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Arthur Porcari  

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  • Kandi Technologies: Customs Records Contradict U.S. Electric-Vehicle Sales Claims [View article]
    Well it’s about time you finally got this attempt at a hit piece out. As you and I both know, you threatened the company with this article six weeks ago. And in the mean time you leaked that it was coming all over Wall Street. That’s why the short interested has been moving up again.

    Where do you get off saying comments like: " Kandi says it is poised to sell hundreds of thousands of its newer, faster electric cars in its home country"?

    While it is totally true, nobody knows KNDI better than I what the Company "said", and I never heard this very conservative company ever claim that in public. Where’s your documentation on this?

    You have done seven or eight attack articles against KNDI over the past two and a half years. 90% of what you put from earlier into subsequent articles. It amazes me that SA allows you to get away with this.

    Each of your past articles are almost exclusively attacking 3 to 5 year old items having to do with US sales. A couple of years ago, the company did waste the time to respond to your first article and admitted that you did find an error in placement of two lines in a chart that was not even required by the SEC. Remember, the three wheeled vehicles misplacement? And your once again repeated item in this piece over the four year old confusion over batching their gas powered mini and their electric; this also in a table that was not even required by the SEC. And what did the company do? Just to make you happy, they did re-file the erroneous 10k and 10 Q with the items the right place, though there was no requirement to do so. And what affect did it have on their bottom line numbers? Absolutely nothing!
    And your “genius” numbers. How is it you know who shipped what cars to the US? Are you aware that a company several years ago was selling private label KNDI cars under the name Roketta? Are you also aware that as many as a third to a half of KNDI car exports to the US were done by distributors who first bought the cars from KNDI in China and exported them under their own name?

    Other than the above items, about the only thing that is accurate is what you don't say.

    In all of your articles, you at least have enough honor to never have accused the Company of doing anything illegal. A fact you are well aware of.

    But I do give you credit for finally after seven articles, you mentioned something that investors care about in KNDI. China. And even more credit that you mentioned their JV with China's largest domestic passenger car maker, Geely. (0175.HK) I'll bet capable hands Company actually was "dumb enough" to drink KNDI's Kool Aid and placed their EV future in China in KNDI's hands. Were you aware that Li Shufu, Chairman, Founder and largest shareholder when asked by a reporter Why he selected KNDI for a JV partner, he responded by saying “..Condi (is in the) forefront of the country in this regard, this experience is very valuable, and Condi's proposed business model is to generate economic benefits

    You seem to think you know better than KNDI as to how they are going to pay for their major expansion plans. You mention the new $43 million facility, but what you seemed to have left out is that they already paid for their half as seen in a line item of their 10K. You know the line for “Deposit for " $ 24,397,967”? Remember, this goes in the Geely JV. it is up to Geely to pony up the rest.

    Regarding their Recent S-3. I'll bet you were shocked that after over two years of no small cap China stock filing any shelf S-3's, that the first one to do it was KNDI. The one US China stock you can't seem to knock down for your short selling friends, no matter how hard you try.

    Well, as you know, most legitimate Listed US companies always keep an Shelf S-3 active. KNDI is a legitimate US listed company. So why is it you think this out of the ordinary? This is not KNDI’s first shelf, they filed one in 2009 with their stock around this current level. Only after a year and an 80% move up in the stock price on heavy volume did they finally do a small portion of the shelf. I suspect they will eventually do a financing, but that’s what public companies do. But as KNDI’s very wealthy largest shareholder who I have met several times including in China told shareholders last summer in Atlanta, ”I am KNDI’s biggest shareholder, I am not going to do anything to hurt my equity by diluting at a low price”.

    One last point. I notice you took out your classic line in past articles which went something like: “Even if they themselves don’t have any SEC problems, just the fact they associate with people who do should be a warning” How is your boss Mark doing with his SEC problems? Didn’t look too good in the WSJ last month.
    Apr 23, 2013. 03:28 PM | 15 Likes Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    Nick- You said; "...5 months ago the Chairman promised to address these. 5 months later, their communication is still terrible..."

    I don't see the announcement the Company made five months ago as a "promise missed". There was no "promise" by KNDI, just an honest attempt at "transparency" by the CEO in disclosing what had already been announced in China by PRC controlled CALB, and penned with a written contract as Harris disclosed with a link to the respective SEC Form 8K.

    Knowing Mr. Hu and his very close contact with all levels of Government in China, I felt when that PR was issued that he was being somewhat forced to publish news on it here in the States, likely by legal counsel under the SEC rules of Fair Disclosure (FD).

    As we have subsequently seen pictures of an immense storage facility filled as far as the eye could see with completed Hangzhou mini-cars, KNDI was prepared to start delivery under the contract as soon as CALB gave the word. This of course did not happen in time to capture the subsidy rules that were in place at the time, but expired at year end 2012. Now, all must wait for the new program.

    But as Harris said above, CALB was punished for their failure to fulfill their portion of the contract in the time they originally requested, this by losing their exclusive access to the 20,000 Hangzhou order and now must compete with three other much more experienced leasing companies.

    Everything we see in the China media still reports an expectation by the City of Hangzhou to have all 20,000 EV's on the road by this years end. Time will tell, but in the meantime, KNDI's China progress continues.

    BTW, if my memory is correct, Elan Musk also had some problems with suppliers which caused him to also miss his goal last year. I personally don't blame him for a promise missed, and I would think that you don't either, but both stocks were punished none-the-less.

    IMO, Musk has done an incredible job taking TSLA to the point it is at today. And has been rewarded with a stock "priced to perfection". Much better than I would have thought when I wrote my first articles comparing the two Companies. But to any intelligent investor who takes the time to fully understand what CEO Hu has accomplished, so has KNDI; though not rewarded at all as of yet by the market.

    I am quite happy to see you elected to join the KNDI private group. Now the next step is to convert your passion for TSLA into at least a equal passion for KNDI. Similar to what happened with Harris, who in the beginning was a devout TSLA shareholder. (though I am not holding my breath that your conversion will be as total has Harris's :-)
    Feb 25, 2013. 03:36 PM | 5 Likes Like |Link to Comment
  • Republican Senators are making noise about the prospect of a Chinese company buying automaker Fisker after the EV maker drew $200M in loans from Uncle Sam. [View news story]
    This piece is a bit misleading. While they may buy a controlling Interest, the two Chinese companies in the lead are Donfeng (a State Owned Enterprise of the PRC) and Geely Auto, a Hong Kong SE listed Company without State Ownership, which is China leading pure passenger car maker who also now owns Volvo.

    A couple of weeks ago, Geely joined China Based, NASDAQ listed Kandi Technologies (KNDI) in a 50-50 Joint Venture to develop smaller EV's for China.

    Here is an article from Forbes China translated that gives more info on the Fisker deal.
    Feb 22, 2013. 09:12 AM | 1 Like Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    ampedupp11- Since Harris is going to respond to your specific question next week, let me just add now some "food for thought" about the KNDI PE.

    As Harris said in his article, KNDI has developed 9 different EV's from scratch using their own resources. TSLA makes it quite and obviously clear, that their large losses are primarily attributed to the development of their one EV.

    I strongly suspect KNDI's earnings would be much higher and PE much lower if it weren't for the expenses to develop their nine EV's over the past two years.

    As an intelligent investor, I assume you feel like I, that their investment in the future is worth a near term reduction in earnings.
    Feb 21, 2013. 04:17 PM | 2 Likes Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    Andrew, grow up. SA let your beloved Geo trash China's Harbin Electric down to $8 calling it a fraud (which Geo never did with KNDI) and a few months later Harbin was bought out for $24 cash a share.

    The fact that SA caused you humiliation when they caught you lying in your bogus piece and had to take down your article, is no reason to condemn them. Obviously by your tone against them, they really did ban your from spreading your tripe.
    Feb 21, 2013. 01:27 PM | 3 Likes Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    carikoo- The "facts" cannot be more clear. Do you question the fact that State Grid, Geely, Zoyte, China's largest battery company Lithium in the Air and the Cities of Jinhua and Hangzhou, have partnered up with KNDI? And if you do doubt the truth in this, do you feel that KNDI is scamming each of those entities to a point that the China Media has become complicit in this scam?

    This is not some story that just happened overnight. Go back and read m first articles on SA from over two years ago when the story started to evolve. While the "numbers" have been slow in coming due to a new concept in a giant bureaucracy, most every thing plus a lot more that I spoke of back then has come to pass.

    Apple was a beautiful story back in 2000 as a triple digit stock. As current history has now proven, was it any less beautiful in 2004 when it went down to $10 a share?

    Yes, for political and cultural reasons Mr. Hu is low keyed so perhaps the Company could be telling the story better. But the fact that intelligent investors have taken it upon themselves to explain what is happening take away from the validity?

    Of course many who have advanced the story own the stock. We put our money where our mouth is. Certainly the company is not paying any of us to do this. Our agenda is clear. We want to advance the timing of the inevitable result by spreading the "story" and that story plainly as as Harris suggested is " that of KNDI is going to be a multi-billion dollar company a few years in the future, irrespective of how owns the stock at that time".
    Feb 21, 2013. 01:22 PM | 2 Likes Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    Harris, forgot to mention. I think you might have a confusing line in your article that might leave a wrong impression. You said:

    "Any reasonable investor, in my opinion, would question why Tesla's stock is selling at a multiple of 10 times compared to Kandi's"

    Having written a number of these myself, I know how boggled the mind gets after around 30 hours of crafting. But you did KNDI an unintentional injustice with the above line by giving the impression that Tesla's market cap is only 10 times KNDI's.

    Actually, fully diluted including all stock options, Tesla's market cap is more like 50 times KNDI's market cap. According to TSLA's last Proxy, if you count all of Musk's and the rest of managements stock options, TSLA is approaching 150 million shares fully diluted. This compares to KNDI's 30 million.
    Feb 21, 2013. 11:09 AM | 2 Likes Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    Warning To all SA readers. This commentor, Andrew Cherna is a 22 year old kid who just graduated from college with a Philosophy degree. In July he wrote the first of two negative articles he put out on KNDI.

    The second one in September did get published by Seeking Alpha in August, but after I sent SA a letter taking his comments apart point by point, I proved to Seeking Alpha Editors that the information he put in the second article was all totally fabricated, they took an almost unprecedented stand and not only removed the article, but most likely suspended him from writing future articles since he has not written any on any company since.

    If you go to this link, you will see that the headline of his September article along with a few starting lines showing. But when you click on the link for the full article, you will see that SA took the article down.

    Andrew, in a way, I miss your incredulous rants. If you look at a chart, you will see that right after he put out this piece on July 5 the stock took off on a two month 100%+ move up to over $5 a share. If you read all the significant comments that were posted under his remaining first article, you will see that he was torn apart by investors who knew facts about the company. I suspect that is why the stock reacted so positively. His article did draw a lot of attention to the stock which in turn introduced more investors who were willing to buy and not short the stock at 2.50 like he recommended in that article.
    Feb 21, 2013. 06:15 AM | 5 Likes Like |Link to Comment
  • Kandi: Don't Look Now, It's Happening [View article]
    carlkoo-I couldn't agree with you more that "transparency" is extremely important when dealing with any company, including US Companies. I also am very suspect when the only transparency in evidence is that given by the Company in Question. While it is important that any Company should openly share as much information as possible with the public, to me it is much more important what other highly respected sector participants have to say about a Company. Particularly in their own land and language.
    As Harris states in his article, KNDI does not do an exemplary job of "tooting its own horn". But what it lacks in that area is made up many times more with what others in China are saying about the Company. Below I am going to give examples, but first an example in contrast.

    A couple of years ago China Media Express (CCME) was a "US Darling" by institutions and individual investors alike. The Company was putting out news right and left in the US; analysts loved it, institutions loved it, investors loved it, and the stock soared to the upper teens. Tens of millions of dollars were raised in the US. And today, hardly a remnant can be found. Yes, it turned out to be a mainly a fraud. One of a very small handful of China stocks that have been proved so. But, to any investor who really knows how to do Due Diligence on a foreign stock, this would not have been a surprise. Why? Because while all sorts of news on the Company was disseminated by the Company in the US, hardly any news could be found on the China website; as I warned my friends at the time who were interested in CCME as a possible speculation. If US announcements cannot be corroborated in a Company's own Country of operation, why would any investor with half a brain want to put money in the stock?

    Google Translators Search is an incredible tool for researching any foreign entity in any language. So there is no excuse for ignorant investors to claim fraud after the fact. They shouldn't have invested in the first place.

    But contrary to CCME, for every one positive revelation that KNDI makes in the US, the team from the Yahoo Private Forum mentioned below, finds four or five other, many yet non-disclosed positive items written about the Company in the China Media. And as Harris alludes to in this article, most of the time we as members of that forum find several articles in China referencing events, often days before it is announced here.

    On any given day, if you put in "Kangdi Electric Cars" in Google Translate (Yes you have to add the "g" in the search name for proper translation) and search Google you will find hundreds of China articles; from Government sites, news site, web media, to blogs mentioning "condi" (KNDI's translated name). if you read most of the past pro KNDI SA articles, particularly ones put out by myself and Marc Chang, you will find more than 100 translated links to back up what I am saying here.

    Yes, KNDI is a China Company with all of its EV operations in China. But if it weren't, I personally would have zero interest in the stock. As compared to the US which is a "consumer driven" economy, China is mostly "Policy Driven". "What the PRC mandates, the people will likely accept". China has mandated that EV's will be the future of consumer mobility in China and is spending hundreds of billions of dollar equivalents building the EV infrastructure.

    As I have said in my earlier SA article, China has no choice. There are only 42 out of 1000 households in China that have four wheeled enclosed passenger vehicles. That compares to 986 per thousand in the US. If China mandated gas powered cars for the future and even got to 500 per thousand, you and I would be riding on bikes for there would not be enough gas to go around in the US. So rest assured EV's will be a trillion dollar industry in China.

    But back to my opening comment about what "others" have to say about KNDI in China:

    In Harris's second link above " China's continued strong commitment" you will find a "Policy Paper" written by a top level PRC Government Agency who is "recommending" almost to a point of "mandating" that the "Hangzhou Condi" Model be adopted as the preferred plan for EV's in China. They specifically mention Kandi (Condi) because Kandi holds the patents to the disruptive Quick Battery Exchange model (they call it "for power") that pairs up with Vehicle to Grid (V2G) technology that after two years of testing, makes the most sense for China. (You don't get to this level of government recognition by spouting BS, or at least you don't live very long if caught)

    State Grid, # 7 on Fortune's Global 500 list is China's State Owned dominant electric utility which covers 88% of China's land mass and over 1 billion consumers, has now chosen KNDI as their partner in two joint ventures in the cities of Hangzhou and Jinhua to expend KNDI's QBEX technology. First in these two cities with combined population of over 20 million, and then for expansion to all of China in the future. Why? Because as mentioned in Harris's article above referencing the Nomura Securities Note on Geely, KNDI model provides a logical V2G solution which is almost a "holy grail" for any electric utility worldwide. (Do you think they have done their DD on KNDI before they attached their name to KNDI?)

    Searching the China web, you will see that Zoyte Automotive, a top 20 China ICE auto manufacturer and exporter entered a Strategic Alliance with KNDI. (Zoyte is based in Hangzhou like KNDI, they are not going to partner up with an impostor)

    Now,as you can see from Harris's article, China's top pure passenger vehicle leading manufacturer, Geely, selected KNDI as an equal partner to guide their expansion into EV's. (I suspect Li Shifu knows KNDI is the "real thing")

    Also from the above article, two of China's most prominent Provinces, Shandong and Hainan, have offered strong financial incentives for KNDI to expand into their provinces.

    And as you can see from the link under the" top world conferences on EVs" in Harris's article above, KNDI's Chairman Hu, was chosen to give the opening keynote address on one of the top International EV Expos worldwide.

    So yes carlkoo- Don't just listen to the Company, listen to what other spheres of influence involved in a Company's sector have to say about them.
    Feb 21, 2013. 06:01 AM | 7 Likes Like |Link to Comment
  • Phantom Shareholders At Kandi Technologies And Disclosure Issues At Guanwei - Part II [View article]
    Kandi Technologies Participated in 2012 Global New Energy Vehicle Conference

    Mr. Xiaoming Hu, Chairman and CEO Gave Keynote Speech With a Focus on Kandi's Newly Unveiled Short-Term EV Rental/Sharing Model

    I suppose your response to KNDI's CEO being selected to give the Opening Keynote speech at this Global EV conference in China which had over a thousand representatives from the EV World Attend in your opinion means that China is too stupid to realize that KNDI is a farce?

    BTW, if you think KNDI just made this up, Here is an article that came out in China on Friday solely addressing Mr. Hu's Keynote Speech.

    If Elon Musk was given the opportunity to give the keynote at a conference like this you can bet he would jump at the opportunity. The irony is that if He did give the speech, you can bet TSLA's stock would jump $5 as ignorant investors piled in thinking that TSLA was going to get a toehold in China.

    One of these days investors are going to start focusing on the hard fact that KNDI is the leader in EV's in China today, and for the foreseeable future. Not just a wish and a hope like TSLA is.

    All these BS articles have accomplished in the past is to assure KNDI's name stays in high profile so when KNDI's numbers start picking up, the audience will be there.
    Jan 14, 2013. 01:56 PM | 2 Likes Like |Link to Comment
  • Phantom Shareholders At Kandi Technologies And Disclosure Issues At Guanwei - Part II [View article]
    Dirk, your comment about transparency is not really valid in this case. KNDI fully reported all the shares it had outstanding at the time the stock started trading. No one, including the author is arguing that important point. Also, as I posted earlier, it is no ones business who the pre-public owner gives his shares to prior to the stock starting to trade.

    It is also not the Companies responsibility to file ownership forms on behalf of non-officers or directors. If anyone has a responsibility to file due to meeting or passing large position requirements, it is the receiving shareholder himself.

    While the original shareholder of the shell probably should have filed a Form 4 when he distributed his shares since the shell was a reporting company, if he distributed those shares in pieces less than 5% than in any case there would not have been an further reporting requirements for the beneficiaries. And under no circumstance would he be required to file who he sold the shares to.

    Regarding your "patents" comment. Interestingly, as you can see from this PR, the opposite happened several months ago. The CEO who had owned the patents prior, donated them all to the Company.

    Kandi Technologies Chairman Donates Personal Ownership of 11 Pure EV Patents to the Company
    JINHUA, CHINA--(Marketwire - Apr 23, 2012) - Kandi Technologies, Corp. (the 'Company' or 'Kandi') (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), announced today that the intellectual property rights relating to eleven key pure electric vehicle ( patents developed and previously personally owned by Mr. Xiaoming Hu, Chairman and CEO of the Company, already have been or are in the process of being transferred to the Company.

    One last comment or two that I didn't address earlier. While it might make intriguing reading to have a blow by blow description of the ups and downs in the stock price over the years as posted in the article, it should be remembered that the whole China Sector has been extremely volatile during the last several years. That's just the perils of the stock market.

    Also, while the author thought it worth mentioning the CEO of KNDI selling a small number of shares (10k of his 12.3 million), he failed to mention that he later on also bought a larger number of shares in the open market. (29k)
    Jan 8, 2013. 01:29 PM | 2 Likes Like |Link to Comment
  • Phantom Shareholders At Kandi Technologies And Disclosure Issues At Guanwei - Part II [View article]
    Mahler- You should also note that neither GEO or ShareSleuth ever used the words fraud or illegal in their several articles on KNDI as compared to other Companies they have written on.
    Jan 7, 2013. 08:40 AM | 2 Likes Like |Link to Comment
  • Phantom Shareholders At Kandi Technologies And Disclosure Issues At Guanwei - Part II [View article]
    Andrew- I thought you disappeared after SA took down your last attack article against KNDI for being non-factual. But after reading this comment, it should be clear to all that you have no interest in delving into facts. Just attack.

    If you ever expect to gain any credibility, don't go public making a fool of yourself as you again have with this comment.

    First of all, the interest in KNDI's EV growth is focused in China. However, if you took two minutes to search Google for KNDI dealers in the US, you would find several sources where their LSEV can be purchased.

    Try here:

    Or Here:

    Or here:

    Or Here:

    Or Here:

    (I test drove one at this location)

    Or Here:

    Or here:

    and many more...
    Jan 7, 2013. 08:37 AM | 2 Likes Like |Link to Comment
  • Phantom Shareholders At Kandi Technologies And Disclosure Issues At Guanwei - Part II [View article]
    I apologize. I use MS Outlook and it automatically sends a large majority of emails to the spam box. I just found your second email in my spam box, but have no record of your first. (not surprising since a name like Shareslueth sounds like something that should be in spam)

    Yesterday I posed this question to you on your Part 1. If you expect me to respond to this, once again, "mulligan", how about answering my question first? If your response is believable, I will be happy to take the time to respond to your request. You can take your time to get it right since I will be traveling this weekend.

    And, while not necessary, in addition if you like, could you explain to all here what any of this old history of early shareholders has anything to do with KNDI, the Company, today?

    Here it is a quote with the question again:

    "Just a thought, you should really just give back the money your were paid to do this worthless hatchet job. All you are doing is giving false hopes to the large short seller who is totally bagged in KNDI which according to your disclaimer does not include you. So seriously, who did pay you and how much? You cannot really expect anyone to believe you would take the time to write ten thousand words about about five and six year old history for free."
    Jan 4, 2013. 05:45 PM | 5 Likes Like |Link to Comment
  • Phantom Shareholders At Kandi Technologies And Disclosure Issues At Guanwei - Part II [View article]
    gtchambers3- If you, or anyone else reading this blog is intrigued into really learning about KNDI, KNDI has without a doubt the top Yahoo Private Forum. If you don't believe this then go to Google and type in the generic "Yahoo Private Forums" and you will see a link to it in either the one or two spot.

    Over 500 members and almost 10,000 posts in less than two years, along with a great due diligence file that is open to even non-members, made up of hundreds of links, mainly in the China media, that verify KNDI superior position in EV's in China.

    All, including SS are welcome to join as long as they are civil.

    Here is the link:
    Jan 4, 2013. 03:28 PM | 4 Likes Like |Link to Comment