Geong Share Discussion Threads

[h2owater] 11/10/2013 16:58

New Targeted Industry Sectors

The Company has established a strong leadership position in the Chinese finance sector and also in telecom, automotive and manufacturing sectors. We have, over the last 12 months, extended our SaaS business to energy, digital technology and transportation sectors. We also serve some of the large international banks. Our future growth strategy is to offer our expertise to second tier banks and insurance conglomerates by leveraging our established brand name and our proven solutions. For example, in the banking industry, there are more than 190 commercial and city banks as our potential clients in the coming years. China is a big market which we will continue to focus on.

Partner Strategy

Our long standing and continued partnership with IBM has been very successful for both parties. We see the partnership being further strengthened as we have been chosen by IBM as one of their few favoured suppliers again.

The partnership with Oracle began in 2007. We doubled our business in 2008 and 2009. In 2010, and we successfully expanded our partnership to the Asia Pacific region.

We have a segmented market partnership strategy to avoid conflict and competition amongst partners.

Cloud Computing

GEONG's Social Business Solution was launched in July 2011. The objective is to enhance our ability and to expand our capacity in providing mobile Internet applications and operation services in the Greater China region. Our goal is to become the largest enterprise social business solution provider utilising Cloud computing technologies in China by 2016.

GEONG believes that social networking operation on Cloud computing has great business potential and has plans in place to develop five social networking applications on Cloud computing. This will create a high barrier to entering for competitors.

Business Strategy and Growth Outlook in China

The technological landscape in China is developing rapidly and we look forward to participating in that changing environment with confidence. The Group, with £5.3 million of cash on its balance sheet, is adequately funded for future growth and development.

The traditional IaaS solution is a good means to win new clients. SaaS solution is a follow-on business which will secure long-term contracts with quarterly or monthly fees, predominantly based on usage. GEONG is confident that the new business model will deliver a steady revenue stream with increased cash conversion.

GEONG's strategy is to maintain its market leading position in the delivery and in providing operational service of online business solutions for large enterprises in China.

GEONG Smart Platform will keep pace with IBM and Oracle's middleware technologies development to ensure that we can offer the most modern and innovative industrial solutions for our clients. GEONG's growth is tied to our clients' online business growth, which, in turn, is driven by the rapid expansion of social networking and mobile Internet applications in China. The burgeoning world of social media has created yet another vast data mine for companies. Currently there are over 216 million social networking users in China and this is forecasted to double by 2013. Mobile Internet users will increase from the current figure of over 400 million to 600 million by end of 2012.

hxxp://www.geong.com/Channel/342830

[h2owater] 11/10/2013 16:49

Mcap still too low 2.89 million.

Expecting at least a 10 million mcap by Nov!

[sir rational] 11/10/2013 16:37

Could be CULS I guess, all has to be RNSd so we'll find out soon enough. Unlikely to be negative IMV as leaky old trades today highlight something good about to be made public I reckon.

[stewjames] 11/10/2013 16:11

Hmmm. CULS shenanigans?

[rivaldo] 11/10/2013 15:47

Amazing really - over 10% of the shares in issue have been traded today already.

Those who sat and watched at 3p are presumably those still watching today in a slightly dazed fashion.

[simon templar qc] 11/10/2013 14:17

That's dependant on whether the company is able to maintain any meaningful profitability going forward and they get their cash in rather than write off any receivables.

A big if!

I an not trying to denigrate what has happened here, there may be good value even at this level but I would want more concrete proof before I took a large position.

I will watch with interest.

[sir rational] 11/10/2013 14:08

It's not really a rise though. I see it more as a recovery to where it probably should have been throughout the last 18 months, ie sadly meandering between 10p and 16p or so.

[simon templar qc] 11/10/2013 14:01

These situations are relatively rare when a share price spikes so much in a short space of time. You generally get some kind of a sudden retraction.

I must admit its an unusual situation concerning the assets of the company. The company has shown a poor history of collecting its receivables and the recent statement did no give me enough confidence things would dramatically change much.

New investors on a tip wouldn't realise that however that is why I tend to think its been tipped somewhere.

Loads of tips sheets around including tech invest I am always wary of Fleet St publications.

I am not too surprised with the rise of late as if the company was able to get their cash in quickly the company would be undervalued.

History has taught that is unlikely to happen soon however imo.

[stegrego] 11/10/2013 13:03

Well they say in a Bull market, all ships rise with the tide.

And this is certainly a floater!

[simon templar qc] 11/10/2013 12:55

Cannot see this spike is sustainable good luck in any event.

[sir rational] 11/10/2013 12:12

GL Burnage. There'll be a few like you plus a few who made good profits already, you can't blame anybody for taking profits or cutting losses. I guess one of our 3% holders would be far happier being a 1% holder with a big profit, so would I to be honest ;-)

[burnage] 11/10/2013 12:05

I'm out.

3.5p to 10p within days is a huge %age rise and enough for me to cut my losses.

Been holding these for over two years with an avg of 18p - had written them off to be honest ... out at a loss today but far better than it could have been when the share price was at 3.5p for so long.

No idea of reason behind rise - could easily just be an anti-climax, have to be happy with some of my money back tbh.

Good luck all.

[sir rational] 11/10/2013 11:39

JTC either one of those scenarios would be solid, good news AFAIAC.

I'd prefer the latter, of course.

[jtcod] 11/10/2013 11:27

Fwiw I think either Eacn is right or our lenders are in the legal process of converting the debt and the broker/mm is privy.

[sefton1] 11/10/2013 10:29

Just more rear end hot air from the augustdope troll. while he is spouting rollocks i'm now up 200% here since March. What a bitter loser

[simon templar qc] 11/10/2013 10:28

If u are a holder u can attempt to force Geong's hand. With such a sharp rise they really have a duty to make a statement.

[sir rational] 11/10/2013 10:10

Even if it's not a buyback prog, the Eacn comment about somebody knowing that a buyback prog is pencilled in for early 2014 (when the cash rolls in) would be one possible trigger, the buying is pretty confident and relentless.

[sir rational] 11/10/2013 09:48

Cheers Riv. I guess some investors might have participated in the phone in session for the AGM and asked a few good questions - and got a few good answers maybe. Shame I didn't know about it or I would have signed up.

[augustusgloop] 11/10/2013 09:44

The share price rise is unlikely to be due to the recent 'improvement statement of receivables' since they issue such lies on a regular basis - with usually minimal impact on the share price

For instance Jan 2012:

"In the 3 months to 31 December 2011 we have collected GBP2.2m of the trade
receivables, approximately 76% of the balance outstanding as at 30 September
2011, excluding the GBP2.4m which is subject to deferred payment terms. We expect
the remainder of GBP0.7m to be collected in the current quarter ending 31 March
2012.

Similarly, our top 10 customers accounted for approximately GBP10.8m, or 80%, of
the accrued income of GBP13.2m as at 30 September 2011. In the period from 31
March 2011 to 30 September 2011, accrued income increased by GBP4.0m as a result
of services provided which have not yet been invoiced and reduced by GBP2.2m as a
result of previously accrued income which has now been invoiced. Furthermore, GBP
1.8m of this newly invoiced amount has already been collected with the
remaining GBP0.4m due to be collected in the current quarter ending 31 March
2012. The disproportionate net increase in accrued income, when compared with
the revenue generated from IaaS business, has arisen largely as a result of one
large and long term contract, accounting for some GBP1.8m, which will not be
invoiced until late this year. We expect to have invoiced substantially all of
the current accrued income balance by 31 December 2012 reflecting when the
majority of the milestones on current contracts will have been achieved.

The debtor days are currently skewed by the deferred payment terms on GBP2.4m,
40% of our current trade receivables, referred to above and the Board remains
confident that the debtor days will begin to stabilise when we have received
the GBP2.4m in full and as the proportion of SaaS sales increases beyond the
current 24% of sales. In the meantime, we will continue to work with our
customers to improve our cash flows and working capital position."

-------------------

Very promising at the time -- but we now know that exactly the opposite happenned.

[rivaldo] 11/10/2013 09:40

SR, I've not seen any posts on T.M.F. Nor have there been any tips in tipsheets etc - someone would have picked it up if there had. Trendwatch in its monthly issue on October 9th had just 3 lines in a round-up of dozens of companies' news, concluding that it was for "speculators only"! That's all I've seen.

Impressive volumes once again today with over 800,000 shares (£64k or so) traded already.

Corrientes, I agree.

[augustusgloop] 11/10/2013 09:35

No serious investor would push the share price up so much to buy such a relatively small value of shares.

This has been done in a way that building a stake as cheaply as possible is not a priority.
In fact it looks as if the purchases are aimed at RAISING the share price

Who benefits most from a raised share price -- the directors.

Thus, I concur with eacn -- 99% certain that this is a buyback.

We will know soon enough.