GEO Investing

Call(s) to Action: None

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

  • ChinaHybrids
    • VNET ($18.21; marked up pre market) – Announced that Windows Azure services’ WebDirect payment services are now available to all customers in China.
    • GAME ($6.58) – Reported a larger loss on down revenues for Q2 2014.  Investors should note that GAME had recently announced a going private offer of $6.90 per share.
    • HPJ ($7.71) – Announced collaboration with Energous Corporation (WATT) for developing batteries with wire-free charging technology.  (We mentioned on 9/11/2014 when WATT had announced the news.)
    • LITB ($5.67; marked up pre market) – Raised Q3 2014 revenue guidance to be between $94 to $96 million from previously announce revenue guidance of $92 to $94 million.
  • U.S. News
    • NAII ($5.19; marked up pre market) – Reported strong Q4 2014 results.  Reported non-GAAP EPS of $0.21 vs $0.09 in the prior year on 26% sales increase.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the radar PFHO ($45.00) – Bullish Seeking Alpha article suggest recent pullback could be good buying opportunity. “Confusion Leads To Pacific Health Care Organization Sell-Off And Opportunity”
    • GeoBargain on the radar IG ($8.80) – Oppenheimer reiterated IG with “outperform” rating and raised price target to $10.00 from $8.00.

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

Disclosure: Long IG, PFHO, HPJ ; 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
Shanda Games (NASDAQ:GAME) $6.55 n/a $0.20* $0.32*

* denotes non-GAAP; ** Pre-market

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

In Other News…

21 Vianet Group(NASDAQ:VNET) ($18.21) – provides carrier-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small- to mid-sized enterprises in the People’s Republic of China. VNET announced:

Windows Azure services’ WebDirect payment services are now available to all customers in China.

Customers can purchase public cloud services at international standards directly from the 21Vianet official website. In contrast to traditional offline purchase models, the self-serviced WebDirect model will greatly simplify the contract signing, purchasing, and payment processes. Customers can start using the cloud services as soon as payments are accepted. It will be easier and less costly for small & medium enterprises (SMEs), startups, and developers to adopt public cloud services. The “One RMB Trial” promotion (terms and conditions apply) allows new customers to enjoy a comprehensive public cloud Windows Azure services package for one month, typically valued at RMB2,000.

Mr. George Zhiqing Yan, General Manager of Marketing and Operations for Microsoft Greater China, said,

“Since Windows Azure’s official launch on March 26, 2014, we have made great progress, exceeding our expectations with the speed and magnitude in which our users have grown. We have always been committed to introducing the world’s leading technology and services, and now users in China can also experience public cloud services at international standards. Over the past few months, working with 21Vianet, we have been strengthening the speed and frequency of updates for our public cloud functions and services, further improving our users’ experience. WebDirect’s rollout will substantially simplify the process of implementing public cloud services, allowing SMEs, startups and developers to experience the online payment, instant deployment, pay-as-you-go way of purchase of Windows Azure and helping them face the IT challenges in this age of cloud computing.”

Mr. Satya Nadella, CEO of Microsoft, Mr. Ralph Haupter, Corporate Vice President and CEO of Microsoft Greater China, and Mr. Josh Chen, Chairman and CEO of 21Vianet all attended the launch event together. Mr. Josh Chen, Chairman and CEO of 21Vianet, stated:

“We are extremely excited to achieve another great milestone in the collaboration between 21Vianet and Microsoft. The WebDirect online payment portal will significantly reduce customers’ IT costs and enable them to more easily and efficiently deal with any difficult challenges in the cloud era.”

Highpower Intl (NASDAQ:HPJ) ($7.71) — a developer, manufacturer, and marketer of lithium and nickel-metal hydride (Ni-MH) rechargeable batteries, and a battery management systems and battery recycling provider, today announced:

it will collaborate with Energous Corporation, the developer of WattUp, a disruptive wire-free charging technology for electronic devices that provides power at a distance with complete mobility under full software control, to develop batteries with Energous’ wire-free charging technologies, which was already announced by Energous earlier.

“Highpower is committed to cutting-edge technologies,” said Terry Guo, Vice President of Highpower International. “We expect the collaboration of Highpower and Energous on the wire-free charging technologies to yield the industry’s most exciting power sources to date — and to deliver advanced products differentiating from others in today’s market.”

“Right now, battery charging methods are one of the limiting factors in the use of smartphones, wearables and IoT devices,” said Stephen R. Rizzone, CEO of Energous Corporation. “WattUp-enabled Highpower batteries will deliver the freedom to charge without wires and will therefore make an impact on the whole battery industry.”

Lightinthebox Holding Co Ltd (NYSE:LITB) ($5.67; marked up pre market) – a global online retail company that delivers products directly to consumers around the world, today announced:

it is raising net revenues guidance for the third quarter of 2014 to be between US$94 million and US$96 million from the previously announced net revenues guidance of US$92 million to US$94 million. This represents a year-over-year increase of 38% to 41% from the same period in 2013.

“Net revenues growth re-accelerated at a faster pace than we expected during the third quarter of 2014 as we increasingly benefit from the strategic plan we have been implementing over the past few quarters. We will continue to focus on executing our strategy as we work to enhance customer experience. We look forward to updating the market on the progress we have made during our third quarter 2014 earnings conference call,” commented Mr. Alan Guo, Chairman and CEO of LightInTheBox.

On the U.S. Front…

Notable U.S. Earnings…

Stock Price** EPS Estimate Reported EPS Prior Year Reported EPS
Natural Alternatives (NASDAQ:NAII) $6.00 n/a $0.21* $0.09*

* denotes non-GAAP; ** Pre-market

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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