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Arthur Porcari

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  • Kandi Continues To Impress Investors [View article]
    Jacob, very good article. I am most impressed that you picked up and put out this line in your article: "Starting this year, China will be increasing the subsidies it offers for electric cars."

    I believe, Contrary to what most investors think, while the subsidies were announced last year, initial payments by the Government have yet to be made. Looking at the 10K pg. 32, it appears that the Company is expecting the first payments to be made in April. (this is the first time I have seen the Company publish a payment date)

    "...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."

    Now since the PRC Government has stated that the subsidies will be retroactive back to the 2013 announcement, it is likely the Company did in fact sell cars in anticipation of getting the subsidy, this in turn helped spur sales in 2013. However, the likelihood of a much bigger jump in sales will begin after the first Subsidy checks are received seems obvious which should set up a very impressive 2014 and beyond.
    Mar 19 01:12 PM | 8 Likes Like |Link to Comment
  • 3 Billion Reasons Why Tesla's Gigafactory Will Be A Bloodbath [View article]
    John, Happy to hear your response. Just a thought. With KNDI's new high investor profile, perhaps an SA piece on KNDI might be appropriate if for no other reason than to quiet those who wrongly believe that you are just 100% against the EV concept in general.
    Mar 3 08:20 AM | 8 Likes Like |Link to Comment
  • 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."
    Nov 19 05:00 PM | 8 Likes Like |Link to Comment
  • Does Kandi Hold China's Solution To An Impending Consumer Mobility Crisis? [View article]
    Regarding the stock action this morning. Just a reminder that KNDI has a very large short position reported. 3.3 million shares as of the last short report. That may not look too large, but remember, very few brokerage firms allow KNDI, as a China stock, on Margin. So there are not a lot of shares for a short to borrow. (Brokerage firms are only allowed to lend shares on margin) Last week, most of the days there were none to borrow when I checked with Schwab and Scottrade. Other that I had check came back with either none available or a small amount at rates of up to 97% rental interest. So taking this into consideration, it should not be surprising that the short seller is attacking so hard today.

    But, IMO, here is the reason for today's attack. Last week when I put out my SA article addressing Richard Pearson's personal attack against me, I made it clear that I would be putting out SA articles on my trip.

    I suspect the short seller was prepared for this, fore the second this article hit on Yahoo finance, the bids started getting hit hard. So hard that within 30 seconds, the stock was already down over .25. Now we know that no-one even had time to read the headline, let alone the report in so short a time.

    As and old OTC market maker who has worked closely with short sellers, there is an old strategy that usually works for at least a short time. "The better the article or PR, the harder it must be hit immediately" This is done to both demoralize excited longs, and give the impression of buying on the rumor, selling on the news.

    If you took the time to read the article, you would quickly realize that KNDI is now just a heartbeat away from reporting some incredible events. When you read my followup article (I am not going to telegraph its release, you will know just how really close this is about to happen. If you were short 3.3 million shares, it should be obvious that you need to scare out as many sellers as possible before that last move up to $9.20 just looks like an "uptick".

    What I am more confident than ever after finishing this trip is that this stock could, and should go to triple digit equivalents over the next few years. TSLA proves that can happen. But it is going to go there no matter who owns the stock at that time.

    So if you want to sell out of fear, or buy as an opportunist, the choice is yours, but this stock is going to go higher sooner rather than later, IMO, no matter who owns it.
    Oct 8 02:56 PM | 8 Likes Like |Link to Comment
  • Kandi: Experts Weigh In On China's EV Market [View article]
    Jte- The CEO already owns over 40% of the stock and did in fact buy some 35,000 shares a few years ago with cash he had in the US. It is not easy for Chinese Nationals to buy US stocks unless they have cash Off-shore. While most Chinese executives do have such off shore accounts, due to KNDI's heavy involvement with very high level Government entities, he would rather not set up an off-shore account which is looked at with the same jaundiced eye in China as in the US.
    Oct 4 12:42 PM | 8 Likes Like |Link to Comment
  • China's Electric Vehicle Subsidies: Winners And Losers [View article]
    I just returned Saturday night from a one week visit to KNDI in China, along with SA author and Urban Planner Daryoosh Ardilan, Washington DC based Documentary Producer Aaron Rocket, a couple of more shareholders as well as two Institutional Buy Side analysts. All were amazed as to the advances KNDI has made since I last visited the Company in Dec. 2010.

    I will be publishing a article on Seeking Alpha on the trip with pics and video in the next few days with a full report. But suffice it for now to say, now that the Subsidies have been formally introduced, KNDI should triple second half revenues to around $80 to $100 million and add $.55 to .65 a share to earnings for this year. Next year, at least $350 million top line and $2.20 a share bottom line for 2014.
    Sep 30 03:02 PM | 8 Likes Like |Link to Comment
  • Kandi Technologies: Let's Try The Truth For A Change [View article]
    Incredibly well crafted Article. Would have been better if it could have come out an hour before the market open so investors would have had a better chance to absorb all the true facts. A very appropriate headline.

    I assume you must have submitted this to SA before Goldman raised it's target on TSLA. Lately is has been difficult to get SA to publish any pro article quickly.

    But looking at the stock performance in the half hour since the article came out, it now appears that more an more saving investors are getting it read and acting on it.

    While this might not set well with the short sellers, this article should have extensive "legs".

    Great Job.
    Jul 17 11:04 AM | 8 Likes Like |Link to Comment
  • Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
    Since you decided to take a mulligan on your Forbes article, I decided to put up the same comments I made on Forbes. Big difference with SA, is that you can't hide my comments like you did there. Here is my first comment.

    Different from you and sharehsleuth, I have taken the time and spent my personal money to get to know KNDI’s CEO, Mr. Hu. both in China back in late 2010 (around the time that both you and sharesleuth ceased finding “problems” with irrelevant facts cared about today), and also in Atlanta when he openly invited all shareholders and interested parties to visit with him for a Shareholders day. Aside from that, I also took the time over the years to visit with him on the phone.

    While I will admit he at times seems to hold his cards a bit closer to the vest than must US investors are used to, in hindsight seeing all of the incredible accomplishments he has made in jumping to the top of the EV heap in China coming out of no-where with his wonderful company tells me he played it Just Right. (Who in the EV arena would give their right arm to have Geely, China’s #1 Passenger car maker ask their small company to lead their entry into the EV space?) And I am no “spring chicken” at this. With my 40 year background having helped as many as 100 young companies enter the public market place both from my Merrill Lynch and personal brokerage firm ownership days, I can unequivocally state that no CEO is flawless. But as far as honesty and the best interests of shareholders are concerned, I have never met a more sincere CEO. This man, from inception to this day, has personally guaranteed KNDI’s bank debt, not because he has to, but because it get the sharheolders a lower interest rate. (I wonder why the ShareSlueths of the world don’t ever mention this).

    Considering prior to early 2011, there was no-one at KNDI in China that spoke a word of English, the few flaws that did materialize during that time should not only have been expected, but in much larger quantity. I would like to see what any of the naysayers filings wold look like If your company listed in China and had to do your filings in Chinese.

    I know you have been working on this piece for at least three months, while watching a few of your favorite stock burn out. If this is your worst shot against the KNDI, then I am even more confident, KNDI will be an incredible winner, and likely by year end. I guess what I don’t understand is why you wasted so much time to put out such an irrelevant piece? Hopefully, your article does draw significant new viewers who will take the time to do their own DD on the Company and stock. All publicity is good publicity if the Company has the “goods” and KNDI unquestionably does have the goods.

    Regarding their S-3 filings. I would think you would have been impressed that any China Stock would have the guts to subject themselves to the new SEC rules covering Chin issuers. I sure don’t know any other China small caps that have done this. And even more impressive, they cleared SEC registration in an incredible short time of only five weeks. Faster than most US companies.

    I totally agree, this stock will go much higher before they do any offering. Likely in the double digits, After all, the last time they filed an S-3 they didn’t pull the trigger on the S3 until 14 months later after the stock had gone up 150%. When it was filed, I spoke with Mr. Hu the next day and asked him whey he filed it? His answer was, KNDI pretty much always had an active S3, just like 90% of listed Companies, he asked whey should KNDI be any different? “KNDI has nothing to hide from the SEC”
    Jun 10 03:39 PM | 8 Likes Like |Link to Comment
  • While Tesla Heads Into The Valley Of Death, Kandi Has Already Crossed [View article]
    KCN- Your third paragraph makes sense in general, but not in the argument of KNDI vs. TSLA.

    As you can see from the link below, KNDI has developed from plans, to prototypes, to testing and to PRC approval a total eight EV's. The two in the upper right are LSEV's and are currently being sold in the US, the other six are approved for highway use in China. All were developed over the past three years with no financial subsidies, loans or loan guarantees from any Government source. An most amazingly managed to do it while coming out of the World-wide recession with KNDI making money the whole time.

    But as well stated as the earlier portion of you comment is, I have to "scratch my head" as to what you were thinking when you hurt your point with this statement:

    "I just have one question for the readers: by looking at the pictures in Konrad’s article, which car would you choose: Tesla or Kandi?"

    Without caveats, of course everyone, myself and every China resident included would choose the Tesla.. But at ten times the cost, wishes and dreams quickly fade to reality in KNDI's home market where mobility is currently dominated by bicycles and scooters.
    Aug 5 08:59 AM | 8 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.

    If you like the story and potential of KNDI, then I suggest you use these attacks to your advantage.
    Oct 15 03:22 PM | 7 Likes Like |Link to Comment
  • Kandi: Experts Weigh In On China's EV Market [View article]
    jsIRA- KNDI has NEVER misreported its revenues. If they had, either you would not know it, or they would have had to amend their SEC filings.

    Now if you are referring to the the comments that Pearson picked out of the three year old Sharesleuth article, The Company addressed the SS allegation at that time with the following 8K letter to shareholders.

    Since the letter is filled with tables that will break down if I try to paste here, let me just paste the last two lines of the 8k:

    This mistake only affected unit count and not the total revenues as was described above, and which produced the results presented in Table 3 in this letter. It is this Table 3 that we will file to correct our 10-K, with a summary of the detailed explanation in this letter.

    One final note: our revenues are accurately reported, and the sources of our revenues are accurately described. We apologize again for the error and the confusion it created.

    Good luck to you on your Chinese Solar companies. Must be a dozen trading in the US and competing for US investors, and hundreds businesswise cutting each others throats in China.

    I'll stick with the only stock Americans can trade that is leading in EV technology in China.

    Lets see who does best from here on out.
    Oct 6 03:52 PM | 7 Likes Like |Link to Comment
  • Kandi: Experts Weigh In On China's EV Market [View article]
    scam-detecotor- I hope you don't believe everything you read on SA to uncover scams. But in this case, might I let you know, KNDI never put out a PR saying they would not execute a financing. What they said in that PR was that Pearson was wrong in accusing the company of doing an "At The Market" (ATM) financing which is a "hidden rolling, not disclosed in real time" type of financing. Here is exactly what they the Company said:

    "..A shelf registration statement (S-3) is authorized by the SEC under rule 415 allowing a single registration statement to be filed by certain qualified issuers which permit public offering of multiple securities for up to three years. In a shelf registration, securities usually are registered for sale either on a continuous or delayed basis. However, the Company's current S-3 registration is not an "At the Market" or "ATM" offering as described in the short seller's article as: "Kandi's S-3 filing is known as an "At the Money" registration statement." We believe the short seller either lacks basic knowledge of securities regulation or simply releasing misleading information to the investing public."

    Here is a link to that PR.
    Oct 4 01:04 PM | 7 Likes Like |Link to Comment
  • Kandi Technologies: If You Don't Like The Message, Attack The Messenger [View article]
    Watching the trading today after my article is the short acting exactly as I spoke of in my article published two weeks ago before the big run,

    Kandi Technologies: Is Kandi's Short Seller A Dead Man Walking?

    I might also add. Save some buying for the closing minutes. This stock almost always gets tapped down in the last minutes, and gaps open the next day.

    If you want to buy, be sue to put in limit orders. If you want to be agressive, keep your limit orders just a few pennies or two above the current market. The big run up you saw this morning after the article was the short buying shares a large amount of shares in his other accounts, and then using those shares to walk the stock back down in an attempt to demoralize buyers. He is having to use that tactic since there are no shares available for loan at any brokerage firms right now.

    While it is unlikely we will see any news from the company for the balance of this week due to the Chinese Holiday, I know of at least four more Seeking Alpha articles coming out over the next week.

    He might be able to fight it for a day or two, but not over a week.
    Oct 2 11:03 AM | 7 Likes Like |Link to Comment
  • Kandi Set To Surrender Gains Again [View article]
    mikeasa- The S-3 that was filed a week ago last Friday, was not a "quick" S-3. It was an obligation that was incurred in December 2010 with the attachment of warrants to the prior offering that was done at that time. Ironically, while this small 1.2 million share warrant registration for 5.36 warrants became public knowledge on the 20th with the stock at 6.70 prior to pearson's article, the stock traded 39 million shares at an average price of 8.22 from that date until prior to Pearsons article. I would think that would be enough profit and volume to absorb 1.2 million shares.

    Also, Where Pearson was dead wrong in all three articles is in his statement that the company desperately needed to do the June 29th $26 million financing. If you know how to read a 10Q filing, you will notice that the proceeds from that financing was not realized by the Company until July 1, after the books closed for Q2, yet during Q2, KNDI not only made the $23 million payment, it also made the $80 million Geely partnership contribution, it increased inventory from $7 million to $17 million, and it increased "advances to supplier" by an additional $25 million. All in reported Q2 BEFORE it received the cash from the financing.
    Oct 2 08:29 AM | 7 Likes Like |Link to Comment
  • Kandi Technologies: Exceptional Strategy For China From An Urban Planning View [View article]
    One other reminder for those who want to do further DD re. the financials.

    KNDI close a $26 million stock financing at $6.03 a share on July 1. One day after last quarters SEC 10Q books were closed. So add a net $25 million to the cash position when looking at the 10Q. Additionally, during Q2, the Company put up their whole $80 million US share of the registered capital required for the KNDI-Geely JV. For that reason, you will see a switch from a positive $53 million in working capital to a negative but do remember, the cash from the financing had not shown up yet.

    You will also notice a $10 million jump in inventory, and $27 million jump in advances to suppliers. This in preparation for at least a major ramp up in EV sales in the second half. Likely to be $70 million plus. Particularly now that the City of Shanghai has elected to start a KNDI CarShare program before the end of this year.
    Aug 27 02:15 PM | 7 Likes Like |Link to Comment