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Arthur Porcari  

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  • Kandi Technologies Charges Ahead To Another Record Year [View article]
    At the start of the year, the shill's of the short sellers in KNDI had two favorite Mantra's to pander their misconceived decision to "fight" KNDI and the audacity of China based companies to list in the US.

    1) [short seller] "The Kandi JV with China top Passenger Car Maker Geely is bogus, we turned over our evidence to the SEC, the SEC agreed and Investigated the Company and soon they will Shut KNDI down"

    Under the old adage "Be careful of what you wish for, you might get it", the shorts "hoisted themselves on their own Petard" by succeeding in getting the SEC to thoroughly investigate the Company for 15, months, but instead of confirming the accusations, the SEC vetted the shorts complaints and found them false and ended the Investigation with no findings of KNDI guilt at any level. So now the shorts, who doubled their bet by increasing the reported short position to almost 8 million shares (24% of the non-insider float) still find themselves with 7 million short with KNDI entering "hyper-growth".

    2) [Short Seller] KNDI is "Out of Cash and will immediately have to do a massive equity raise to stay solvent"

    Wrong again. The following extract is taken from yesterday's 2014 10K.

    Working Capital

    "We had a working capital surplus of $39,202,684 at December 31, 2014, which reflected an increase from a working capital deficit of ($6,631,680) as of December 31, 2013.

    As of December 31, 2014, we had credit lines from commercial banks of $42,739,904, of which $35,589,502 was used as of December 31, 2014. We believe that our cash flows generated internally may not be sufficient to support the growth in operations and to repay short-term bank loans for the next twelve (12) months. However, we believe our access to existing financing sources, including the remaining net proceeds from our $71 million registered direct offering financing completed on September 4, 2014, and established relationships with PRC banks will enable us to meet our obligations and fund its ongoing operations.

    We have historically financed our operations through short-term commercial bank loans from PRC banks. The term of these loans is typically for one year, and upon the payment of all outstanding principal and interest in a particular loan, the banks have typically rolled over the loan for an additional one-year term, with adjustments made to the interest rate to reflect prevailing market rates. We believe that this situation has not changed and that short-term bank loans will be available on normal trade terms if needed."

    KNDI as a rapidly growing company, states that the cash flow they are generated might not be enough to fund their expected growth. HOWEVER, they make it quite clear that by using a combination of the remaining capital they have from their $71 million equity financing they did at $17.50 a share last November and short-term loans from their banks, they will meet their obligations and continue their growth.

    Why are they ( and I) confident they will have plenty of access to cash?

    Both the PRC and local Governments have committed to give total support to the growth of EV's in China by providing massive subsidies to EV manufacturers on the PRC side and EV purchasers on the local side. The payments from the PRC side, which are made four to five months after the end of the reporting quarter, have already begun with the JV already receiving over $60 million for sales made up to and including the end of Q2 2014. Another payment in the $30 million plus area is due to be paid shortly. Currently as can be seen by the 10K, the JV owes KNDI $51 million of which a big chunk will likely be paid when the PRC subsidy check gets paid. (BTW, with the almost 4000 EV sold in Q4 by the JV, a second check in the $30 million area is assured and will likely be paid some 90 days after the first check this year)

    As I mentioned above the local government also owes subsidy checks to the purchaser. While Shanghai has already paid its required check for the first 670 cars sold in Shanghai in Q2 and 3 to the purchaser who is ZZY a company that KNDI owns 9.5%, the City of Hangzhou who owes in excess of $80 million through YE 2014 has not yet made a payment. But this is not unique to ZZY, Hangzhou has apparently not made subsidy payments to any EV sellers in the City to date. While this payment has no direct effect on KNDI since ZZY is independent, it is likely upon payment, that ZZY will be purchasing more EV's for Hangzhou. ZZY has apparently told KNDI they expect the payment to be made soon, which is also likely evidenced by posting of major mid and Executive level hiring by ZZY in Hangzhou just last month.

    With their last two hopes behind, it will be interesting to see what new fabrications the trapped short sellers will conjure up next.
    Mar 17, 2015. 08:05 AM | 20 Likes Like |Link to Comment
  • Kandi Technologies Charges Ahead To Another Record Year [View article]
    Having recently published my own SA article on March 9th which I did attempt to give some of my expectations for the just reported quarter, I am happy to say that my revenue estimates for both the Company and the JV were on the low side and my EPS estimate was vastly exceeded in both GAAP and Non-GAAP. And the 13.7 % Gross Margin also was a pleasant revelation. I also gave a very speculative "Forward Look" in my article. Based on the YE 14 success, I feel even more confident in these estimates.

    Here is the three sections from my article regarding the above prognostications:

    RE. Revenues and earnings:

    "My personal speculation is that the JV will have a significant increase in sales of over 80% Q3 to Q4 2014, bringing its full first year to over $200 million (since the JV only began sales in 2014, no YOY comparison), and JV profits for the year to over $15 million. Due to the above described changes, Kandi the public company's top line is harder to calculate with no past complete quarter under the "new parts only" program to reference. But under any circumstance, Kandi's top line for the full year should be up 50-70% and full year bottom line, both GAAP and Non-GAAP, should be profitable from a loss last year."

    RE Margins:

    "Up until mid-Q3, 2014, while selling EV parts to the JV, Kandi was also selling a large number of what was designated as "EV Products" or effectively 95% completed, but unlicensed EVs to the JV. Also around this same time, instead of just being a "middleman" delivering the EV batteries, Kandi, like TSLA, began buying the raw batteries and packaged them in its own BMS therefore increasing gross margins on battery sales from a few percent to low double digits and also respectively increase its own Net Margin on the batteries.

    But overall, Kandi cannot rightfully be expected to maintain high independent gross margins, as for example TSLA who is not involved in a JV and books all of its revenues (likely a reason Musk is so reluctant to partner up in China). Kandi must sell the "EV Parts" at a very competitive level to maintain its status as exclusive supplier to the JV. But, since it also earns bottom line from both the JV and ZZY, it can very profitably afford to take the reduction in its own gross margins. Ironically, it is not impossible that at some point Kandi's all-important Net Margin, could theoretically exceed its Gross Margin."

    Link to my SA article

    "China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot"
    Mar 17, 2015. 06:58 AM | 10 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    because both KNDI and Geely said so. Do you have any evidence otherwise?

    If a stockholder has any reason to doubt the voracity of Management of the stock he or she holds, KNDI, TSLA or otherwise, selling of that stock should be seriously considered.
    Mar 14, 2015. 11:06 AM | 3 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    In 2007 when KNDI decided to trade in the US it was a pure "Off Road Recreational Vehicle" company exporting 98% of it products to the US. The reason the Company decided to list here was at the request of its US distributors and dealers as a way to "enhance" the KNDI brand name in the US.

    KNDI had been trading in the US for over three years before they did their first $10 million private placement financing.
    Mar 14, 2015. 11:01 AM | 4 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    During those 3 years KNDI developed and received PRC approval for a total of 14 EV cars and trucks and is the reason KNDI is #1 in pure EV sales in China.
    Mar 14, 2015. 10:54 AM | 2 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    The first leg of "real money" was made by those who followed my first 20 articles recommending KNDI at prices from $2 to $4. (even at those levels, attack articles were abundant and the short was in the millions) The next leg of "real money" will be had by those buying now.
    Mar 14, 2015. 10:48 AM | 5 Likes Like |Link to Comment
  • Chinese Electric Vehicle Companies About To Boom [View article]
    As a first time author let me come to his defense. When uploading an article to the SA Platform, when one happens to mention a company or item that is made up of initials (such as BYD) the on-line software that takes the article looks at these initials which are part of the proper name of the company, and assumes it is a stock symbol and publishes it as such. The author doesn't necessarily realize it until he sees the published article.

    Re his reference to "no profits at this time", I believe this was speculation on ZZY's profits, not KNDI, Geely or the JV.
    Mar 12, 2015. 11:13 AM | 12 Likes Like |Link to Comment
  • Chinese Electric Vehicle Companies About To Boom [View article]
    Matt- Congratulations on your first SA article.
    If I may add the following:

    Kandi technologies will be reporting their 2014 results on Monday. Expectations are for another stellar year over year record increase.

    As a China company, the stock has been under very heavy short attack for over three years now with some 40 attack articles written even with prices as low as $2 a share.

    In 2013 several of these attack writers inundated the SEC with reams of bogus information on the Company in hopes of initiating an SEC investigation. While they were successful in their immediate goal of bringing an investigation against the Company in Nov. 2013, the tactic backfired when last month the company was notified that the “Commission” found no actionable fault against the Company and ended the investigation with no action.

    This has now become very problematic for the shorts in that the latest published short interest, at 6.8 million shares, though down a million since the SEC release, is still some 23% of the non-insider float, and a large multiple of its current average daily volume of between 500-700 thousand shares a day. Prior to the SEC investigation the short was in the 2-3 million share level.

    Because of this dilemma the shorts now find themselves in, you will see a rash of attacks on every article or comment that attempts to get the correct story out on the Company, even if the reference to KNDI is only incidental as in this article.

    Earlier this week, I published an in-depth Seeking Alpha article on KNDI based on my almost 8 years of following the Company, and two personal visits in China. If you have an interest in learning more about the Company that recent Won “2014 China's annual Green Car - Innovator Award” and get a look at Revenues and earnings prospects for this year and beyond, I suggest you read my article which is the “Real” Story on KNDI.

    (BTW, expect to see the same short selling detractors to now attack my comment here)

    “China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot”

    Mar. 9, 2015 3:26 PM ET | 153 comments | About: Kandi Technologies, Corp (KNDI), Includes: BYDDF, GELYF, TSLA

    Disclosure: The author is long KNDI. (More...)


    --This incredible “eye opening” 103 minute documentary on pollution in China has already been viewed by hundreds of millions in China.

    --While devastatingly critical of all levels of China government, it had been allowed to air to the masses for a week.

    --Released the week before China’s 2015, plenary meetings of the NPC and CPPCC assure political awareness at all levels.

    --Kandi Technologies (NASDAQ:KNDI) with its Municipal Transit CarShare Micro-bus is the most well positioned China EV company to benefit from the “Peoples” outcry.

    --A speculative look at soon to be released 2014 Financial Results and beyond.

    Here is the link to my article
    Mar 12, 2015. 11:06 AM | 13 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    Ezra- Wong's audit passed SEC "muster". Your accusations did't. 'nough" said.
    Mar 11, 2015. 11:08 AM | 5 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    shylook- Due to currency protectionism, China does not allow its citizens to buy stocks trading outside the country. Unless a China resident happens to have an "offshore" account with cash in it (which is frowned upon by the Government but done to an extent), they really can't buy KNDI stock.
    Mar 10, 2015. 11:39 AM | 7 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    Rich Dude- As I told your compadre Ezra, if you would read the article instead of just pontificate out laziness, you would have noted that I gave the reasons KNDI's founder/CEO has not attempted to attract analysts at this time. Certainly the opposite of TSLA.

    TSLA, has the silver-tongued Elon Musk who, after convincing the US Government to lend him a half billion, enamored Wall Street with a story falling woefully behind in fact and now has these analyst and their clients bagged in over $5 billion in debt financing whose cash will be gone in just a few months.

    Now Musk comes back and gleefully informs these analyst to "be patient", "you can't cry your way out, better be prepared to Buy your way out" and OBTW, I am going to very soon need an "insane" amount of additional money from your clients and another five years and if you get me the cash. If you do, I promise that by 2020 I will show them the first real profit that I originally promised them this year.

    KNDI, to date who never got a dime from its Government, but has raised less than $150 million from institutional investors; Has not asked for or needs any additional cash, has been profitable in three of the last four years and will be profitable from here on out.

    Yet you raise some mythical "red flags" that the SEC could not find against KNDI?

    It seems to me the "flags" should be on the other "flagpole".

    What I have learned in my 41 years as a Market Pro is that eventually; "The Chickens come home to roost". TSLA may make it, but from what I learned from their last conference call, it will very likely have to be in some other auto makers chicken coop.
    Mar 10, 2015. 07:11 AM | 10 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    Ezra. I guess I am just a dumb ass wanting to put up a picture of a hybrid by a competitor whose stock is trading at half the price of five years ago and is losing money while its car sells for twice the price of the KNDI pure EV just because it happen to have been the same color.

    If I would have had any sense, I would have put the superior KNDI Pure EV picture up. But then you would and three or four of your buddies here would have had absolutely nothing to post about.

    BTW, you are aware that the interior picture is that of the Cyclone on both picture sets so my first upload was only half wrong.
    Mar 9, 2015. 10:47 PM | 10 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    During the same time that KNDI developed a half dozen EV's without one dime from the China Government. In fact during that time they were profitable and had to pay taxes.
    Mar 9, 2015. 10:39 PM | 12 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    Well, this is a first. Now you are trying to say that I may have been paid by management? Sorry to disappoint you, but all I have ever received from Management is maybe 5 free lunches and dinners while visiting the Company in China on my own nickle.

    You see Ezra, there are some of us left who don't have to be paid to do the "right thing". On the other hand, I guess you wouldn't know about that.
    Mar 9, 2015. 10:38 PM | 16 Likes Like |Link to Comment
  • China's Stunning Environmental 'Under The Dome' Documentary: Hits Kandi Technologies' Sweet Spot [View article]
    Ezra- for starters, the Quin and the Cyclone look nothing alike other than both pictures showed an Orange cars. So I might agree that Hu Might have "knocked" of the Quin color, or the other way around. Secondly, the Quin is a Hybrid that cost twice as much as the Cyclone.

    The reason you don't want to invest in BYD over KNDI other than for BYD's terrible 5 year historical performance is BYD carries a lot of baggage in its other low margin sectors not exclusive to the ICE line of cars. KNDI is pure EV play. Even the China investors don't like the stock. Just a couple of months ago because they were going to have to take a small 3% currency hit from cars sold to Russia, the stock dropped 40% in two days and basically has never recovered.

    Even you making up your wildest fantasy that Mary Jo was going to shutting down of KNDI was "Imminent" could only knock down KNDI 10% for about ten minutes before it recovered.

    Do you know the definition of the word imminent? "likely to occur at any moment" That doesn't mean next week, or even tomorrow. It means "Right now". Boy did you blow that one for your short selling buddies.
    Mar 9, 2015. 10:35 PM | 13 Likes Like |Link to Comment