GEO Investing

Call(s) to Action: None

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

  • ChinaHybrids
    • OSN ($0.90)Reported strong Q2 2014 results; Q2 2014 EPS of $0.07 vs $0.04 in the prior year on 49% sales growth.
    • CNIT ($3.99) Announced it has installed 23 cloud-based new media terminals at China’s largest high-speed railway station.
    • DATE ($5.68)Declared a special cash dividend of $0.67 and offers bullish commentary on business operations.
    • HOLI ($22.75) –  Announced it has signed two thermal power plant contracts.
    • RCON ($5.00) –     Reported strong full year 2014 results;  FY 2014 EPS of $0.19 vs $0.08 in the prior year on 22% sales growth.  However, Q4 2014 EPS decreased to a loss of $0.11 vs loss of $0.05.
    • LAS ($2.18) –  Reported Q2 2014 results; EPS decreased to $0.03 vs $0.06 in the prior year on 8% sales growth.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the radar UVIC ($7.15) Reported a 220% increase in Q4 2014 EPS on 7% sales growth; Q4 2014 EPS of $0.16 vs $0.05 in the prior year, fueled by an increase in royalty income from Bausch + Lomb.
  • Marijuana Hype
    • Adding ETST ($2.95) to our cannabis screen.  We have received a promotional email touting its CBD (cannabidiol) market opportunity as it tries to ride the hype of GWPH.

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

Disclosure: Long UVIC; 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
Reconstruction Tech(NASDAQ:RCON) $4.96 n/a -$0.11* -$0.05*
Ossen Innovation Co(NASDAQ:OSN) $1.23 n/a $0.07* $0.03*
Lentuo Intl(NYSE:LAS) $1.99 n/a $0.03 $0.06

* 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…

China Information(NASDAQ:CNIT) ($3.99) — a leading provider of Internet-based platforms, products and services in the country, today announced:

it has installed 23 cloud-based new media terminals at China’s largest high-speed railway station — Beijing South Railway Station. The installation is done through a leasing agreement with a leading advertising agency in China. Under the agreement, the advertising agency will pay the Company recurring monthly fees that include terminal rental and platform management fees.

Through the Company’s Cloud-App-Terminal (CAT) transportation platform, the advertising agency will be able to manage all of its ads contents on the CNIT new media terminals remotely and wirelessly. New media terminals display high-definition and multimedia ads and public information such as train schedule and gate assignments on a real-time basis.

Beijing South Railway Station is estimated to handle over 150 million passengers each year. The Company’s new media terminals, including DIY new media terminals and double-sided new media terminals, are especially engineered to attract attention at high-traffic venues from airports to railway stations. Intl (NASDAQ:DATE) ($5.68) – operator of the largest online dating platform in China, today announced:

its Board of Directors has declared a special one-time cash dividend of US$0.4467 per ordinary share, or US$0.67 per American Depositary Share (“ADS”). The total amount of cash to be distributed for the special dividend is expected to be approximately US$20 million.

“Our sustainable business model continues to yield solid financial results as we leverage our massive registered user base which recently surpassed 110 million,” commented Mr. Wu Linguang, Chief Executive Officer of Jiayuan. “In particular, the success of our personalized matchmaking business has generated substantial free cash flow, which combined with our current cash position exceeds the Company’s short-term capex needs allowing us to return value to shareholders through this special one-time cash dividend. We are confident in the health of our underlying business and are committed to making the investments necessary in our business to drive stronger growth and solidify our position as the industry leader in online dating.”

Hollysys Automation (NASDAQ:HOLI) ($22.75) – a leading provider of automation and control technologies and applications in China, announced:

it successfully signed the contract to provide its proprietary Distributed Control System (“DCS”) for 2800MW power generating units in Liaoning Suizhong Power Plant (Suizhong Power Plant) for its DCS reconstruction.

Suizhong Power Plant was launched into operation in 2000, and it was the largest thermal power plant in Asia at that time and was initially equipped with a foreign player’s control technology. This project has complex controlling requirements with 36,000 controlling points, and it can be ranked as one of the largest and most complex DCS reconstruction project in coal fire power industry in China.

Under the competition with well-known multinational competitors, Hollysys quickly formed the total solution plan for the DCS reconstruction for Suizhong Power Plant and they were satisfied with the Company’s overall performance. Hollysys won the contract through its advanced technology, industry expertise, solution capabilities and continuing effort through teamwork. This is a significant breakthrough for Hollysys in DCS reconstruction sector in the GW level power plant.

Hollysys’ management commented, “We are very proud of the contract win to provide our proprietary DCS to the largest scale of power generating units DCS reconstruction project in China, which evidenced our leading technology and capability again. We will continue to restructure our marketing sales force and organize industry professional teams to further penetrate the high-end segments of the industrial automation market, and we have gradually achieved the fruitful results. Going into the future, we will continue to capture our fair share in the high-end market and intensify our sales efforts in the low to mid-end market to further enhance our market position, and create value for our shareholders.


Unilens Vision Inc (OOTC:UVIC) ($7.15) –  manufactures, markets, distributes, and licenses specialty optical lens products.  Reported strong Q4 2014 results:

  • Total revenue in the fourth quarter of FY2014 improved 7.7% to $2,212,408 compared with $2,053,402 in the final three months of FY2013.
  • Diluted earnings per share increased 220% in the FY2014 fourth quarter to $0.16, compared with $0.05 in the prior-year period.

Quotes from management:

“Our fourth quarter reflects a continued acceleration in royalty income from our licensee Bausch + Lomb that began in the second quarter of Fiscal 2014,” noted Michael Pecora, Chief Executive Officer of Unilens Vision Inc. “The 28% increase in royalty income in the fourth quarter outpaced the 13% increase in the third quarter and the 0.7% improvement in the second quarter. For the year as a whole, royalty income rose over 7%, which represented the first full year of royalty income growth since Fiscal 2010. We attribute the acceleration in royalty income to Bausch + Lomb’s October 2013 launch of its PureVision2® for Presbyopia multifocal lens which features the next generation multifocal design licensed from Unilens.”

“Fourth quarter sales of our branded specialty contact lens products increased for the fifth consecutive quarter,” continued Pecora, “primarily due to continued robust growth of our C-Vue® Advanced custom lens business, as well as initial sales associated with the June 2014 launch of our, C-Vue® ADDvantageâ„¢ Multifocal for Presbyopia. We anticipate that our C-Vue ADDvantage multifocal which incorporates our next generation multifocal technology will continue to contribute to the Company’s future revenue and earnings growth.”

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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