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Arthur Porcari

 
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  • Earnings Season For 10 Clean Energy Stocks [View article]
    You misunderstood the KNDI battery transaction. This is an awesome deal for KNDI. These batteries are being bought from Wanxiang, China's premium battery manufacturer and current owner of both A123 and Ener1.

    The batteries are being bought for the CarShare program, NOT the long lease program, in Hangzhou. In the CarShare program, the EV's are sold to the operating Company WITH the batteries included for around $10,500 as compared to the long lease program, which is what you are referring to with Air Lithium, where KNDI sells the EV's WITHOUT the batteries for around $6800.

    By selling the car with the batteries, KNDI also makes a small profit on the batteries giving them around a 30% margin since KNDI's Yongkand Scrou subsidiary makes the electric motors, generators, air conditioners and controllers for both the two door and four door cars..

    Also, if you noticed the terms of this battery purchase, KNDI only has to put down 20% to take delivery of the batteries with the balance not due until KNDI receives the Subsidy payment.

    From the 8k filing.
    " Kandi New Energy shall pay 20% of the product price within 7 days of delivery and pay the remaining 80% within 30 days of receiving government subsidies for the new energy vehicles into which the Product has been installed and Value Added Tax ("VAT") invoices are issued by Wanxiang, but such payment shall not be more than 180 days from the date of delivery."


    http://1.usa.gov/1aEAc1u
    Nov 19, 2013. 05:00 PM | 8 Likes Like |Link to Comment
  • Autohome Drives Into NY, Beijing Puts On Brakes [View article]
    I assume the below article today is what you are referring to:

    CHINA CUTS NEW CAR SALES BY 40 PERCENT TO STEM AIR POLLUTION

    "..The new regulations will favor electric vehicles and other green technologies in the hopes of stemming the country's worsening smog problems..."

    http://bit.ly/1ejzIlb


    While not surprising to those of us who know the auto industry in China, it should be compelling enough for those who don't to understand why China's current EV leader NASDAQ listed KNDI Technologies. is also a stock to watch.

    Nov 6, 2013. 08:37 AM | 3 Likes Like |Link to Comment
  • Kandi Technologies' Visionary Urban Transport Model [View article]
    bogus07- Actually, Geely has made their 500,000,000 rmb contribution to the Kandi Geely JV as you can see from this statement in their six month ended June 30 financial report:

    "13. interests in a Joint Venture
    During the period, the Group has invested in a joint venture, namely Zhejiang Kandi Electric Vehicles Co., Ltd.
    (“Zhejiang Kandi”), at an investment cost of RMB500,000,000. At the reporting date, Zhejiang Kandi has not yet
    commenced its business and the Group’s interest in Zhejiang Kandi is approximately 50%.

    http://bit.ly/1hWac2C

    However, there are a few items still left to finalize the full transfer of Changxing facility into the JV.

    But aside from this, your comments are accurate.
    Oct 16, 2013. 09:01 AM | 2 Likes Like |Link to Comment
  • Kandi Technologies' Visionary Urban Transport Model [View article]
    robvelez87- While it would not surprise me that Someone on StockTweets might make such a comment due to the large short position in the stock and a small contingent of negative tweets, I could not find any reference to any secondary offering on StockTweets yesterday.

    When KNDI did their last $26 million financing, there were a couple of million warrants attached plus a million or so of some older warrants that expire in Dec. Since that time, the stock has traded over 70 million shares above the warrant exercise prices. It is likely most of those warrants have already been exercised, or at least hedged, giving the Company an additional $20 million or so. Pair all this with an expected $15 million or so cash flow in the second half and as much as $80 million in net cash flow probable in 2014 and you really see no need for additional public financing.
    Oct 16, 2013. 08:51 AM | 5 Likes Like |Link to Comment
  • Kandi Technologies' Visionary Urban Transport Model [View article]
    CSI- While the ZZY JV will receive the subsidies, even without the subsidies the business model for the CarShare is very profitable.

    Here is a translated excerpt from an article written on China's Tram Exchange, China's Premium EV website.

    "Secondly, the three-dimensional garage prescribed eight-hour basis, cycling day rental up to 160 yuan, excluding electricity, insurance, maintenance, labor, space, equipment and other fixed costs, the tram exchange preliminary estimates, about 90 yuan left, with the first of 100 trolley calculations, the net profit of 9,000 yuan cap, as projected, the monthly net income 27,000 cap, but the annual net profit of more than 300 million."

    http://bit.ly/1hW8xKB

    What the author (who in this case happens to be a co-founder of Tram Exchange) is saying here is that based on just 8 hours usage per EV per day @ US$3.20 per hour (garage available now 24/7) Each car should net after all expenses about USD$440 a month, or around USD$5300 a year.

    Now throw in the subsidy and the cost of the car and battery purchased from KNDI to the JV drops from around US$10,500 to around US$3500. An incredible margin that would be the envy of any US car rental company.

    In addition to KNDI receiving $10,500 per car, as I mentioned in an above comment, while KNDI reported up to 10,000 EV's in the carshare program by mid 2014, and 100,000 by 2018 in Hangzhou, ZZY (which KNDI's share is a carried 9.5% interest) could be looking at over $55 million in net profits annualized by mid 2014 and $550,000 million a year in 2018.

    Now you know why KNDI was able to attract outside venture capital to provide almost unlimited capital to build and operate the garages even before the subsidy program was announced. .
    Oct 16, 2013. 08:47 AM | 4 Likes Like |Link to Comment
  • Kandi Technologies' Visionary Urban Transport Model [View article]
    In case any reader is wondering why the stock has been hit so hard with selling after its million share, first half hour run up after this article was published. Be aware, KNDI, as was the case of TSLA, has a very large and growing reported short position. It has increased five fold since June to a last report of 3.7 million shares short. And as Daryoosh refers to in his article, this increase can be correlated to a number of Attack articles on KNDI by writers who have not taken the time to visit the company and get the real story.

    Today's reversal should nt be totally surprising in that it does not behoove a short seller to allow such a powerful confirmation of KNDI's growth and legitimacy, such as this article, to gain traction among common sense intelligent shareholders.

    I describe the tactics short sellers use when shares become scarce to borrow in a Seeking Alpha article I published on KNDI last month. It is titled "Kandi Technologies: Is Kandi's Short Seller A Dead Man Walking?" Here is a link should you care to view it.

    http://seekingalpha.co...

    If you like the story and potential of KNDI, then I suggest you use these attacks to your advantage.
    Oct 15, 2013. 03:22 PM | 7 Likes Like |Link to Comment
  • Kandi Technologies' Visionary Urban Transport Model [View article]
    Daryoosh- Very well done, but not surprising based on your last article and as a fellow member of the group who visited the Company.

    Just to be clear to those skeptics you refer to who have chosen to attack me in their past articles since facts were not conducive to their articles; since leaving you and Aaron in Hangzhou for my return to the States on Sept. 28, we have had no interaction or discussion on the content of this comforting and accurate article.

    All I care to add, addresses your very conservative delivery of the Hangzhou CarShare program. Just to remind, at our first day lunch with Mr. Hu, I asked if he still felt the ultimate potential for KNDI EV sales into the Hangzhou program would be 100,000 units. He quickly confirmed this over then next four to five years. On a followup question, I asked how many "CS garages" did he expect this would take? He answered "up to 1000".

    Re. the "development plan book" you referred to; he stated that the 112 locations outlined in the book were sites approved and provided by the City of Hangzhou to date and was being added to on a regular basis. I asked how long he expected it to take to build out just the ones in the book? He speculated over the following twelve months or so.
    Oct 15, 2013. 08:37 AM | 14 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    Icandothis. For whatever reason, SA has taken the unusual step in not allowing comments to be instantly posted on this article. I asked them to not do this, but they feel it is best.

    I suspect that is the reason the comments are much less and being posted slower than on my prior articles.
    Oct 9, 2013. 09:59 AM | 2 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    robvelez- Yes, we did briefly talk about Mr. Hu coming to the states in the next few months for a Shareholders Day. Obviously it is his top priority to get the two programs fully kicked off now that the subsidies are in place, but he did say he would come, here, likely to NY this time before year end.
    Oct 9, 2013. 07:32 AM | 1 Like Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    Tesla, Hard to tell, but the article I took the pick from said it was the smog that closed down highways and the airport.
    Oct 9, 2013. 07:32 AM | 2 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    shefyim18- I was told the applicant list is considerably higher than 6000 now. For sure he want to expand the Long Lease program to other cities, but unquestionably, his carshare program is top priority.

    The one point I agree with in Pearson's last hit article is that there is a reluctance to be first movers in buying EV's in China, just like the rest of the world. However, his article had nothing to do with KNDI's business model. If I had to pick one stunning new revelation out of the trip it was this; KNDI's business model has now evolved to where they will not be selling cars to consumers. Directly, or indirectly. (You will be hearing a lot more about this fascinating, exciting and brilliant revelation in Part 2)

    The business model for each city starts with the installation of a CarShare program, expected to be shortly followed by a Long Lease program. As Mr. Hu said. He can develop this model throughout the major cities in China at a very fast pace, passing the million EV per year mark very quickly. That is the reason why they already have an even more technologically advanced facility with 300,000 potential capacity already under construction in another province and will soon start construction in a second and even larger Province. By 2017-18, Potential capacity should exceed one million EV's per year.

    But as I don't want to give up all the goodies here. Wait for Part 2.
    Oct 9, 2013. 07:32 AM | 6 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    Illluminati- as of the 2nd quarter filing, KNDI has now fully paid their 500,000 rmb ($80 million US) share in the JV. Yes, part was with their contribution of the Chenxing Facility, some in equipment and the balance in cash. And as I said in the report, they did it all without access to one dime of the $26 million financing.

    If you look at the last quarters balance sheet, you will see the Company's working capital position went from a positive $44 million in Q1, to a negative in Q2. As I said, they not only paid off their full requirement for the JV, but also increased inventory by $10 million and Advances to Suppliers by $31 million. As you can see from this line in the Q2 10Q (pg9), the Proceed from the stock issue were not booked until July 1, which will show up in the line item on the Q3 filing.

    "On June 26, 2013, the Company entered into a Securities Purchase Agreement with certain institutional investors (the "Investors") that closed on July 1, 2013 pursuant to which the Company sold to the Investors, in a registered direct offering, an aggregate of 4,376,036 shares of our common stock at a negotiated purchase price of $6.03 per share, for aggregate gross proceeds of approximately $ 26,387,500, before deducting fees to the placement agent and other estimated offering expenses payable by the Company"

    They were able to accomplish all of this based on both the Company, and its Founder CEO Mr. Hu's good credit. As, I mentioned, and you can see in the 10Q, he personally guarantees most of the debt.
    Oct 9, 2013. 07:31 AM | 2 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    Steve, as I alluded to in my last paragraph, the quickest and best route to exceptional growth for China would be to get as many consumers in an inexpensive enclosed four wheeled vehicle. China right now on a passenger vehicle, per capita basis is around 55 per thousand. About where the US was in WWII. Today the US is at around 900.

    As long as 95% of the population is still limited to scooter, bike or foot, they PRC will have a difficult time getting the average consumer to unlock China's incredibly high 30+% personal savings rate. This compares to around 5% in the US.

    if you put them in a nice enclosed car for either 3.25 per hour, or 145 per month, that disposable income will start converting into consumer discretionary items much larger than can be carried on a bike or scooter.
    Oct 9, 2013. 01:57 AM | 5 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    captain- On a non-gaap basis around .70 a share. To hard to guess GAAP since we don't know where the stock is going to end the year. If it is higher, gaap earnings will be lower. If lower, gaap earnings will be higher.

    Look at the first half of 2011. Stock was way down, GAAP was .30 a share while non-was around .02.

    Never could figure out the sense in it, but blame the FASB for the confusion.
    Oct 8, 2013. 11:35 PM | Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    CC- I am not overly familiar with BYD EV entries, mainly because they are clearly not a competitor with KNDI. TMK, they only have one passenger ev, the e6 which is a full size sedan with a range of around 120 miles. Cost around $40,000 US.

    They have had this same car on the road for maybe five years. It appears their strong suit in EV's is in Electric Buses. They even plan on building an Electric bus facility in California.

    Certainly as an ICE manufacturer, what little they sell in cars could cannibalize from their ICE sales. And taking all the rest of their battery revenues in consideration, they would really have to figure out how to sell many tens of thousands of their EV cars to even make a dent in their overall financial statement.
    Oct 8, 2013. 04:50 PM | Likes Like |Link to Comment
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