GEO Investing

Call(s) to Action: MHH, VOXX

GeoBargain MHH ($10.60) – Unwinding some of our position. We are still long term bullish on the company but somewhat concerned about the next couple quarters’ performance as the company works through recruitment challenges it faced in Q2 2014.

VOXX ($9.45) – Shares pulled back sharply late in the day yesterday, possibly due to reports that the launch of 360Fly would be delayed by 30 days.  As long as the delays do not continue and no problems arise with the 360Fly product we see any further pullback as opportunity to add to our long position.

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

  • ChinaHybrids
    • LLEN ($0.11) – Ex-CEO Dickson Lee pleads guilty to fraud. Lee admitted arranging for the cash-strapped company to illicitly sell about 730,000 shares by secretly issuing L&L stock to China-based individuals.  Please recall that on 1/13/2012, the GeoTeam published the first in a  series of reports dealing with the misrepresentation of assets by LLEN and were integral in getting LLEN halted and delisted.
    • AUTCF ($14.00) – Reported Q2 2014 results.  Reported flat EPS on 47% sales growth.
    • TOUR ($18.02)Announced partnership with Three Gorges Project to be the exclusive online partner for making reservation to visit the Three Gorges Dam.
    • PME (2.17) Declared first quarterly cash dividend of $0.01 per share.
  • U.S. News
    • ELMD ($1.39; marked up pre market) – Reported strong Q4 2014 results ;Q4 2014 EPS of $0.04 vs a loss of $0.05 in the prior year on 14.8% sales growth.   Commentary was overall bullish but still suggest lumpiness in upcoming quarters could occur.

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

Disclosure: Long VOXX, MHH ; 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
Autochina Intl Ord(OOTC:AUTCF) $14.00 n/a $0.18 $0.18

* denotes non-GAAP; ** Pre-market

Please see our ChinaHybrid June 2014 quarter earnings screen (password GEO2014) for select companies that have reported earnings.

Tuniu (NASDAQ:TOUR) ($18.02) – a leading online leisure travel company in China, today announced,

it has reached a strategic agreement with China Three Gorges Project (“Three Gorges”), a subsidiary of China Three Gorges Corporation, to be the exclusive online partner for making reservations to visit the Three Gorges Dam.

The new collaboration will enable Chinese travelers to make reservations to visit the Three Gorges Dam via Tuniu’s integrated online customer service platform including its website and mobile app. As part of the partnership, Tuniu and Three Gorges will launch a joint targeted marketing campaign to promote the new offering to millions of Chinese leisure travelers.

“As the world’s largest hydro-power station, the Three Gorges Dam is renowned for its scale and engineering and is a unique and popular tourist site in China,” said Mr. Donald Yu, Tuniu’s co-founder and Chief Executive Officer. “We are delighted to form this exclusive partnership with Three Gorges, which will further enhance Tuniu’s rich product and service offerings.”

“Tuniu’s strategy of building strong upstream relationships with local tourism companies across China enables us to offer the most exciting exclusive travel offerings and the best customer service, further differentiating Tuniu as the leading destination to book leisure travel online.”

Pingtan Marine Enterprises Ltd (NASDAQ:PME) ($2.17) – a global fishing company based in the People’s Republic of China (PRC), today announced,

its Board of Directors has decided that the Company will begin paying a quarterly dividend of $0.01 per share.  The Board has therefore declared a cash dividend of $0.01 per share of common stock outstanding, payable in cash on or about November 14, 2014 to shareholders of record on October 6, 2014.

Mr. Xinrong Zhuo, Chairman and CEO of the Company, stated,

“We have been very pleased with Pingtan’s growth over the past year.  We want to strike a balance between providing our shareholders ongoing cash returns and using our capital to support the growth opportunities we have in the market. We think this dividend, which we intend to issue quarterly, balances those considerations.  We are supported by a strong balance sheet, and look forward to continuing profitable growth in the coming year.”

On the U.S. Front…

Electromed (AMEX:ELMD) ($1.39) – develops, manufactures, markets, and sells airway clearance therapy products.  ELMD reported strong Q4 2014 results:

  • Net revenues for the fourth quarter of fiscal 2014 rose 14.8% to $4.6 million, compared with $4.0 million in the fourth quarter of fiscal 2013.
  • Net income was $290,000, or $0.04 per basic and diluted share, compared with a net loss of $416,000, or $0.05 per basic and diluted share, in the same quarter in the prior fiscal year.

Quotes from management:

“We finished the year well and although we may not have a perfect trend line of profitability and revenue growth going forward, I have increased confidence we will carry that momentum into fiscal 2015. The team is energized, the market is responding to our offerings and we are looking forward to building on the progress we have made.”

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


The GeoTeam

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.