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.
- 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.
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.
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.
DISCLOSURE: Long KNDI