Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
tftf- As you can infer from my comment to jef above, KNDI has been attacked many times mainly by SS and once by GEO, but never accused by them of anything illegal, let alone fraudulent. Really amazing when you think about all the hours put in by these attack writers who love to throw around the "fraud" word in their articles. Why, because they could find nothing tangibly wrong with the company.And believe me, if they could have, they would have reported it. The only logical reason for their writings is that KNDI was one of the few small cap China stocks that did not get blasted down to a single digit PE, so it has been continuously shorted fairly heavily for the past few years. When a short starts feeling uncomfortable, he pays guys like this to write attack articles.
Anyone can write an attack article on any company. I can assure you I could write one of mis-information, innuendo and obfuscation on Berkshire Hathaway that might cause the average investor to question the way they do business. But I am not going to be stupid enough to accuse them of illegal activities or fraud.
Aside from the fact only a handful of Chinese Companies have ever been accused of fraud by the SEC, the major reason a larger number have been delisted was due to US investor apathy. And insult to the Chinese Managers, so they just "go dark". Which means they just quit spending a million dollars a year over here to keep all their filings updated and catering to investors. And since many of these are Variable Interest Entities, (VIE), which is common for most Foreign issuers, not just Chinese, the lack of direct ownership in a company afforded by the VIE status, makes it easier for these frustrated companies to leave the US markets.
Can you blame them when they see their stock trading at stupid PEs while they are growing their companies?
In KNDI's case, firstly, it is NOT A VIE, it's a normal public C corp where shareholders have full voting control over the Company, secondly, I have never been concerned about they going "dark" in that the whole reason they originally came public in the US was at the urging of their US Off Road Recreational Vehicle Distributors and Dealers back in 2007. At that time, 99% of all of their products were exported to the US. The dealers and distributors felt it would be a lot easier to "brand" KNDI's name in the US if they could put "Manufacturer, Kandi Technologies, Listed on NASDAQ) in their literature.
And lastly, there is no other US listed China public company outside of the State Owned enterprises like PetroChina, China Telecom, Sinopec, etc. that is more directly involved at all levels of Government in China. In the US, you screw with the Gov or cause them to "lose face" and they give you money, try this in China and they give you a hemp necktie.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
jeff- If you read the comments under Konrads recent article, you will note I did address very specifically his concerns. Not only on his recent article, which was a "mulligan" he decided to take by republishing om SA, a reprint of what he put out on Forbes, two weeks ago, but IMO, tried to obfuscate and confuse SA readers by changing the Headline. When he first put it out on Forbes, the stock began to move up, not down as he hoped. A few days later the stock exploded, so he obviously has had a strike against his credibility. So why not put it out again?
If you read the last three articles (Forbes, SA, and the Forbes reprint on SA) Konrad addressed KNDI, you will note that he admitted in selling most of his stock a couple of months ago, but that was not the whole story.
Until his recent round of "left-handed" attack articles on KNDI, I have had significant respect for Tom. After all, if it were not for him, I would likely never have been a Seeking Alpha author. He is the one who convinced me to write for SA back in late 2010. So, yes, he and I have spoken many times to include prior to his first writing of this on Forbes. Not only did we talk before his latest writings, but I also provided him with any and all information he requested in writing and documentation. But he chose to ignore this and wrote what he did anyway.
Why? Well, I assume to look less foolish to the Green Investors who he manages money for. Let me explain.
On April 25, the ShareSleuth article he continues to refer to in his past three KNDI writings came out when KNDI's stock had come under pressure with above average volume and closed at its YTD low of 3.26. The next day the SS article was published. (SS is notorious for having their attack articles leak out before publication) While the stock did above average volume after the article hit, it did manage to close up that day .11. A few days before the SS article came out, I called Tom and suggested he consider writing something in Forbes on KNDI since he hadn't in a while. He told me he was considering doing so but he said it might take him a few weeks due to time constraints. I didn't bother him, but to my surprise, in his April Update of ten Green Stocks, he wrote a negative couple of paragraphs on KNDI and declared he hid sold most of his position based on the SS article.
I immediately called him up amazed that he didn't at least call me up first about his concerns. You can see this from reading my comments in the SS article. The reason the stock went up after the SS article is that this was the 8th attack article SS has put out against KNDI, in two years, never accusing them of even doing anything illegal, let alone anything fraudulent. Not unexpected since Carey at SS gets paid to do negative hit pieces. So he did the best he could by attacking KNDI with opinions, not facts other than a few minor 10K posting errors back in 2009 and 2010 that had no affect on its reported numbers. And certainly nothing against KNDI in the past three years.
But for whatever reason, Tom decided to "drink" the Kool-Aid SS was serving and blew out his "managed" accounts position in the mid to upper $3 level. I know this for a fact because he told me he had on the phone at that time. He told me, "I don't mind speculating with my own money, that's why I kept my own stock, but I felt uncomfortable keeping my managed accounts in the stock".
So now the stock takes off after he puts out the first shot in Forbes, I suppose he felt this necessary as his clients likely questioned his move in selling them out at the bottom, 50% lower, but kept his own shares, so the only thing he can do is to attempt to hurt it again after last Wednesdays run-up by republishing what he already failed at in Forbes. Obviously, that didn't work either so now the stock is up over 100% from where he sold out his investors.
I wouldn't be so irritated with him, were it not that he was attacking KNDI's CEO, Mr. Hu. Before I become heavily involved in any Company, I first have to feel totally comfortable with Management. Not only have I met with the CEO several times in the US, but in Nov. 2010, I went to visit the Company in China spending serious quality time at the facility and with the CEO. When I first met him in NY, June 2008, as we were saying good-bye, I congratulated him on making the move to the US Markets. He looked me square in the eye, and through the translator said; "Thank you, I promise I will never disappoint". When he came to the states for a "shareholders day" last August in Atlanta, I asked Tom to join the forty shareholders who made the trip. I specifically told him how impressed I thought he would be with Mr. Hu. He declined.
Not only had Mr. Hu never disappointed, His visions expressed to me in 2010, have been surpassed by achievements beyond my wildest dreams at the time.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
jens- Marc is referring to the max subsidy for the larger EV's in China, like BYD's that still sells for over $40k US, that number is correct for them. For the KNDI Geely Panda EV,, when sold with the Battery, the subsidy is likely half that amount leaving the consumer to pay more like $8-9 thousand.
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
And here is your "re-evaluation" an hour later:
"Kandi Technologies Revs Up Revenues From ATVs, Big EV Sale More Likely 9 comments, 9 called-out Comment Now Follow Comments My negative article this morning on Kandi Technologies (NASD:KNDI) first quarter results got blood boiling among the stocks’ advocates. Arthur Porcari, a former Merrill Lynch investment banker and the closest thing I know to an analyst following the stock, basically called me a “moron” for being disappointed in today’s reported results.
When people I respect call me a moron, I call them up and get details. Turns out he was right.
Expecting The Worst
Why was I disappointed? I was primed by yesterday’s sell-off to expect bad news, so I read the Q1 looking for bad news. There aren’t any consensus analyst numbers to compare, and I don’t follow the discussion on the chat boards, just the news articles, so the “bad news” I latched on to was the comment that “For the EV products, the Company has not realized mass unit sales during this reporting period.
Upside Surprise
Apparently that was not a disappointment. According to Porcari, “I don’t know of one shareholder who was expecting more then maybe 300 EV’s in the quarter.” He also said that the good revenue number from Kandi’s ATV business was a big upside surprise. He’d been expecting sales to be flat.
Why the Sell-Off?
Porcari attributes the sell-off over the last month to a large owner wanting out, at the same time volume dried. As for the sell-off yesterday which had me worked up, he attributed it to an article at Plug-in Europe which linked to some old and discredited allegations that Kandi had been padding its numbers. I find that very credible… it does not take much to move this stock around.
Why no Big EV Sale Yet?
I was ready to believe the worst about Kandi because we have been waiting for the first a big sale of EVs for many months now. In early April, there was a EV taxi fire in Hangzhou (the most likely candidate city for a large order.) This has bureaucrats paralyzed, but should actually be good news for Kandi. The taxi which blew up was a retrofit, with the batteries inside the passenger cabin. Now officials are looking for purpose-designed vehicles with batteries much more safely stowed outside the passenger compartment. Only Kandi is ready to deliver these.
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
Remember a year ago when you last made a fool out of yourself on Forbes? You posted this article. Then an hour later you reversed yourself. Here is the first article:
"UPDATED: EV Sales Not Revving Up at Kandi Technologies; Stock Sells Off 6 comments, 5 called-out Comment Now Follow Comments
UPDATE: Read the comments below. I’m in the process of re-evaluating my position on KNDI, and this was probably a good, not a bad Q1. More to follow.
UPDATE 2: I’ve re-evaluated. See here.
Chinese ATV and mini-Electric Vehicle (EV) company Kandi Technologies (NASD:KNDI) filed their first quarter report this morning.
Revenue was up 72% to $14.4 million from $8.3 million a year earlier. Net income excluding financial gains) was up 160% to $1.4 million from $550 thousand a year earlier. However, the gains were based mostly on the company’s off road vehicle business, which is recovering. The firm’s EV business (which has most investors excited about the stock) turned in a disappointing quarter. Kandi sold only 296 EVs this quarter, up only 85 (40%) from a year earlier. Meanwhile, the average sales price has dropped due to more cars sold without batteries. (These are leased.)
The stock sold off over 6% yesterday, dropping from $3.21 to $3.01 at the close, I suspect because some traders got some of the news early. I expect the stock will be down again today, although it opened up slightly.
Disclosure: No position. I sold at the open today.
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
And here was my third comment on your Forbes piece:
"I am in full agreement with your comment about concerns being long term. As long as Mr. Hu continues to execute the business and ignores ignorant detractors, long term this will be a hundred dollar stock.
My only concern is that KNDI’s “stock” finally starts getting the respect the “Company” is getting in China. When that happens, and looking at the way it is now trading it is starting to happen now, my six month target of $15 to $20 should be easy.
And, as I am sure you will agree since you have mentioned in past articles, I am the closest thing to an analyst following this stock."
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
And my second comment from your Forbes piece:
"But let me make one point clear. When I used the word “irrelevant”, it was not meant to be against you or your article as a whole. Upon re-reading my response, I it does look like it was my meaning and I apologize. It was against the significance of going after what most investors could consider “irrelevant” three to six years later. Had you had you or sharesleuth pointed out concerns in the last couple of years, I would have perhaps considered that relevant.
But I would also like your readers to know, that you did do what you said you would do back when you put out that small attack on Seeking Alpha a month or so ago and that was to contact me, both on the phone and through email and did give me a chance to respond. As you won’t deny, my response to you personally, was pretty much what I posted on my comment. But other than in just a passing way, you did not refer to my direct responses to you. So i did and we can now we can let the shareholders decide its importance.
I am curious, did you ever talk with Carey on the phone? I know you told me when we last spoke a few weeks ago, he was not receptive to talking to you.
Let me address one point that you made which is logically incorrect. Your statement: “The reverse merger process seems to have needlessly diluted existing shareholders,..” How is it you feel the public shareholders could have been diluted by this? If you or I founded, funded and developed a profitable company and decided to bring it public through a RTO, what difference does it make, or whose business is it, if we want to give away a third of our stock to some third party before the stock starts trading? If I want to give it to my garbage man, it is my business. The only shareholder that may have been diluted would have been Mr. Hu.
Now while I don’t disagree with you that perhaps the recipients of those shares might should have reported their receipt if they individually were given more than 5%, but their lack of filing cannot be blamed on the Company. It is the recipients responsibility to file the 13d with the SEC, not the company.
Regarding my “run-in” with the SEC 25 years ago? I have no problem you bringing that up. As you know it was an issue where short sellers complained that I had instigated a short squeeze. You bet I did and was and still am proud of it. It was a stupid charge in the first place and the only reason I signed that consent decree which gave me no fine or punishment was I was tired of spending money to fight the ludicrous charge.
Now Marc Cuban, ShareSlueths owner has his own SEC Problems big-time and I mean right now, not 25 years ago. And his Mama.com shareholders did get burned by his violation. Easily enough found by doing a google search of his name and SEC.
One last comment. The picture you used for the article is not one of any of KNDI’s 9 approved EV’s in China. It is a picture of a Low Speed Electric Vehicle that is sold in the US.
BTW, happy to see that you kept your KNDI stock and reported you are long at the time you wrote the article. Wise move."
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
Since you decided to take a mulligan on your Forbes article, I decided to put up the same comments I made on Forbes. Big difference with SA, is that you can't hide my comments like you did there. Here is my first comment.
Different from you and sharehsleuth, I have taken the time and spent my personal money to get to know KNDI’s CEO, Mr. Hu. both in China back in late 2010 (around the time that both you and sharesleuth ceased finding “problems” with irrelevant facts cared about today), and also in Atlanta when he openly invited all shareholders and interested parties to visit with him for a Shareholders day. Aside from that, I also took the time over the years to visit with him on the phone.
While I will admit he at times seems to hold his cards a bit closer to the vest than must US investors are used to, in hindsight seeing all of the incredible accomplishments he has made in jumping to the top of the EV heap in China coming out of no-where with his wonderful company tells me he played it Just Right. (Who in the EV arena would give their right arm to have Geely, China’s #1 Passenger car maker ask their small company to lead their entry into the EV space?) And I am no “spring chicken” at this. With my 40 year background having helped as many as 100 young companies enter the public market place both from my Merrill Lynch and personal brokerage firm ownership days, I can unequivocally state that no CEO is flawless. But as far as honesty and the best interests of shareholders are concerned, I have never met a more sincere CEO. This man, from inception to this day, has personally guaranteed KNDI’s bank debt, not because he has to, but because it get the sharheolders a lower interest rate. (I wonder why the ShareSlueths of the world don’t ever mention this).
Considering prior to early 2011, there was no-one at KNDI in China that spoke a word of English, the few flaws that did materialize during that time should not only have been expected, but in much larger quantity. I would like to see what any of the naysayers filings wold look like If your company listed in China and had to do your filings in Chinese.
I know you have been working on this piece for at least three months, while watching a few of your favorite stock burn out. If this is your worst shot against the KNDI, then I am even more confident, KNDI will be an incredible winner, and likely by year end. I guess what I don’t understand is why you wasted so much time to put out such an irrelevant piece? Hopefully, your article does draw significant new viewers who will take the time to do their own DD on the Company and stock. All publicity is good publicity if the Company has the “goods” and KNDI unquestionably does have the goods.
Regarding their S-3 filings. I would think you would have been impressed that any China Stock would have the guts to subject themselves to the new SEC rules covering Chin issuers. I sure don’t know any other China small caps that have done this. And even more impressive, they cleared SEC registration in an incredible short time of only five weeks. Faster than most US companies.
I totally agree, this stock will go much higher before they do any offering. Likely in the double digits, After all, the last time they filed an S-3 they didn’t pull the trigger on the S3 until 14 months later after the stock had gone up 150%. When it was filed, I spoke with Mr. Hu the next day and asked him whey he filed it? His answer was, KNDI pretty much always had an active S3, just like 90% of listed Companies, he asked whey should KNDI be any different? “KNDI has nothing to hide from the SEC”
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
dfv3- Thanks for the warm comment. Yes, it is good to see that KNDI's incredible accomplishments, which are well known to the China media, are finally starting to appear in scholarly documents such as the Stanford Review over here.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
jmap- Actually, it is Stanford University in their "Stanford Social Innovation Review - Spring 2013" 60 page paper which did specifically mention KNDI along with BYD leading the EV charge on page 54.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Cassina- Thanks for your comment. I tried to use less semi-colons this time :-)
This train has only barely left the station. I personally own a few shares going back to 2008, that I paid over $7 for.
With the incredible volume and decent movement, where the China media had been doing a very good job in spreading KNDI's accomplishments in building EV's, it is now spreading the news on its stock action. And in many of the articles like at the below link, comparing KNDI to TSLA.
While 99% of China National are forbidden to invest in US traded stocks, the remaining 1% make up a big number that will likely start impacting the stock as well.
I would like to personally invite you to join the Private Yahoo forum on KNDI mentioned in an early comment here. We really are supportive of TSLA and having you join us as a TSLA owner and one who enjoys commenting would be well received.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Thanks Marc. Would have responded sooner but believe it or not, the garbage truck this morning took out the phone lines in my neighborhood and I was without both phone and internet until just a few minutes ago.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Thanks randix- As a member myself, I highly recommend your forum as "the" place to get solid information on KNDI. The database and archives are an incredible source of info, particularly articles out of China.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Anyone can write an attack article on any company. I can assure you I could write one of mis-information, innuendo and obfuscation on Berkshire Hathaway that might cause the average investor to question the way they do business. But I am not going to be stupid enough to accuse them of illegal activities or fraud.
Aside from the fact only a handful of Chinese Companies have ever been accused of fraud by the SEC, the major reason a larger number have been delisted was due to US investor apathy. And insult to the Chinese Managers, so they just "go dark". Which means they just quit spending a million dollars a year over here to keep all their filings updated and catering to investors. And since many of these are Variable Interest Entities, (VIE), which is common for most Foreign issuers, not just Chinese, the lack of direct ownership in a company afforded by the VIE status, makes it easier for these frustrated companies to leave the US markets.
Can you blame them when they see their stock trading at stupid PEs while they are growing their companies?
In KNDI's case, firstly, it is NOT A VIE, it's a normal public C corp where shareholders have full voting control over the Company, secondly, I have never been concerned about they going "dark" in that the whole reason they originally came public in the US was at the urging of their US Off Road Recreational Vehicle Distributors and Dealers back in 2007. At that time, 99% of all of their products were exported to the US. The dealers and distributors felt it would be a lot easier to "brand" KNDI's name in the US if they could put "Manufacturer, Kandi Technologies, Listed on NASDAQ) in their literature.
And lastly, there is no other US listed China public company outside of the State Owned enterprises like PetroChina, China Telecom, Sinopec, etc. that is more directly involved at all levels of Government in China. In the US, you screw with the Gov or cause them to "lose face" and they give you money, try this in China and they give you a hemp necktie.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
If you read the last three articles (Forbes, SA, and the Forbes reprint on SA) Konrad addressed KNDI, you will note that he admitted in selling most of his stock a couple of months ago, but that was not the whole story.
Until his recent round of "left-handed" attack articles on KNDI, I have had significant respect for Tom. After all, if it were not for him, I would likely never have been a Seeking Alpha author. He is the one who convinced me to write for SA back in late 2010. So, yes, he and I have spoken many times to include prior to his first writing of this on Forbes. Not only did we talk before his latest writings, but I also provided him with any and all information he requested in writing and documentation. But he chose to ignore this and wrote what he did anyway.
Why? Well, I assume to look less foolish to the Green Investors who he manages money for. Let me explain.
On April 25, the ShareSleuth article he continues to refer to in his past three KNDI writings came out when KNDI's stock had come under pressure with above average volume and closed at its YTD low of 3.26. The next day the SS article was published. (SS is notorious for having their attack articles leak out before publication) While the stock did above average volume after the article hit, it did manage to close up that day .11. A few days before the SS article came out, I called Tom and suggested he consider writing something in Forbes on KNDI since he hadn't in a while. He told me he was considering doing so but he said it might take him a few weeks due to time constraints. I didn't bother him, but to my surprise, in his April Update of ten Green Stocks, he wrote a negative couple of paragraphs on KNDI and declared he hid sold most of his position based on the SS article.
I immediately called him up amazed that he didn't at least call me up first about his concerns. You can see this from reading my comments in the SS article. The reason the stock went up after the SS article is that this was the 8th attack article SS has put out against KNDI, in two years, never accusing them of even doing anything illegal, let alone anything fraudulent. Not unexpected since Carey at SS gets paid to do negative hit pieces. So he did the best he could by attacking KNDI with opinions, not facts other than a few minor 10K posting errors back in 2009 and 2010 that had no affect on its reported numbers. And certainly nothing against KNDI in the past three years.
But for whatever reason, Tom decided to "drink" the Kool-Aid SS was serving and blew out his "managed" accounts position in the mid to upper $3 level. I know this for a fact because he told me he had on the phone at that time. He told me, "I don't mind speculating with my own money, that's why I kept my own stock, but I felt uncomfortable keeping my managed accounts in the stock".
So now the stock takes off after he puts out the first shot in Forbes, I suppose he felt this necessary as his clients likely questioned his move in selling them out at the bottom, 50% lower, but kept his own shares, so the only thing he can do is to attempt to hurt it again after last Wednesdays run-up by republishing what he already failed at in Forbes. Obviously, that didn't work either so now the stock is up over 100% from where he sold out his investors.
I wouldn't be so irritated with him, were it not that he was attacking KNDI's CEO, Mr. Hu. Before I become heavily involved in any Company, I first have to feel totally comfortable with Management. Not only have I met with the CEO several times in the US, but in Nov. 2010, I went to visit the Company in China spending serious quality time at the facility and with the CEO. When I first met him in NY, June 2008, as we were saying good-bye, I congratulated him on making the move to the US Markets. He looked me square in the eye, and through the translator said; "Thank you, I promise I will never disappoint". When he came to the states for a "shareholders day" last August in Atlanta, I asked Tom to join the forty shareholders who made the trip. I specifically told him how impressed I thought he would be with Mr. Hu. He declined.
Not only had Mr. Hu never disappointed, His visions expressed to me in 2010, have been surpassed by achievements beyond my wildest dreams at the time.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Thanks for the comment.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Thanks for commenting
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
"Kandi Technologies Revs Up Revenues From ATVs, Big EV Sale More Likely
9 comments, 9 called-out Comment Now
Follow Comments
My negative article this morning on Kandi Technologies (NASD:KNDI) first quarter results got blood boiling among the stocks’ advocates. Arthur Porcari, a former Merrill Lynch investment banker and the closest thing I know to an analyst following the stock, basically called me a “moron” for being disappointed in today’s reported results.
When people I respect call me a moron, I call them up and get details. Turns out he was right.
Expecting The Worst
Why was I disappointed? I was primed by yesterday’s sell-off to expect bad news, so I read the Q1 looking for bad news. There aren’t any consensus analyst numbers to compare, and I don’t follow the discussion on the chat boards, just the news articles, so the “bad news” I latched on to was the comment that “For the EV products, the Company has not realized mass unit sales during this reporting period.
Upside Surprise
Apparently that was not a disappointment. According to Porcari, “I don’t know of one shareholder who was expecting more then maybe 300 EV’s in the quarter.” He also said that the good revenue number from Kandi’s ATV business was a big upside surprise. He’d been expecting sales to be flat.
Why the Sell-Off?
Porcari attributes the sell-off over the last month to a large owner wanting out, at the same time volume dried. As for the sell-off yesterday which had me worked up, he attributed it to an article at Plug-in Europe which linked to some old and discredited allegations that Kandi had been padding its numbers. I find that very credible… it does not take much to move this stock around.
Why no Big EV Sale Yet?
I was ready to believe the worst about Kandi because we have been waiting for the first a big sale of EVs for many months now. In early April, there was a EV taxi fire in Hangzhou (the most likely candidate city for a large order.) This has bureaucrats paralyzed, but should actually be good news for Kandi. The taxi which blew up was a retrofit, with the batteries inside the passenger cabin. Now officials are looking for purpose-designed vehicles with batteries much more safely stowed outside the passenger compartment. Only Kandi is ready to deliver these.
http://onforb.es/11rmHug
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
"UPDATED: EV Sales Not Revving Up at Kandi Technologies; Stock Sells Off
6 comments, 5 called-out Comment Now
Follow Comments
UPDATE: Read the comments below. I’m in the process of re-evaluating my position on KNDI, and this was probably a good, not a bad Q1. More to follow.
UPDATE 2: I’ve re-evaluated. See here.
Chinese ATV and mini-Electric Vehicle (EV) company Kandi Technologies (NASD:KNDI) filed their first quarter report this morning.
Revenue was up 72% to $14.4 million from $8.3 million a year earlier.
Net income excluding financial gains) was up 160% to $1.4 million from $550 thousand a year earlier.
However, the gains were based mostly on the company’s off road vehicle business, which is recovering. The firm’s EV business (which has most investors excited about the stock) turned in a disappointing quarter. Kandi sold only 296 EVs this quarter, up only 85 (40%) from a year earlier. Meanwhile, the average sales price has dropped due to more cars sold without batteries. (These are leased.)
The stock sold off over 6% yesterday, dropping from $3.21 to $3.01 at the close, I suspect because some traders got some of the news early. I expect the stock will be down again today, although it opened up slightly.
Disclosure: No position. I sold at the open today.
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
"I am in full agreement with your comment about concerns being long term. As long as Mr. Hu continues to execute the business and ignores ignorant detractors, long term this will be a hundred dollar stock.
My only concern is that KNDI’s “stock” finally starts getting the respect the “Company” is getting in China. When that happens, and looking at the way it is now trading it is starting to happen now, my six month target of $15 to $20 should be easy.
And, as I am sure you will agree since you have mentioned in past articles, I am the closest thing to an analyst following this stock."
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
"But let me make one point clear. When I used the word “irrelevant”, it was not meant to be against you or your article as a whole. Upon re-reading my response, I it does look like it was my meaning and I apologize. It was against the significance of going after what most investors could consider “irrelevant” three to six years later. Had you had you or sharesleuth pointed out concerns in the last couple of years, I would have perhaps considered that relevant.
But I would also like your readers to know, that you did do what you said you would do back when you put out that small attack on Seeking Alpha a month or so ago and that was to contact me, both on the phone and through email and did give me a chance to respond. As you won’t deny, my response to you personally, was pretty much what I posted on my comment. But other than in just a passing way, you did not refer to my direct responses to you. So i did and we can now we can let the shareholders decide its importance.
I am curious, did you ever talk with Carey on the phone? I know you told me when we last spoke a few weeks ago, he was not receptive to talking to you.
Let me address one point that you made which is logically incorrect. Your statement: “The reverse merger process seems to have needlessly diluted existing shareholders,..” How is it you feel the public shareholders could have been diluted by this? If you or I founded, funded and developed a profitable company and decided to bring it public through a RTO, what difference does it make, or whose business is it, if we want to give away a third of our stock to some third party before the stock starts trading? If I want to give it to my garbage man, it is my business. The only shareholder that may have been diluted would have been Mr. Hu.
Now while I don’t disagree with you that perhaps the recipients of those shares might should have reported their receipt if they individually were given more than 5%, but their lack of filing cannot be blamed on the Company. It is the recipients responsibility to file the 13d with the SEC, not the company.
Regarding my “run-in” with the SEC 25 years ago? I have no problem you bringing that up. As you know it was an issue where short sellers complained that I had instigated a short squeeze. You bet I did and was and still am proud of it. It was a stupid charge in the first place and the only reason I signed that consent decree which gave me no fine or punishment was I was tired of spending money to fight the ludicrous charge.
Now Marc Cuban, ShareSlueths owner has his own SEC Problems big-time and I mean right now, not 25 years ago. And his Mama.com shareholders did get burned by his violation. Easily enough found by doing a google search of his name and SEC.
One last comment. The picture you used for the article is not one of any of KNDI’s 9 approved EV’s in China. It is a picture of a Low Speed Electric Vehicle that is sold in the US.
BTW, happy to see that you kept your KNDI stock and reported you are long at the time you wrote the article. Wise move."
Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
Different from you and sharehsleuth, I have taken the time and spent my personal money to get to know KNDI’s CEO, Mr. Hu. both in China back in late 2010 (around the time that both you and sharesleuth ceased finding “problems” with irrelevant facts cared about today), and also in Atlanta when he openly invited all shareholders and interested parties to visit with him for a Shareholders day. Aside from that, I also took the time over the years to visit with him on the phone.
While I will admit he at times seems to hold his cards a bit closer to the vest than must US investors are used to, in hindsight seeing all of the incredible accomplishments he has made in jumping to the top of the EV heap in China coming out of no-where with his wonderful company tells me he played it Just Right. (Who in the EV arena would give their right arm to have Geely, China’s #1 Passenger car maker ask their small company to lead their entry into the EV space?) And I am no “spring chicken” at this. With my 40 year background having helped as many as 100 young companies enter the public market place both from my Merrill Lynch and personal brokerage firm ownership days, I can unequivocally state that no CEO is flawless. But as far as honesty and the best interests of shareholders are concerned, I have never met a more sincere CEO. This man, from inception to this day, has personally guaranteed KNDI’s bank debt, not because he has to, but because it get the sharheolders a lower interest rate. (I wonder why the ShareSlueths of the world don’t ever mention this).
Considering prior to early 2011, there was no-one at KNDI in China that spoke a word of English, the few flaws that did materialize during that time should not only have been expected, but in much larger quantity. I would like to see what any of the naysayers filings wold look like If your company listed in China and had to do your filings in Chinese.
I know you have been working on this piece for at least three months, while watching a few of your favorite stock burn out. If this is your worst shot against the KNDI, then I am even more confident, KNDI will be an incredible winner, and likely by year end. I guess what I don’t understand is why you wasted so much time to put out such an irrelevant piece? Hopefully, your article does draw significant new viewers who will take the time to do their own DD on the Company and stock. All publicity is good publicity if the Company has the “goods” and KNDI unquestionably does have the goods.
Regarding their S-3 filings. I would think you would have been impressed that any China Stock would have the guts to subject themselves to the new SEC rules covering Chin issuers. I sure don’t know any other China small caps that have done this. And even more impressive, they cleared SEC registration in an incredible short time of only five weeks. Faster than most US companies.
I totally agree, this stock will go much higher before they do any offering. Likely in the double digits, After all, the last time they filed an S-3 they didn’t pull the trigger on the S3 until 14 months later after the stock had gone up 150%. When it was filed, I spoke with Mr. Hu the next day and asked him whey he filed it? His answer was, KNDI pretty much always had an active S3, just like 90% of listed Companies, he asked whey should KNDI be any different? “KNDI has nothing to hide from the SEC”
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
http://bit.ly/11tbSc1
Thanks for commenting.
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
This train has only barely left the station. I personally own a few shares going back to 2008, that I paid over $7 for.
With the incredible volume and decent movement, where the China media had been doing a very good job in spreading KNDI's accomplishments in building EV's, it is now spreading the news on its stock action. And in many of the articles like at the below link, comparing KNDI to TSLA.
While 99% of China National are forbidden to invest in US traded stocks, the remaining 1% make up a big number that will likely start impacting the stock as well.
I would like to personally invite you to join the Private Yahoo forum on KNDI mentioned in an early comment here. We really are supportive of TSLA and having you join us as a TSLA owner and one who enjoys commenting would be well received.
Link to the China article I mentioned.
http://bit.ly/14IDGtP
Link to the KNDI forum
http://bit.ly/OhDfjD
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]
Was Tesla's Recent Stock Action The Cause Of Kandi Technologies High Volume Run-Up? [View article]