GEO Investing

Call(s) to Action: None

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

  • ChinaHybrids
    • CREG ($1.72) – Will be providing a full update to yesterday’s “call to action” later this morning.  Yesterday we stated it appears that an institutional owner of CREG shares, Carlyle Asia Growth Partners, intends to sell its shares in the open market.  Carlyle Asia Growth Partners owns around 12 million shares.
    • LAS ($2.96)  reported improved Q1 2014 results.
    • PWRD ($19.02) – Chart seems to be firming up, will watch closely for possible breakout.
    • SINO ($2.20) –  Announced private placement.     The Company has sold 200,000 shares of its common stock to Crystal Spring Holdings Limited, at a price per share equal to a 5% discount to the five-day period ended June 12, 2014.
  • U.S. News
    • FC ($20.60) –  Reported record revenues for Q3 2014 and expects Q4 2014 revenue, adjusted EBITDA and net income to be the strongest ever reported for a fourth quarter.
  • GeoBargains/GeoBargains on the Radar
    • GeoBargain on the radar IG ($5.31) – Secondary offering of 4.65 million shares  priced at $5.00.  As we previously stated, the purpose of the offering may likely be to step up the marketing efforts for its increasing pipeline of approved drugs.

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

Disclosure: Long IG; Short LAS, CREG ; 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
Lentuo Intl (NYSE:LAS) $3.02 n/a $0.05 -$0.05
China Jo-Jo Drugstores (NASDAQ:CJJD) $1.50 n/a -$0.23* $0.03*

* denotes non-GAAP; ** Pre-market

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

In Other News…

Perfect World Co (NASDAQ:PWRD) ($19.02) – PWRD is a leading online game developer and operator in China.  Due to prior positive due diligence, a firming chart and value on analyst EPS estimates, we are once again following the PWRD story.   Although non-GAAP EPS growth is not overly exciting, with analyst EPS estimates of $1.91 and $2.18 for fiscal 2014 and 2015, respectively, compared to 2013 non-GAAP EPS of $1.84, at a P/E of 10.0 on 2014 EPS estimates, we think its worth looking at shares due to positive due diligence in the past. We will monitor the events that could lead to upside surprise.

Sino-Global Shpping (NASDAQ:SINO) ($2.20) – an international shipping agency and logistic services provider, today announced the pricing of its previously  announced underwritten public offering.

“The Company is offering 572,000 registered shares of its common stock, without par value per share, at a price to the public of $1.76 per share. In connection with the offering, the Company has also granted the underwriter a 30-day option to purchase up to an additional 85,800 shares of common stock from the Company to cover over-allotments, if any.”

On the U.S. Front

GeoBargain/Specials…

Igi (AMEX:IG) ($5.31) – GeoBargain on the Radar IG engages in developing, manufacturing, filling, and packaging topical semi-solid and liquid products for cosmetic, cosmeceutical, and pharmaceutical customers in the United States. IG announced:

“that it has priced the underwritten public offering of 4,650,000 shares of its common stock at $5.00 per share. In addition, the company also authorized the underwriters a 30-day option to purchase up to an aggregate of 697,500 additional shares of the common stock to cover over-allotments, if any. The deal offering is expected to close on July 2, 2014, subject to customary closing conditions.

According to the company, the proceeds of the offering will be used for general corporate purposes, including, without limitation, research and development, general and administrative, manufacturing and marketing expenses, potential not yet identified acquisitions of companies, products, ANDAs, technologies and assets that complement our business. And we believe that the purpose of the offering may likely be to step up the marketing efforts for its increasing pipeline of approved drugs.”

In Other U.S. News…

Franklin Covey Company (NYSE:FC) ($20.60) – FC provides training and consulting solutions to address leadership, execution, productivity, trust, sales performance, customer loyalty, and education problems worldwide. The company reported record revenues for Q3 2014:

  • Revenue in third quarter fiscal 2014 increased 5% to $47.1 million, compared with $44.9 million in the prior year.
  • GAAP EPS is $0.11 vs $0.13 in prior year.

Quotes from management:

“We are very pleased with our continued progress on each of our major strategic objectives……We have made significant ongoing investments in our content, offerings, and organizational capabilities. We expect that the accelerated benefits and flow-through from these investments will be evident in our fiscal fourth quarter results, and in fiscal 2015 and beyond. We expect fiscal fourth quarter 2014 revenue, Adjusted EBITDA, operating income, and net income to be highest ever for a fourth quarter, also resulting in our highest-ever annual results in each of these areas for fiscal 2014 as a whole.”

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

Sincerely,

The GeoTeam