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Arthur Porcari

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  • Revisiting Kandi: Why I Remain Confident in This Stock [View article]
    captainccs, good to see you still around. Actually TSLA was relevant in that this article showed up under TSLA's news retrieval as well. You know what I mean? :-)
    Mar 3 04:15 PM | 1 Like Like |Link to Comment
  • Revisiting Kandi: Why I Remain Confident in This Stock [View article]
    If you have the stomach you will love the ride. With a little patience, I suspect you will see that 200% and more here in months, not years. Funds are now starting to find KNDI. In the last two quarters, Institutional holdings were up more then 500% to around 2.5 million.
    Mar 3 04:12 PM | 1 Like Like |Link to Comment
  • Revisiting Kandi: Why I Remain Confident in This Stock [View article]
    If history hold true for 10k's, March 31 or maybe a day earlier
    Mar 2 01:10 PM | 1 Like Like |Link to Comment
  • Revisiting Kandi: Why I Remain Confident in This Stock [View article]
    For starters they are not my graphs, they area Trading Economics.

    I assume you are saying that the graphs I posted do not give justice the the scope of just how dramatic a gain China would have to make to even start catching up with the US.

    But really, if both graphs started from zero, the US graph, to show a comparison, would probably double the length of the article:-)
    Mar 2 12:33 PM | 1 Like Like |Link to Comment
  • Revisiting Kandi: Why I Remain Confident in This Stock [View article]
    I just heard a Warren Buffett Quote which IMO fits KNDI perfectly. "The best way to value an asset is if you would own it even if it was quoted".
    Mar 2 08:21 AM | 1 Like Like |Link to Comment
  • Revisiting Kandi: Why I Remain Confident in This Stock [View article]
    I don't know where Yahoo Finance gets it's reporting dates, but in the 3.5 years KNDI has been public, it always reports it 10K on or about March 31. I don't see this year being any different. A few weeks ago Yahoo said the numbers would be out on Feb 8. which they have now revised to a still wrong date.

    I do expect a nice improvement for the fourth quarter and full year operating income and funds flow from operations, but having only begun their first consumer sales in the last five weeks of the year, this stock should be bought as a "sizzle" play on EV's in China for earnings this year and beyond, not last years particularly due to the irrelevant non-cash amortization charges.
    Mar 2 08:16 AM | 2 Likes Like |Link to Comment
  • Kandi Technologies Delivers on Promise - In Less Than a Year [View article]
    Don't know why this link is not translating, but here is what the paragraph says followed by the Chinese link.

    "No matter how the battery production, and finally, the interface standard is us." Liu Zhenya, uniform interface standard for the electric car industry chain to lead quite confident, it is learned, the CEC under the auspices of the national grid was established in 2010 the energy industry, electric vehicles Charging Facilities Standardization Committee, plans to use the initial 2-3 years to establish a national unified electric vehicle charging facilities standards."

    inf.315che.com/n/2011_.../

    And here is a link to the google translator to past the above link into.

    translate.google.com/?...|en|
    Feb 6 05:47 PM | Likes Like |Link to Comment
  • Kandi Technologies Delivers on Promise - In Less Than a Year [View article]
    Sorry apparently that link didn't translate. Lets try it again.

    translate.google.com/t...|en&u=inf.315che.com/n/2011_.../
    Feb 6 05:39 PM | Likes Like |Link to Comment
  • Kandi Technologies Delivers on Promise - In Less Than a Year [View article]
    wtb-Perhaps I put the word supposedly in the wrong position. What I should have said was "He spoke with someone who "supposedly" was a local SG executive". That's the best I can do since I find it incomprehensible that any senior executive that would really be "in the know", would even consider making comments about deal negotiations to some random shareholder.

    Here we are three weeks later an no new light has shined on anything he said to give credence to what he said in that post. In fact the only new item we found was that it would be two to three years before a "final" decision on just what standards would be acceptable.

    (last paragraph on this link below)

    translate.google.com/t...|en&u=inf.315che.com/n/2011_.../
    Feb 6 05:37 PM | Likes Like |Link to Comment
  • Kandi Technologies Delivers on Promise - In Less Than a Year [View article]
    Naiethebull-, I was just asked a similar question on the Yahoo board.

    "What can Kandi's management do to change the negative market play and how do you see this playing out in 2011?"

    In this environment, I don't see much that Management can do to Change the "Negative Market Play". There is an old Market adage "When the Bawdy House burns down, the good girls go with the bad" that seems appropriate for the movement.

    Take for example, Hartford Financial (HIG) When the Financial Stocks melted down in early 2009, that stock went from $65 Sep 08 to $3.33 Mar 09. Today it is at $30. Now maybe there was a reason form the Banking stocks to have tanked 95%, but certainly not an old line insurer like HIG. At the bottom it still had both a positive working capital and book value of over $20 a share.

    But one thing I do think they should do is hire an International IR Firm that has excellent Institutional connections and bi-lingual staff.

    Re. the rest of this year? While I guess the stock could go lower, artificial events as is happening to China stocks in general right now, IMO, cannot keep the good China stocks down to the current levels much longer. While it doesn’t have the upside sizzle of KNDI, it is amazing to me to see a China Blue Chip like CAAS trading at 12.91 down from 27 not that many months ago. Big 4 auditor, analysts love it, 7 PE. Go figure.

    I ran the calculation on this board a month or so ago showing if KNDI only sells 5000 cars this year and legacy business just matches last year, it should earn around $.65 a share. 5000 should be fairly easy. They did 2100 EV’s in 2009 and around 1600 for the first nine months of 2010, so for 2011 they should be able to do at least 1500 in the US, 1000 in Italy leaving only 2500 in China.

    The Company is in the process of automating the facility to get capacity up to 100,000 units annually, with this, the Company could easily land a larger order and blow away the 5000 car estimate.

    BTW, when KNDI does get to the 100,000 annual number, based on say 30 million shares, it should earn between $7 and $9 a share net.

    IMO, the current market cap of around $100 million is a joke. The Company has less than a million in real long term debt. The replacement cost of their Plant and land rights alone is worth upwards of $80 million. With the recent $5.50 three million share stock offering completed, the Company should report around a $25 million working capital surplus up from a $13 million working capital deficit the year before. A year when they not only had no EV’s authorized for sale in China, no deals even inferred in Jinhua and Hangzhou, Never a mention of Quick Battery Exchange, no cash subsidies and no deal in Italy. Yet the stock closed yesterday, $.50 lower then year end 2009.

    There is no question, they are well funded and apparently doing everything right in their Trillion dollar potential market. It’s a shame the regulators let short sellers get away with spreading dis-information, mis-information and just plain lies to scare honest but ignorant shareholders out of their stock, but I can only see the stock as destined to be at a future price many multiples of the current, no matter who the future shareholders are.

    Hope this helps
    Feb 6 10:25 AM | 1 Like Like |Link to Comment
  • Kandi Technologies Delivers on Promise - In Less Than a Year [View article]
    Lawrence- Other than a couple of comments from an on again, off again yahoo chat board supporter and shareholder who supposedly spoke to some local executive at State Grid, even now, three weeks later, I have found no evidence of any problem between State Grid and KNDI or concern that KNDI’s common sense “Side Slide” Express Change technology will not be developed as one of the QBR standards.

    On Jan 20th he posted the comment I pasted below which immediately following caused a .60 meltdown in the stock.

    I quickly brought his comment to the attention of both Company IR and Cathy Cao, KNDI’s EVP Finance, who both spoke with KNDI's CEO Mr. Hu in China that evening about this post, the response I got back was that Mr. Hu said very clearly that KNDI's current relationship with State Grid is Excellent. But does that mean KNDI will only partner up with SG everywhere in China? Of course not, that was never the plan. If for no other reason, there are other Energy giants like CNOOC, a sibling State Controlled Enterprise to SG, (KNDI's original partner back in Jan 2010 which when announced, took the stock up 40% in a day), who have spent many millions already developing QBR models in various cities that KNDI also has an Excellent relationship with.

    As can be seen from the pasted copy of his post below, the “bulleted” points he posted were nothing more then comments about a General Business model developing around an infant stage technology. What most likely caused concern and the quick price drop was his selling of his shares first and then his “editorializing” with his dramatic verbiage in his opening and closing comment. By the time we could get a response back on the Yahoo board about this being “much ado about nothing” the damage by technically “breaking down the stock” was already done. The irony is that what he said help further confirm what we had been fining in other articles that QBR, rather than “Plug In with Quick Charge” is going to be the “Standard”. Since KNDI was the pioneer in this concept back to 2003 when Mr. Hu filed the first patent, this decision alone is tremendous news for KNDI.

    What he is referring to below is the bulky robotic arm and the large box like batteries you see in this link. Something that might make some sense for a larger SUV, but certainly would never work with a small Electric Mini car.

    translate.google.com/t...|en&u=zjnews.zjol.com.cn/05z...

    His infamous post pasted below:

    “After what I learned today about the Hangzhou battery charge and replacement station I was shock shelled and dazed. I learned it from a person who is involved in the preparation of the Battery charging and replacement standards. I will not disclose as I don’t want to compromise this person.

    - The equipment that you saw in the video that I posted was developed by a guy from State Grid who has devoted his time on this for over 2 years. No cooperation with Kandi.
    The mechanical lift is produced under control of the State Grid, in sub-contracting.
    - There are only 2 car manufacturers that have cars that can be served with this equipment: 1 Haima and 1 Zotye car.
    - Replacement equipment cannot be used for current Kandi models
    - The SGCC charge and swap system only works with Li-ion batteries.
    - The Li-ion batteries that you saw in the video are not standard. They are produced on demand of the SGCC.
    - The current Hangzhou charging station design will be repeated in all 50 stations that are now planned to be constructed before the end of 2011, including the ones in Jinhua.
    Mr. Hu will need to work out a solution with the State Grid that fits the Kandi Models.
    The requirements to sell in Hangzhou and to profit from the subsidies probably forced him to use the Li-ion batteries.

    I am sorry that I have to share this news, but I feel it would be unfair not to do so. I am also very disappointed and frustrated that I had to do all this investigation work because Mr. Hu doesn’t inform the investors in an appropriate way. I have repeatedly asked for more info and didn’t get it from Kandi, so I was forced to find out from other people.”
    Feb 6 09:52 AM | Likes Like |Link to Comment
  • Examining Kandi Technologies: A China-Based EV and Quick Change Battery Company (Part I) [View article]
    Johnny B- Since I wrote this article, the Company has achieved several major milestones. It began first sales in China late Nov. It had a third vehicle approved for sale in China, the KD5011 Lithium battery powered car with longer range and higher speed. It announced a deal with Hangzhou, a city of almost 10 million population to begin initiating sales in Q1,2011. This one of the initial 5 cities where full PRC subsides of up to $9000 per car will be available to consumers and this new car is eligible for the this subsidy. The Company announced its entry into it third Continent, Europe, with an initial order of 1000 cars to be delivered this year in Italy.

    Yes, they did do an equity funding for 3 million shares at $5.50, but whether this was dilutive or not is a matter of perception. IMO, when a Company does a funding at 7 times book value and 25 times operating cash flow, that funding is not dilutive to existing shareholders. If anything, when taking into consideration that in the month since the financing, China has raised interest rates and tightened their reserves twice making debt funding much more difficult, the timing of the funding was either lucky or brilliant.
    At the end of last year the Company had a negative $13 million in Working Capital. When this years Financials are reported in March, I expect working capital to have swung $35-40 million to a Positive $25 million and operating profits should have more than doubled year over year and exceed $10 million.

    IMO, the only reason the stock is now trading at less than a year ago is a combination of indiscriminate prejudice against China Stocks, and poor placement of the 3 million share stock offering. Something that cannot be blamed directly on the Company, more-so its Placement Agent. Looking at all of the volume the stock has traded since the offering (18 million shares or six times the offering amount) and realizing the stock has declined over 20% since the offering should be evidence enough of poor placement. But poor placement is but a temporary event and particularly in KNDI’s case has created a potentially incredible opportunity for intelligent investors.

    While the current stock price is painful and disheartening to some long term holders, the now strong financial position and recent very positive fundamental events, IMO, has now assured the companies foothold as a serious competitor on three Continents in the potential Trillion dollar Electric Vehicle Sector. A current situation that no other public Company with even ten times the current market cap of KNDI, is so well positioned to successfully address.
    Jan 31 08:01 AM | Likes Like |Link to Comment
  • Reverse Mergers: Made in China, Worthless in the U.S. [View article]
    John, I appreciate your ability to be objective in a rational discussion on a topic that many on your side of the market wouldn't take a moment to think about, let alone opine in areas of agreement.

    Perhaps for those who might read my writing here, I should be more clear on my 1 in 20 survival rate for US RTO's. I am including all US RTO's to include Pink Sheet to get to that number. The success rate sticking solely to "Reporting" shells is somewhat better, like maybe 1 in 4 or 5. Still not a number that should engender one to go "all in", however two points should be made about "wading in" on one of these early shell deals.

    Several of those failures need not be attributed to scamsters or fraud, just a business plan on a good idea that for any number of honest reasons didn't make it. Secondly, if one looks at it solely as a pure speculation, has a lot of luck, investing in the single survivor could create a spectacular return. But I again stress, this is only for the nimble or those who can afford to lose that portion of their investment. (I feel I have to add the above because I have been sucked into a few early stage RTO stories myself with less than stellar results for the most part)

    But just as a point of historical interest. Long term success of a Company and its stock doesn't necessarily mean one is safe from ultimate fraud. You may or may not be aware, but one of our own Texas grown RTO's went the full route. Enron to an extent started out as an RTO when Ken Lay brought his Company Houston Natural Gas public by merging it with a shell and again later merged HNG with InterNorth in the 80's to form Enron.

    One last point to get back on subject to this article. If one wants to believe that all China stocks should be avoided due to lack of clarity in numbers or maybe Government risks, I can understand that mentality. But just because a stock came public through an IPO doesn't, IMO, make it a "safe" investment. In fact, buying a "hot issue" after an IPO could be even more treacherous then a well researched, undiscovered and seasoned former RTO, if for no other reason then Price Risk/Reward.
    Jan 18 08:21 AM | Likes Like |Link to Comment
  • Reverse Mergers: Made in China, Worthless in the U.S. [View article]
    John, congratulations on your patience and perseverance in putting your money where your mouth is in your investments. As a fellow Texan, I do the same. And I also feel, maybe even more then you that reverse takeover stocks in their early days are dangerous to all but the most nimble. In my 37 year resume, I venture to say that not one in twenty survive a decade. But I am talking about US RTO's. While a decade hasn't passed for China RTO’s, the jury is still out, but most likely the failure rate will not be nearly as severe. But with this said, you really have not addressed the point I was trying to make.

    You reference a pipe offering that after a year the buyers are free to sell. A time frame that does not require a Registration statement, just a 144 sale for a major holder which could be as little as six months for a smaller holder if at least on the BB.

    With my comment; "I won't question that the road traveling to a Company's first Registration could be treacherous for shareholders,.." I am clearly trying to bifurcate what you are referring to as compared to a more seasoned Company that goes the registration route. But even Registration by no means gives a clean bill of health in any public company domiciled in any Country, but it is a step in the right direction.

    I don’t short stocks. Many years ago I was a OTC Market Maker who had daily dealings with short sellers and I can say affirmatively, that at least in the days of the Uptick rules, physical share delivery and no computer trading programs, there were very few “old and still bold” short sellers. They all met their “waterloo” at some time or other. But with this said, I agree that I have looked at dozens of China stocks over the past couple of years that raised enough questions that I would not consider investing in. But as mentioned in my above comment, I have also been around long enough to know that fortunes are not made by following the herd during times of sector disgust.

    There could be any number of legitimate reasons why a China company comes public in the US rather than China. Particularly at times in the past when valuations may have been more in line. Perhaps the Company deals heavily in the US and a US listing might be used for marketing credibility. Perhaps the Controlling shareholder is on an ego trip and feels that he and his Company will be looked at worldlier with a US listing.

    I am curious? You seem to be making the assumption that all China Stocks have done early stage financings as soon as they started trading here. I know of several China RTO companies who have been listed here for years and are growing nicely who never did an offering for years? Do you feel they should also be painted with the same brush?

    Anyway, best of luck to you, and kudos on getting such international notoriety with the current Boomberg article. I feel honored to have struck a point that you felt needed to be commented on, and a chance to respond.


    Jan 16 01:52 PM | 2 Likes Like |Link to Comment
  • Energy Storage, The Valley of Death and the Elephant Hunters [View article]
    geronimo-I couldn't agree with you more that KNDI is being manipulated. The question is by whom? You don't think that someone with an agenda encouraged the recent story about the people who were involved in bringing KNDI to the US? You don't think that the massive increase in unexplainable downside volume well under its recent financing price of $5.50 was vastly contributed by short sellers who knew some type of manipulative story was coming? You don't think that the final comment about "more to come" isn't a manipulation to keep uncertainty in the minds of investors? The irony is that I don't think that those with an agenda were expecting the writers to be so honestly kind to KNDI the Company. But why not? Perhaps it was because there is nothing negative to say about the Company. Note that Cuban is no idiot. He is not short the stock.

    KNDI has been trading for 3 1/2 years. The stock was as high as 7.40 in 2008, as low as .46 in 2009 and as high as 7.20 recently. During this time it has traded some 70 million shares. Other than the guy who writes their PR's, none of the rest of the Investment Bankers (promoters according to the article and you) has had any contractual arrangements with the Company for the past 1 1/2 years. Use a little common sense. Sure they received a piece of the Company instead of cash for finding, grooming and bringing the Company public in the US. Existing shareholders should be glad they found KNDI. But do you really think that if their intentions were to bring over this Company just to scam US shareholders that any of them would still be in the stock today? Do you really think that the SEC would have cleared not one, but TWO SEC registration statements if there wasn't an overwhelming preponderance of the evidence that KNDI was a legitimate company? Doesn’t it make you wonder who the shorts are trying to protect you from?

    Do you really think that China’s largest PRC owned utility company, State Grid would “partner up” with KNDI and allow their name to be used in several PR’s without having done some serious DD on the Company? How about those subsidies? Do you really think local and National Governments in China would “fast track” approvals on not one but THREE EV’s in just the past year and also give the Company subsidies? Do you think that Mr. Hu, the CEO and 50% shareholder that pays himself $23k a year and has been personally guaranteeing over $20 million of the Company’s debt, not because he has to, but because it gives them a lower interest rate, would be doing this if he were running a scam? In the US, companies like TSLA borrow a half billion from the Government and their stock goes to $3 billion market cap. If the Company fails? Oh well, another hit to the US taxpayer. In China you don’t scam the Government. I know of no other US China trading Company being maligned that is so closely tied to the Gov. I know Mr Hu likes silk ties, but I suspect he would not want to see himself wearing a hemp rope.

    Obviously they came after me personally. And why not? As of the last short reporting period, the reported short is about the same as it was six months ago when the stock was trading in the low $3’s. So this is definitely becoming a problem stock for the shortsellers. Since I wrote my first SA article in Sept, the stock more than double. Why; Because I increased the audience. Did I do this by spouting hyperbole? I think not. If you read all of my articles, you will note that I go out of my way to put in links to back-up material. Mostly Google translated articles about KNDI in the China Press. So of course they are going to dig up information about me that is decades old to shut me up. (obviously it didn’t work) But I have made it easy for them. All of the information they found on me has been posted and discussed numerous times over the past years on KNDI’s yahoo chat board where I post under the one and only boardname I have had for some ten years “corstrat”. I have also posted my phone number over there at least a dozen times, but for some reason I never did get a call from the article writer. Within minutes of being aware of this article as a comment to my most recent SA article of which the writer did me the honor of posting the link, I responded to my part of the article and again posted my phone number for anyone who cares to discuss either me or KNDI. If you haven’t seen my response, I suggest you do.

    seekingalpha.com/artic...
    Jan 16 12:27 PM | 1 Like Like |Link to Comment
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