Examining Kandi Technologies: A China-Based EV and Quick Change Battery Company (Part I)

| About: Kandi Technologies (KNDI)

Ever hear of China based NASDAQ listed Kandi Technologies [KNDI]? If you haven't, you're not alone.

No financial writers, no analysts, and no significant institutions or funds are interested. But they should be. This series will go into the reasons why.

In part II, we'll look at the company's business and history :

  • Kandi is already selling EV mini-cars by the thousands.
  • Kandi landed a joint venture with three multi-billion dollar Companies for quick-change battery charging, with the first stations opening in November.
  • Owns a mortgage-free modern ten building, 2.7 million sq.ft., 400 acre complex, with manufacturing potential of over 100,000 vehicles per year.

In part III, we'll look at Kandi's financials:

  • The first six months 2010 revenues up 91.5% to $18,166,224 and net income up 383.5% to $1,010,782.

  • They are sufficiently capitalized and led by a highly experienced and “connected” CEO and 60% controlling shareholder.

In part IV, we will look at the company's current valuation and where I think it will be heading.

  • Kandi's second half 2010 top line should double, bottom line should quintuple.

  • The company is significantly undervalued.
  • They have been continuously profitable and trading under replacement value.
  • The stock is trading at 50% off its high year to date.

I have closely followed KNDI and have been a shareholder since the day it started trading in the US in mid 2007. This is a company led and controlled by a very conservative non-English speaking, well connected, very wealthy CEO, who even to this day still personally guarantees the majority of its debt. Not because he has to-- as I will discuss later on in the Asset part of this tome, but because it keeps the cost of money down. (Know of any other NASDAQ CEOs --who only hold 60% of the current 21 million shares and are paid an annual salary of $24,000 a year-- with that much confidence in their company? I don’t.) When I say conservative, I am speaking of a man who flies coach, hates to announce anything until it is done and almost always surprises on the upside.

While I have met the CEO once, and spoken to him through a translator a total of three times, I neither claim, nor do I care to have, any special access to information other than what is published both in the US and in the PRC. The latter, thanks to the Internet and Google Translator, I must add is a treasure trove of Company information that we don’t see published in the United States.