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Arthur Porcari

 
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  • Behind The 'Kandi Machine': China's Sweet EV Solution [View article]
    Mukticat- So what you are saying is that KNDI as a speculation should be ignored, like, I assume you ignored TSLA when it was trading at $25 just before significant sales began?

    BTW, I suggest you read the article and look at the video. The least you should do since you feel the need to comment.
    Nov 22 10:20 AM | 15 Likes Like |Link to Comment
  • 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
    http://bit.ly/Zj5Xc9

    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 03:28 PM | 15 Likes Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    Gerald- Apparently Citi's China Affiliate Orient Securities investment banking director Qi Hongwei agrees with you. He put this Industry report out yesterday in China which clearly favors KNDI with a "Buy" recommendation and mentions it 12 times, considerably more than any other manufacturer trading either in China or abroad to include TSLA which he included in his heading:

    Mini electric cars: Tesla's brutal Chinese-style growth

    http://bit.ly/1sNavDA
    Aug 12 10:07 AM | 14 Likes Like |Link to Comment
  • Kandi Technologies: A Call For More Clarity In Financial Reporting [View article]
    In response to recent skepticism regarding KNDI's financial reporting, as a 40 year full and part/time Wall Street Pro and seven year follower of the Company who also has made two personal Visits to the Company in China over the past 3 1/2 years, I took the time to, to clearly explain why I fully believe KNDI's filings are above-board and accurate with this below titled article earlier in the week:

    "Kandi Tech: The Real Truth About China's Currently Uncontested #1 Pure EV Developer"

    http://bit.ly/1Ayeycp

    Henry, I assume you have not read this since at least some of your concerns were answered.

    But other areas you mention that are not covered include the section of your article where you state:

    "I cannot find any reason throughout the 10Q/10K filings to explain such fluctuation. I GUESS this could be due to any of the following reasons,"

    Amazingly, you did a pretty good job answering your own question. At least in your first two bullet points. 2013 did include older lower priced EV's which were all two door and a large portion Lead Acid battery cars sold in Jinhua for the Quick Battery Exchange program, but without a battery. The local power authority provided the batteries. Now in 2014, with the KNDI/Geely JV and the new CarShare and Long Lease business models initiated in 2014, KNDI is also responsible to provide the batteries with the semi-completed cars (EV Products). This increases the average price per vehicle some 30-40%.

    Your concern over Government Grants is not surprising, unless you realize that KNDI has received very little in the way of Government Grants over the years. The Company has been developing its stable of more than 10 simple EV's over some four years using their own resources. (Something of a surprise to US investors who have watched our Government blow billions on grants). These cars and trucks developed by KNDI are not "rocket science" they are simple inexpensive Electric Vehicles.

    If you consider Government Subsidies the same as Government Grants, remember, the JV only just received its first subsidy check a couple of weeks ago. But don't be looking for this as a line item in future KNDI 10K's and Q's. The subsidy is paid to the JV. How this inures down to KNDI is by providing the JV with all that additional cash to purchase continuously increasing amounts of KNDI EV Products and parts.

    Some of this also ties into your third concern. Why so little R&D expenses. The answer is for the same reason. They have been slowly evolving their EV's over the last several years. I drove my first KNDI EV in Jinhua China in Nov. 2010. It was basically the same two door EV they have today. Maybe a few cosmetic changes and better batteries (which are provided by independent sources), but basically the same EV. While there has been a increase in R&D the last couple of years, it mainly had to do with converting a four door Geely Panda, which has been on the road as an ICE car for years, but the conversion was not that difficult or expensive.

    KNDI has its Q2 14 10Q scheduled for release on Monday Aug 11. As I mention in my article lined above, I am expecting a very robust quarter in both record revenues and positive earnings.

    I strongly suggest that anyone who has any concern about KNDI and its reporting read my recent article linked above.
    Jul 30 08:34 AM | 14 Likes Like |Link to Comment
  • Short Kandi: A Misplaced Bet? [View article]
    So what you are saying is most of your comment is typos? That makes sense since most of your comment is totally wrong. But mainly, there have been at least 30 attack articles written about KNDI yet not one has ever accused the company of even doing anything illegal, let alone fraud.

    Re SEC? Only one investigation that KNDI has been involved with, but KNDI, though not required, did something most company's don't and reported it in a 10K. Again. There was NO REQUIREMENT for them to say anything. Do you think that TSLA has not been a party to some SEC Investigation? At some point in time, virtually every listed company is involved in some sort of SEC investigation.

    But what is important is that just a week ago, the SEC declared "Effective" a registration statement for the issuance of new shares underlying some 2010 warrants. Do you really think the SEC would allow KNDI to put out new shares if there was any significant problem with the Company?

    BTW, they never reported Go Cart sales as EV sales either.

    I notice that you have only made 30 comments during your SA membership. Suggest you work a bit harder to put out some facts in the future so you don't look so ridiculous.
    Jun 18 12:07 AM | 14 Likes Like |Link to Comment
  • Behind The 'Kandi Machine': China's Sweet EV Solution [View article]
    Mukticat- You have been the first to attack just about every Seeking Alpha article on KNDI since the stock was in the $3 level earlier this year. You were wrong then, you are wrong now. Intelligent investors have no problem seeing through your obfuscation

    Anyone that knows about KNDI the stock, knows that it has a huge short interest of over 4 million shares reported. And to top it all off, for the second time in less than three months, it is now again on the SEC Reg Sho list because at least 190,000 shares have been "Failing to Deliver" for at least 19 days. That "At least" 190,000 shares does not include the 4 million primary reported short. It is stock that has been officially recognized by the SEC as having bee "naked shorted". That means it is subject be be "forced Bought In" very soon.

    http://bit.ly/1aCS9hC

    Note that there are only around 25 NASDAQ stocks on this list. The fact KNDI has been on it twice in two months shows what a mess the short seller has gotten himself in and must attack great articles like Aaron's in order to dupe even savvy investors into thinking the article is no good. Notice that the stock was up .10 before the article came out. But within minutes, well before anyone would even have time to read the article, let alone see the video, the stock came under attack. Just like you attacked the stock before you even had to read and look at the video.

    The last time KNDI first came on on the Reg Sho list was Sept. 13. That day the stock closed at 5.35. Eight days later the stock hit its all time high of 9.20 on very heavy volume. All that time the stock remained on the Reg Sho list only to come off twelve days later. And at that time the reported short was only 3.2 million shares.

    I covered this more in depth in a recent Seeking Alpha Article titled "Kandi Technologies: Is Kandi's Short Seller A Dead Man Walking?"

    http://seekingalpha.co...

    In that article I described what underhanded tactics a short will do to defend his position. But Just like in the case of Tesla when it was at 30 dollars last Spring, a good company will always beat a short. And investors who are smart enough to realize this will take advantage of the artificial stock the short creates for them.


    Nov 22 10:57 AM | 14 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 08:37 AM | 14 Likes Like |Link to Comment
  • Kandi: Experts Weigh In On China's EV Market [View article]
    Dave T. Kandi doesn't sell EV's to consumers, it sells them to leasing companies who in turn with the Government Subsidies lease them for up to 36 months full turnkey to include free unlimited battery exchanges, insurance, parking and licence. They have a current standing agreement with the City of Hangzhou to lease up to 20,000 ev's by the end of 2014, and starting this month.

    The also rent EV's by the hour in a carshare program for 3.25 an hour. They expect to have at least 5000 in service this quarter now that subsides are in place.

    Pearson knows all this since both are covered extensively with back up links in the specific articles that pearson keeps accusing us of pumping, yet he chose to ignore it the major difference between KNDI and others.and will not respond to comments about these items.

    Use common sense, China has spent over $3 billion dollars just the past two years building an EV infrastructure. Do your really think they are going to abandon this desperately needed solution to their pollution problems and high demand for petrol at this stage of the game. Of course not. They are going to support measures such as KNDI provides to get the job done.

    It should be very clear that as a self proclaimed short seller in KNDI, that he must be reaching desperation levels since this is his third attack in less than two weeks. (two this week)

    Remember, KNDI has a reported short position of 3.3 million shares now, up more than three fold since his two attack articles back in June.
    Oct 4 11:58 AM | 14 Likes Like |Link to Comment
  • Short Kandi - The Wrong Road? [View article]
    Jerry, great article. FYI, while KNDI took a fairly large drop on last nights bi-monthly reported short interest of some 550,000 shares, don't think for a second it was because the recent large short seller was giving up. In fact the actual short during that period escalated somewhat and greatly over the last ten days.

    The reason the short dropped this last period was likley purely technical having to do with a June 6th "Effective" ruling by the SEC which cleared the underlying shares for some 1.15 million warrants that were not registered. As I posted yesterday on Stocktwit, I was expecting something between flat to down a few hundred thousand shares. I expected this because it was reported by the Company in their Q1 10@ that surprisingly some 800,000 of those warrants had already been exercised by that time. Though they were exercised, the shares the funds received were still not registered until June 6.

    These warrants were part of a 2010 financing that was placed with two "transactional" hedge funds. The transactional part means they were not Investment funds, but instead funds who take down issues to turn a quick, usually "hedged" profit. The only way I could imagine they would have exercised those 800,000 shares prior to SEC clearance, would be by shorting the stock in the 1st quarter and borrowing shares at that time to protect against a buy-in. Once the underlying shares were cleared for sale, what happened was the funds gave back the borrowed shares and delivered (covered) their short shares with the newly cleared shares.

    More likely than not, were it not for this hedged cover, the short would have gone up significantly. I say this because I believe the TA funds covered, (and delivered) the whole 800,000 shares, but the reported short only went down by 550,000.

    If you look at the graphs on this link, you will note that over the last week or so, the gross inter-day shorting reached an incredible peak of 48% and an average of 45% on the 7th, 8th and 9th. Three days where the total volume exceeded 6 million shares. Anytime gross shorting is above 30% you can bet the net shorting is plus for that day.

    http://bit.ly/1y42DRx

    Further evidence that the short has grown recently is a tightening of shares available to borrow. six weeks or so ago, Interactive brokers had well over a million shares available to borrow. On Wednesday it got as low as 30,000 shares and today it is at 150,000. When you consider at least 800,000 shares of the recently cleared registration has been added to the borrowing pool in just the past three weeks, the "tightness" is somewhat amazing.

    http://bit.ly/1y42BZM

    Late last year when the stock was much lower along with the reported short, I published a SA article "Is Kandi's Short Seller A Dead Man Walking?" IMO, this trapped short has now passed that stage and is now a "Zombie with a bank account"

    http://seekingalpha.co...

    With the matching half from Hanzhou re. the recently announced $31 million subsidy expected any day now, and since we know KNDI has already produced over 3000 EV's in just the first two months of Q2, alone matching the total sales relative to the first subsidy payment, it is likely the total subsidy the first half should exceed $100 million. Or to put that in perspective against TSLA, based on KNDI's $600 million market cap vs. TSLA's 28 billion, a $100 million half year subsidy would be about equal to TSLA getting around a $5 billion subsidy. (What do you think that would do to TSLA's price?)

    I think the next 30 days up until KNDI announcing earnings on Aug. 11, should get quite interesting.
    Jul 11 12:45 PM | 13 Likes Like |Link to Comment
  • Behind The 'Kandi Machine': China's Sweet EV Solution [View article]
    Mukticat- for once you provided a Productive Link to an article. But like in this case, you are too lazy to read the article you linked to.

    The article you linked to gives all of the reasons why China Consumers are not ready to buy cars, and it is exactly those reasons why KNDI, who does NOT sell cars to consumers, but only to leasing and rental companies, who in turn with government subsidies, all but give away small EV's for China consumers to use that Geely came to KNDI and its CEO to lead Geely's move into EV's.

    But then again, you would have know this if you would have taken the time to read the Aaron's article.
    Nov 22 11:04 AM | 13 Likes Like |Link to Comment
  • Kandi Set To Surrender Gains Again [View article]
    I find it interesting that Mr. Pearson picks the start of the week long Chinese Holiday to attack the Company. Knowing that even if the Company felt a response was necessary, their would likely be no one around.

    If anyone is curious why I am refraining from defending his false claims against me in this article, it is because I did so at length in his last 3 articles and I am not going to waste my time or serve his ego by wasting time on doing it again.

    I post under my own name because I am proud of the work and homework I do for free helping investors. If anyone would like to give me a call to discuss any subject addressed in this article, here is my personal phone number 281-614-1792

    But to any common sense investor who might be prone to act on this article I would like to leave you with this quote.

    "If you can't attack the Message, then attack the Messenger"

    He has personally attacked me three time and ShareSleuth has six times on KNDI hit articles. He talks about positive writers on KNDI? What about the 20 plus hit articles paid for by short sellers.

    Yes, I have only written SA articles on KNDI. Why? Because it is the only Stock that I feel, and have felt over the seven years I have followed it, that I feel 100% positive to speak intelligently about. And do look at my bio by clicking on the picture atop this comment. I have been a Wall Street Pro for forty years now, So I do know how to do a solid Due Diligence on the Company.

    He wrote this article out of tangible fear that over the balance of this year, now that the China Subsidies have been brought forth, KNDI is looking at as much as $100 million in sales for the last half of this year. Almost a quadruple of the first half. They will also likely earn between $.55 and .65 per share. Next year, at least $350 million in sales with over $2 a share in earnings.

    A last statement of FACT.

    NEVER ONCE HAS ANY ATTACK WRITER EVER ACCUSED KNDI OF ANY TYPE OF FRAUD, OR DOING ANYTHING ILLEGAL. .
    Oct 1 12:05 PM | 13 Likes Like |Link to Comment
  • What The Market Missed On Kandi [View article]
    Now that I have time, lets go over your lies one at a time.

    "Mr. Porcari's relationship with Kandi dates back at least 6 years to before its reverse merger in 2007. He has accompanied management on multi-city road shows to introduce them to investors. He has approached the company to try to raise money for them from his investors. He is in the process of trying to get a brokerage firm to publish research on the company. Now his investment banking company is also sending out promotional emails on the Kandi. Mr. Porcari told me by phone that none of this is for business purposes, because he is retired."

    I have never accompanied the Company on any road show, and certainly never tried to assist them in raising capital. Since I am just a retired former broker, I don't have any license or desire to raise money.

    I have never sent out a promotional email and in fact won't own a stock that uses promotional emails.

    I have no Investment banking firm and haven't had one in over 25 years.

    I would certainly welcome any legitimate analyst to write up the Company. And if any want to call me and get the real facts, here is my phone number 281-614-1792. As compared to you, I do know my facts about the Company.

    KNDI is the most incredible investment I have seen in my forty years, and I would recommend it to anyone.

    You do realize, you are not the first to try to attack me. If investors are so dumb as to believe lairs like you who are so desperate on options expiration day to totally fabricate lies about the Company, they don't deserve to be in this stock. Truth always wins out.
    Jun 21 12:00 PM | 13 Likes Like |Link to Comment
  • Guanwei Recycling Corp. And Kandi Technologies Group: The Rui Wang Connection [View article]
    capt- While I respect anyone's right to Free Speech, this author follows the same MO as most other attack specialists in refusing to respond to comments in his article.

    This is what bothers me the most about SA allowing this. These writers feel they have a right to spread whatever mis-information, innuendo and out of context material they can conjure up to pray on the fears of innocent investors, but never have to answer to anyone. As a SA author myself, I go out of my way to defend my statements.

    What also bothers me with this author in particular is his continuing insistence that he is not being compensated for his hundred thousand words of attacks over the years against KNDI. SA has a standing rule that authors are not to be compensated for writing these articles, yet this author who is admittedly supported by Marc Cuban, a self-proclaimed short seller in other issues is allowed to continue.

    Amazingly, his boss recently beat the SEC in a long expensive battle when they charged him with Insider Trading. All the while he went out of his way on any related venue that would hear him to proclaim his own wrongful prosecution by the Commission. One must wonder how well he would have done if he didn't have millions of dollars to fight the Commission.

    From the WSJ..

    Mark Cuban Says SEC Plays Unfair With Evidence

    http://on.wsj.com/1otm7ta

    I am not trying to weigh in on the guilt or innocense, but it seems quite hypocritical to me to let his man attack others based only on possible accusations.
    Jun 3 01:50 PM | 12 Likes Like |Link to Comment
  • SEC Brings Fraud Charges Against Promoters Of China Auto Logistics And Guanwei Recycling; Also Alleges Manipulation Of Kandi Technologies Group Stock [View article]
    Mr. Carey, this is your seventh or eight attack article against KNDI with each resembling each other. You have given misinformation in each of the past articles, and even though you have been corrected, continue to do so.

    Case in point to quote your article.

    "Kandi said in SEC filings and press releases that it sold 5,635 electric cars in that period, primarily in the United States, which was its main market at the time."

    This is either wrong, or a feeble attempt to confuse shareholders. KNDI clearly had not even a mention of having an EV in 2008. At that time they had a small gas powered car that resembled the later developed CoCo EV. While there was some confusion over how KNDI described the two different type of cars in their filings in a table that was not even required to be published, the top and bottom line numbers reported from these sales were accurate as reported in both an 8K and subsequent quarterly and annual filings.

    If you have any evidence to the contrary, I would like you to post it.

    Regarding your "story" about how KNDI stock dropped from the $7 level in 2007 to below a dollar by 2008, did you ever think it might be for the same reason the FXI China index dropped more than two thirds from a high of around 45 to 15 during the same period of time? Or maybe because the whole world was going into its currency collapse. Or its stock price recovery in 2009 while that same FXI index recovered to over 40 in the following 12 months of its bottom?

    I am honored to once again be a feature player in your fantasy conspiracy theory. What is this the fifth time out of some eight KNDI attack article you honored me with notable mention? All the way from your early bashes when the stock was trading below $3 to the current. And always the same historic minutia.

    Yes, I have known Roger Lockhart for going on thirty years, back to my brokerage firm days. And yes, we have been in some of the same stocks over the years.

    Re. Host America, at no time did I ever own more than 10,000 shares as a simple lowly investor. I never spoke to it management, and I maybe posted a couple of dozen times on its chat board. And yes, Host America did ultimately go out of business some eight or ten years ago, but while you are trying hard to "paint" some conspiracy, I am at least glad to see that you were honest enough to state that the SEC never brought charges. In fact, the reason they never brought charges is because they discovered that the Press Release that you claim was bogus, turned out to be true. They did have a successful test at Walmart as they reported, but it didn't go any further.

    And House of Brussels. Yes, it to was a penny stock that went out of business and I did lose a sizable amount. However, what makes you think that Roger Lockhart had anything to do with HBSL?

    You are once again wrong in your comment about SPIN. Yes, I am, and have proudly been a large shareholder of SPIN, however, to my knowledge,confirmed by the company, Roger Lockhart, if any, only had a token position of ten or twenty thousand shares in recent years.

    But lets talk about your hypocritical boss that you freely admit pays you to do these type of articles. You know he guy who made it quite clear on any venue when asked that he was being "railroaded" by the SEC over his MAMA stock sale. I read that SEC complaint against him and I can assure all, while I personally thought the Commission was overreaching to make an example, it was written in a much more serious way then anything written about KNDI. The fact that Cuban had more money than god to fight the SEC to a successful end, shouldn't be looked at as if they were wrong in his case and right in the current case.

    But then all of this is just hyperbole. What investors need to concentrate on is whether the company they are invested in is and has been doing the "right thing" in prior several years, not what some promoters did a half a decade ago.

    I personally have visited the Company twice in China and have been an ardent supporter of its CEO from the day I first met him in 2008. If I have one complaint about him is that he almost seems to go out of his way NOT to hype his stock. Forget hype, he seems to go out of his way to report as few positive things happening as he can get away with. How do I know this? because I closely follow the China media every morning using Google Translator. And hardly a day goes buy when new positive revelations appear about the Company in China and we may or may not hear about them here.

    For example. the below link will bring you to an article which lauds KNDI as being the largest Electric Truck manufacturer in China in the month or March having produced 63 EV trucks out of 89 total. What makes this so revealing is that no-one, including myself had any idea that the company had started production of EV trucks in China. if he wanted to pump his stock, don't you think he would have taken advantage of this revelation? Do you think that Elon Musk would ignore such an opportunity?

    Here is an excerpt from and a translated link to that article.

    "..Third, the March special domestic electric vehicle market

    March, before the domestic electric vehicle three companies were dedicated Jinhua Kandi New Energy Vehicles Co., Ltd., Beijing Automobile Co., Ltd. Beijing Hua Lint loading.

    Jinhua Kandi New Energy Vehicles Co., Ltd. is a pure electric vehicle Condi special brand pure electric Frontal;

    Beiqi shares of pure electric vehicles in Beijing dedicated brand pure electric Frontal;

    Beijing Hua Lint loading Limited pure electric vehicle for special Waring brand bottled pure electric garbage truck.

    March three corporate yields were 63, 16, 10."

    http://bit.ly/1qeCv5N

    Or this article that came out today with the following Headline showing KNDI outproduced all other EV makers in China by three times in March: (Condi is Kandi translated)

    "China March pure electric passenger car production topped up by nearly three times Condi"
    2014-05-07 18:00:40

    http://bit.ly/1qeEW8G

    Let me end this by giving you credit for one other thing. You have done an excellent job in exposing KNDI and its CEO to Wall Street giving the opportunity to anyone who looks past your diatribes and seriously researches the Company for what it/he really is. A "Disruptive Innovator" in a potential trillion dollar EV space, that currently is and will likely continue to lead the Worlds largest and most product needy Country out of a deadly pollution problem.

    In my humble opinion, base on performance to date in China; in not too many years, KNDI could be a hundred billion dollar giant. And that will be irrespective of who owns the stock at that time. And to give credit where credit is due, were it not for Kelly and his group, KNDI would likely not be trading as a US stock today and US investors would not have been given the rare opportunity to easily invest.
    May 7 12:34 PM | 12 Likes Like |Link to Comment
  • Kandi Technologies: The Latest Bubble Stock? [View article]
    Mr. Wallace, due to my being away from the Internet for the past 24 hours, I am late in responding to your article and your above "half truth" comment in particular. As a self proclaimed "former fund manager", you either should have known better than to isolate the above statement, or you have given evidence why you no longer are a "fund manager".

    I would like to bring your attention to these two extractions from the recent 10K:


    Change in Fair Value of Financial Instruments

    For the year ended December 31, 2013, the expense which was caused by the increase of fair value of warrants issued to certain investors and placement agents was ($16,647,283), while for the same period last year, the income caused by fair value change of financial instruments was $1,986,063. This significant change was primarily due to a significant increase in our stock price in 2013 and the fact that there were more warrants outstanding as of December 31, 2013 compared to December 31, 2012.

    Share of Profit (Loss) after Tax of the JV Company

    The Company has absorbed a profit (loss) in fiscal year 2013 due to its 50% interest in the JV Company. The JV Company recorded a loss in 2013 because it is still in the start-up phase, though the Company believes it will generate profit in the near future, particularly as demand for our EV products continues to build in China. We believe this is reflected by the fact that if the subsidies receivable from the relevant government agencies for vehicles sold by the JV in 2013 had been paid in 2013, the JV would have experienced a profit instead of a loss; these subsidies are scheduled to be received by the JV in April, 2014. The financial results of the JV and their relationship to the Company's investment in the JV are more fully described in Note 23.


    Based on your implied credential, you should be well aware of the bizarre treatment the FASB gives to treatment of Financial Derivatives such as warrants and options in high beta stocks. Just eight months ago KNDI did an equity financing that had a number of warrants attached. Due to the rapid increase in the stock price and factoring in the length of time remaining on the warrants, a totally non-cash charge must calculated and included in resolving GAAP earnings. As you can see from the above 10K statement, warrants alone added $16.6 million to the GAAP loss. Ironically, had the stock price declined, these same outstanding warrants would have created Positive GAAP income. If the stock would have remained the same price as at the time of the offering, there would have been little effect either way.

    But more importantly for consideration is that these very same warrants were in fact exercised early, the first week of January adding some $27 million cash to the Company. BUT, note the date. Too late by less than a week to be included in the 10K. Both as far as cash and equity reported as well as rescuing the Company from the large "Fair Value for Financial Instruments" charges. While there are still some additional warrants outstanding which will still add some charges assuming the stock continues to increase, the effect will be much less in Q1 and thereafter.

    But most importantly for investors to consider is the second note I inserted above. Of import is not even so much the additional charge to earnings from the JV (which BTW is a real charge to earnings), but two additional factors:

    1) Since the only own 50% of the JV, KNDI cannot consolidate any of the revenues of the JV in the actual KNDI numbers, only the profit or loss. However, I was happy to see that on page F-40 of the 10K, the company did provide an abbreviated Income Statement and Balance Sheet of the JV. Though the JV had only begun sales late in Q3, by year end it had already generated over an amazing $15 million in sales.

    2) Note that the Company states in its comment "...these subsidies are scheduled to be received by the JV in April, 2014."

    Now due to the fact that the PRC has said it would pay subsidies retroactively to Sept. 2013, some sales were made in 2013, likely subsidized by the Company or JV with anticipation of receiving Govt. Subsidy payments beginning in April. But in reality, common sense would dictate that significant sales under the subsidy program would not begin until after April when payments finally arrive.

    I don't question the fact that the stock may retrace its recent move up, just as I would not question if it continued up. It is a high beta (volatile) stock. Where as some such as you might state that the stock is getting ahead of itself, others such as I who have visited the Company and followed it closely and openly for more than seven years, believe it is only now starting to catch up with where it deserves to be.
    Mar 19 06:17 AM | 12 Likes Like |Link to Comment
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