Call(s) to Action: FABU, SBOTF, VIMC, WYY

  • Long: WYY
  • Short: None
  • Closing Position: VIMC, FABU, SBOTF

Long:

WYY ($1.68, marked up to $1.90) – Buying WYY due to significant contract win of $87.9 million.   Contract value is greater than TTM revenues and is slated to be filled within a year.

Closing Positions:

VIMC ($9.14; marked up pre market to $10.25) – Announced a $12.4 million contract win to provide SVAC-compliant video surveillance cameras and system to the Traffic Police Detachment of Taiyuan.   We will begin to lock in some gains over $10 from our most recent bullish call.

History:

  • 9/9/2014  We first mentioned we were buying VIMC in our call to action when the stock was trading at $5.40.
  • 9/17/2014 We stated  that we locked in gains of 60%.
  • 9/22/2014 We stated that we were re-entering a long position as the stock had pulled back to under $9.00.

FABU ($0.90) – We have covered the rest of our short position locking in 80+% gains.  Recall,  the GeoTeam exposed FAB’s undisclosed bond offering through the publication of two articles and that  Alfred Little Group articles exposed wide ranging misrepresentations in the FABU story.

SBOTF ($1.21) – We covered our short position locking in 30+% gains. Recall on 9/23/2014 when the stock was trading at $1.68 we released our short thesis report.

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

  • ChinaHybrids
    • EJ and SFUN China has lowered interest rates for first time home buyers in an attempt to improve the struggling housing market.  We are watching EJ and SFUN as two names that may benefit from the lowered interest rates.
    • JRJC ($8.75; marked down pre market to $8.10) – Reported Q2 2014 results; Reported Q2 2014 non-GAAP EPS of $0.01 vs a loss of $0.20 in the prior year on 171% sales growth.
    • CNET ($3.20; marked up pre market to $3.85) – Announced it has signed 12 new clients and re-signed 55 existing clients for Liansuo.com, the company’s integrated advertising and marketing services platform.
    • LAS ($1.95) – Filed a $300 million shelf registration.
    • EDU ($22.32) – Announced that the investigation by the SEC has completed and that the staff of SEC does not intend to recommend any enforcement action.
    • SCOK ($3.62) – Reported Q4 2014 non-GAAP EPS of loss of $0.04 vs a loss of $0.02 in the prior year with sales decrease of 38.6%.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the radar IG ($9.43) – Roth Capital reiterated IG with a “Buy” rating and increased its price target to $11.00 from $9.00.

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

Disclosure: Long IG, WYY ; 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
SinoCoking Coal(NASDAQ:SCOK) $4.11 n/a -$0.04* -$0.02*
China Finance Online(NASDAQ:JRJC) $7.79 n/a $0.01* -$0.20*

* 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…

Vimicro Intl (NASDAQ:VIMC) ($9.14; marked up pre market to $10.25)a leading video surveillance technology and solution provider in China announced that  its joint venture,Shanxi Zhongtianxin Science and Technology Co. Ltd. (“Zhongtianxin”), has reached an Agreement:

on Project Financing and Strategic Cooperation with CITIC Bank Taiyuan Branch, including a revolving credit line up to RMB400 million, or $65 million approximately.

Pursuant to the agreement, CITIC Bank Taiyuan Branch will provide a revolving line of credit of RMB400 million to Zhongtianxin, provided that Zhongtianxin meets CITIC’s credit line borrowing conditions.

Dr. John Deng, Vimicro’s Chairman and CEO, commented,

“We are pleased to have secured a RMB 400 million credit line, which will be of great asset for Vimicro to continue the pace of SVAC-compliant video surveillance market expansion in our stronghold provinces of Shanxi and Hebei.”

Chinanet Online Holdings (NASDAQ:CNET) ($3.20; marked up pre market to $3.85)  – a leading B2B (business to business) Internet technology company providing online-to-offline (O2O) sales channel expansion services for small and medium-sized enterprises (SMEs) and entrepreneurial management and networking services for entrepreneurs in the People’s Republic of China, announced:

that Liansuo signed a number of new clients, including Sesame St. English, after participating in the 29th Guangzhou Franchise Exhibition. The event was held in Guangzhou from September 19-21.

The Company signed 12 new clients and re-signed 55 existing clients for Liansuo.com, its integrated advertising and marketing services platform. Liansuo offers fully integrated advertising, marketing and management solutions for mid-size to large franchise businesses in China. Among the new clients are included Sesame St. English, affiliated with the Sesame Workshop in the US; October Mammy (http://www.octmami.com/), a retailer for expectant mothers with 800 stores across China; Origus (http://www.origus.com/), a pioneer of the pizza buffet concept in China, which currently operates 80 locations in Beijing; and Thankyou99 Hotel (http://www.thankyou99.com/), a franchised hotel chain with 1001 hotels around China.

New Oriental (NYSE:EDU) ($22.32) the largest provider of private educational services in China, announced:

it has been advised by the staff of the Securities and Exchange Commission (the “SEC”) that the investigation by the SEC as to the Company has been completed and that the staff does not intend to recommend any enforcement action by the SEC. The Company had initially reported the existence of this investigation in July 2012.

Mr. Michael Yu, New Oriental’s Chairman and Chief Executive Officer, said,

“I am pleased to announce that the SEC has concluded its investigation. We are gratified to share the positive news with our investors that this matter is now behind us. We will keep focusing on our business and look forward to delivering long-term value to our shareholders.”

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

Sincerely,

The GeoTeam