ($4.40) — a leading provider of Internet-based platforms, products and services in China, today announced;

the Company’s variable interest entity, iASPEC Geo Information Technology Co., Ltd. and Shenzhen Yunchao Software Internet Co., Ltd. (“Yunchao”) entered into an Equity Transfer Agreement (the “Agreement”) dated September 16, 2014, to acquire 100% equity interest of Shenzhen Biznest Internet Software Co., Ltd. (“Biznest”) from Yunchao.

The total consideration of the transaction is approximately $15 million, consisting of approximately $7.5 million to be paid in cash and 1,543,455 ordinary shares to be issued by the Company. The transaction consideration was calculated based upon the value that is 10 times of Biznest’s projected net income of 2014. According to the Agreement, both the cash consideration and the ordinary shares will be delivered within six months from the date of the Agreement. The Company believes that it has sufficient capital resources to pay the cash consideration as well as its day-to-day working capital.

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

“We are very excited about this acquisition as Biznest is critical to our new CAT business model, and we believe that our firepower in cloud area will be significantly strengthened. Biznest is a leading innovator in cloud-based hardware and software solutions with a robust engineering prowess and large patent portfolio. We are excited to bring their superior technical knowhow in-house and create better cloud-based solutions for our diverse customers. Similar to Tencent’s WeChat and Alibaba’s Taobao, our CAT model is revolutionary and disruptive to the incumbent media industry. As our software and hardware infrastructures are being completed, we are going full force to roll out our cloud services and monetize in the large addressable market. We look forward to leveraging our CAT eco-system to win a series of new contracts and generate strong recurring revenue and profits in the foreseeable future.”

China Finance Online(NASDAQ:JRJC)($7.11) – a leading web-based financial services company that provides Chinese retail investors online access to securities, commodities, and wealth management products, today announced:

it has entered into a strategic partnership agreement with Zhongshan Securities Co., Limited (“Zhongshan Securities”), to integrate with China Finance Online’s newly-launched web-based trading platform, “Securities Master,” or “Zhengquantong,” with Zhongshan Securities’ trading and settlement system. Along with the Company’s previous partnership with CITIC Securities, Co., Ltd. (SHA: 600030), this partnership will allow China Finance Online to offer a competitive commission rate to investors, strengthen its platform’s online trading capabilities and further expand its broad user base.

China Finance Online’s new partnership with Zhongshan Securities, which is one of the oldest and respected securities firms in China, will allow customers to easily create new trading accounts and offer highly competitive commission rates, which can be as low as 0.025% for new trading accounts. Zhongshan Securities will also be able to provide users with additional services such as access to microfinance loans and several other products. As a key part of the Company’s new strategy for “Securities Master,” China Finance Online aims to continue to expand its partnerships with more securities firms, enabling it to offer an integrated financial platform with more comprehensive products and services to its broadened base of retail investors.

“With the recently announced government deregulation in the finance industry, investors in China will be able to open multiple trading accounts at multiple brokerages, giving them great flexibility in making financial decisions,” stated Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online. “By continuing to demonstrate our industry expertise and provide comprehensive financial products on our integrated financial platform, we firmly believe that we are building a solid ecosystem that will continue to attract new users and strengthen our foundation for future monetization.”

Exceed (NASDAQ:EDS) ($1.62) – one of the leading domestic sportswear brands in China, today announced:

the special committee of the board of directors of the Company is in discussions with Mr. Shuipan Lin (“Mr. Lin”), the Company’s Chairman and Chief Executive Officer, regarding a proposed amendment to the Agreement and Plan of Merger (the “Merger Agreement”), dated December 2, 2013, by and among the Company, Pan Long Company Limited (“Parent”), an exempted company with limited liability incorporated under the laws of the Cayman Islands and wholly owned by Mr. Lin, and Pan Long Investment Holdings Limited, a wholly owned subsidiary of Parent.

Under the terms of the Merger Agreement, either the Company or the Parent may terminate the Merger Agreement without payment of a termination fee if the merger is not consummated by the termination date of September 2, 2014 (the “Termination Date”).  As of the date hereof, the Merger Agreement has not been terminated by either party.  The proposed amendment would extend the Termination Date.  The Company will provide a further update with respect to the proposed amendment and the timing of a reconvened shareholder meeting to approve the Merger Agreement once discussions with respect to the proposed amendment have been finalized and such amendment has been executed.

On the U.S. Front…


B- Scada (OOTC:MOBS) ($0.41) – GeoBargain MOBS develops software products for the visualization and monitoring of real time data in heavy industry worldwide.   Announced:

they are joining forces with Coneti Consultores to expand B-Scada’s presence in Europe. Coneti is a systems integration, consulting firm and premier reseller of B-Scada solutions. B-Scada will be creating a wholly-owned subsidiary in Spain with new offices scheduled to open on November 1st, 2014.

B-Scada will now offer our products, services and support in Spanish and Portuguese, and we will have a local presence in Europe as well as the ability to expand our products into the European Union and Africa. By bringing Coneti’s experienced management, sales and development staff on board to build the Spanish office, we ensure customers will receive the same expert consulting services, training, and technical assistance they’ve come to expect from B-Scada.

“B-Scada and Coneti share the goal of providing the best possible solutions and service to our customers,” said Ron DeSerranno, CEO. “We’ve had a great working relationship with Coneti over the years and it’s exciting for us to take it to the next level.”

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


The GeoTeam

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