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Arthur Porcari

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  • What The Market Missed On Kandi [View article]
    Rocky mountain- I suspect I know why he is so silent. After speaking with interested legal counsel yesterday afternoon, what Pearson did here went beyond that thin line that most attack writers know not to cross. He didn't just give innuendo of possible problems with the target company which makes it hard to bring legal action, he clearly "created" his own facts out of his own fiction and stated the fiction as fact, rather than couch his comments as "opinion" like most smart attack writers do. And forget about what he has said about me, I have been similarly personally attacked with the same 25 year old SEC Finra stuff on a half dozen KNDI attack articles over the past three years, and as you can see, I am still around writing under my own name and publishing my phone number for anyone to contact; where he screwed up big time is totally disregarding facts that were in his possession about the company, and replaced them with facts best suited for his immediate agenda.

    Where he has a particular problem is that he claims to have been a licensed trader and investment banker, yet he has made claims regarding SEC rules, such those regarding S3 filings that are totally incorrect, making even the SEC look like an errant keeper of investors trust. If his stated background is correct, he cannot claim "ignorant investor" as a defense.

    I know and have known this as fact for decades as a former licensed investment broker/banker. That is why when I write publicly I make sure my facts are correct and give backup links when ever possible to pertinent references.

    Yes, I had a run-in with the SEC in the 1980's as he properly stated over a stock my firm was behind that hurt a number of short sellers severely. I will give you two guesses who complained about me to the SEC regarding that NASDAQ stock going up ten fold in a few months. But if you read the SEC claim against me at the link he provided, you will note that I did agree to settle with the SEC after fighting the case for seven yeard and spending six digits on attorneys. What was my penalty from the SEC? Read the settlement. It was nothing, no fine, no penalty, just a promise that I would be less aggressive in the future. (sorry to say, while I spent six digits of my own money fighting that case, the taxpayer probably spent ten times that much keeping that case alive.)

    BTW, regarding the insider trading accusation he made against me, once again shows how little he cares for accuracy. While this FINRA incident was filed against my firm as a "possible" insider trading violation, we were cleared of that charge but subsequently settled years later after we already sold the firm and left the business for a inconsequential "records keeping" violation. (I apologize for the CAPS below, as this is a direct copy and paste from the order he gave you the link to) If he would have taken the time to read the whole link reference as to what a bad guy I am, he would have seen this, but then that would not have suited his agenda.

    Copied from the FINRA Order (NASD at that time)




    (I am almost embarrassed to admit, the shares spoken about in the above action were trading at $.30 a share. Yes, lots of legal money wasted on both sides over less than $5000 in stock :-)

    Bottom line in what I am trying to say here is that if he has a half smart attorney, he has likely been advised to keep his mouth shut because he has already said too much.
    Jun 22 08:01 AM | 6 Likes Like |Link to Comment
  • What The Market Missed On Kandi [View article]
    KNDI's revolve has been rolled over for all the years they have been public. Each year the banks increase it. In the past year alone it was increased almost 20 million.

    KNDI has very little long term debt which is common in the Chinese banking system. The Banks keep it to one year so they can adjust to the current interest rates.

    In KNDI's case, their CEO Mr. Hu, who is worth about a half billion dollars outside of KNDI p;ersonally guarantees the revolver, not because he has to, but because he wants to get a lower interest rate for all his shareholders. Know any US CEO's who own less than half the stock that stick out their neck like that?
    Jun 21 11:00 AM | 6 Likes Like |Link to Comment
  • Rent This EV Stock And Enjoy The Ride, But Don't Keep It Too Long [View article]
    And here is your "re-evaluation" an hour later:

    "Kandi Technologies Revs Up Revenues From ATVs, Big EV Sale More Likely
    9 comments, 9 called-out Comment Now
    Follow Comments
    My negative article this morning on Kandi Technologies (NASD:KNDI) first quarter results got blood boiling among the stocks’ advocates. Arthur Porcari, a former Merrill Lynch investment banker and the closest thing I know to an analyst following the stock, basically called me a “moron” for being disappointed in today’s reported results.

    When people I respect call me a moron, I call them up and get details. Turns out he was right.

    Expecting The Worst

    Why was I disappointed? I was primed by yesterday’s sell-off to expect bad news, so I read the Q1 looking for bad news. There aren’t any consensus analyst numbers to compare, and I don’t follow the discussion on the chat boards, just the news articles, so the “bad news” I latched on to was the comment that “For the EV products, the Company has not realized mass unit sales during this reporting period.

    Upside Surprise

    Apparently that was not a disappointment. According to Porcari, “I don’t know of one shareholder who was expecting more then maybe 300 EV’s in the quarter.” He also said that the good revenue number from Kandi’s ATV business was a big upside surprise. He’d been expecting sales to be flat.

    Why the Sell-Off?

    Porcari attributes the sell-off over the last month to a large owner wanting out, at the same time volume dried. As for the sell-off yesterday which had me worked up, he attributed it to an article at Plug-in Europe which linked to some old and discredited allegations that Kandi had been padding its numbers. I find that very credible… it does not take much to move this stock around.

    Why no Big EV Sale Yet?

    I was ready to believe the worst about Kandi because we have been waiting for the first a big sale of EVs for many months now. In early April, there was a EV taxi fire in Hangzhou (the most likely candidate city for a large order.) This has bureaucrats paralyzed, but should actually be good news for Kandi. The taxi which blew up was a retrofit, with the batteries inside the passenger cabin. Now officials are looking for purpose-designed vehicles with batteries much more safely stowed outside the passenger compartment. Only Kandi is ready to deliver these.
    Jun 10 03:56 PM | 6 Likes Like |Link to Comment
  • Kandi Technologies Vs. Tesla: Wall Street EV Match-Up Revisited Part 2 [View article]
    futurecartsla- I appreciate the comment and fully agree that TSLA's success can only help KNDI's US recognition. I have been saying that for as long as TSLA has been trading. After all, they are the only two "pure play" EV manufacturers a US investor can easily play. My only goal with these articles is to attract potential long term KNDI shareholders, not traders. And the best way to attract long term investors is to give them just enough info that they will do their own DD. Only then will they have the confidence to go for the long ride up. From a lot of the comments I have received from these two articles, I feel like I have made a lot of inroads to achieving that goal.

    Believe me, while I don't hold any TSLA shares, I am your biggest non-shareholder rooter. On a much smaller scale, we KNDI holders have been fighting our own short seller battle. To see them getting burned is fine by us.
    Apr 30 05:38 PM | 6 Likes Like |Link to Comment
  • Kandi Vs. Tesla Wall Street Match-Up Revisited: Exceptional EV Business Execution From Both [View article]
    Brett- KNDI has been trading in the US of almost seven years now; filing close to 30 SEC quarterly and annual filings along with four or five SEC registrations.. Too many ignorant investors drink the incorrect Koolaid that short sellers falsely tell them About RTO companies that become listed on a major exchange.

    The only difference between an RTO and an IPO is an IPO doesn't file a registration statement with the SEC prior to trading here. But once the RTO files their first Registration Statement with the SEC, they are on an equal playing field with IPO's. As a former Merrill Lynch investment banker and owner of a Regional Brokerage firm, I can assure you what I said is true. BTW, there have been more IPO's delisted in North America, than RTO's.

    The bottom line is if a Company, China or US wants to do fraudulent things, they will get a way with it until they are caught.

    What should differentiate KNDI from most of the rest of the US listed China Companies is they are NOT a Variable Interest Equity (VIE, like Baidu IS) which means US shareholders do have voting control of the company,

    Additionally, this company is reticent in bragging about what they are accomplishing in China to a point that myself and several other shareholders who do scour the China websites daily with Google translator have to often prod the Company into even putting out PR's on good things over here. Case in point. In this article, just prior to submitting it to SA for publication, I found the Hong Kong Stock Exchange PR I linked above to the Sinopoly 2000 EV purchase.

    After finding it, I sent the link to IR and told them they need to PR this. Finally they did on the 23rd. Now can you imagine TSLA or any Company in the US waiting several days to put out a major announcement like that ? Here again is the link from above I am talking about.

    This is not an isolated incident. Wouldn't you think if a company was trying to scam US investors, they would be pounding the wires with any bit of news they could conjure up?

    Yes they were an RTO and thankfully so, or retail investors here would likely never be given this opportunity. But they traded here for three years before they attempted to raise a dime in the state.

    The ONLY reason they listed here was at the request of their US off road recreational vehicle distributors. In 2007, that year they exported over 40,000 various ATV's etc. to the US. Their distributors convinced the CEO to trade in the US so that could help the branding of the Kandi name by being able to say, "Kandi Technologies, Listed on NASDAQ" in their advertising.

    Risk? yes there is Risk. They have ten pages of Risk in their last 10K. But you don't think there is risk in TSLA? Their last 10K has 36 pages of risk. But isn't that what the stock market is all about? You take risks to make big bucks. I would think that any intelligent investor would realize that the current low market price of the shares all ready discounts almost any imaginable risk short of fraud and pestilence, and even the ten or so attack articles purveyed by the significant short sellers never even went so far as to accuse the Company of anything illegal, let alone fraud. And you can bet they tried to find some.

    Lastly, If you are going to do business with the PRC Government or major public companies like Geely in China, where they are putting up their money for you, you better be legit, or you end up with a hemp necktie. Last time I saw KNDI's CEO at a shareholders day in Atlanta last fall, his tie was silk.

    Hope this helps.

    Thanks for commenting
    Apr 25 02:31 PM | 6 Likes Like |Link to Comment
  • Kandi Technologies: Customs Records Contradict U.S. Electric-Vehicle Sales Claims [View article]
    Sinopoly's largest outside shareholder who bought all his 1.2 billion shares last year is Li Ka Shing. Name sound familiar? Forbes #8 wealthiest.;
    Apr 23 04:49 PM | 6 Likes Like |Link to Comment
  • Kandi Technologies: Customs Records Contradict U.S. Electric-Vehicle Sales Claims [View article]
    Adam, read my comment below. Don't knolw if you are aware of not, but this is the seventh time he has attacked KNDI.
    Apr 23 03:30 PM | 6 Likes Like |Link to Comment
  • Who Secretly Got Millions Of Shares In Chinese Reverse-Merger Companies? - Part I [View article]
    I assume the client who was foolish enough to pay you to do this Vintage piece ten days ago felt he didn't get his moneys worth and insisted on you re-releasing this as a new Seeking Alpha author.

    (Link to this same article ten days ago)

    It really is getting ridiculous that SA is now starting to think so little of itself that it allows its site to be used as a "mulligan".

    Now since you say this is part one of three, let me give all you interested readers a scoop. Here is the links to part 2 and 3.

    (Part 2 to this article link):

    (Part 3 to this article link):

    BTW, you all should quickly notice that Part II is mainly about me. My name was mentioned 21 times as to what a bad "actor" I am. Effectively, regarding KNDI, this tripe is not much more than a Re-do of a January 2011 article you mainly pasted into this one.

    And here Here is the link to the 2011 article:

    Just a thought, you should really just give back the money your were paid to do this worthless hatchet job. All you are doing is giving false hopes to the large short seller who is totally bagged in KNDI which according to your disclaimer does not include you. So seriously, who did pay you and how much? You cannot really expect anyone to believe you would take the time to write ten thousand words about about five and six year old history for free.
    Jan 3 12:25 PM | 6 Likes Like |Link to Comment
  • Kandi Technologies - What's That Light? [View article]
    Perry- you do bring out some interesting points on KINDI.

    As an old Market Maker in the late '70s through late '80s, I had the opportunity to work with some of the legendary short seller back in the day before black box programs, computer trading, certificatless trading and the up-tick rule was still in effect. Back in those days when the playing field was level, I learned two important things. 1) There were no "old, bold" short-sellers. and 2) I short never voluntarily covers when a stock is running up fast; or down fast. They shorted more. They basically only cover voluntarily when they break the "will" of the stock and its investors finally capitulate and start liquidating their long positions. They do this by putting in small to medium sized bids (usually hidden) and buy slowly on downticks.

    Re. #1. No matter how good they were, they all met their Waterloo by being stuck in a short squeeze they couldn't get out of. #2; the reason they couldn't get out was they stayed with the old adage of shorting more on fast run ups and run downs.

    Their rationale behind this behavior is that when a stock is collapsing, they needed to keep the downward momentum to break down the chart and scare out nervous holders. When the stock is running up, particularly on news, they are forced to short more (the bigger the news, the harder they short); both to contain the move avoiding momentum buyers from stepping in, and to also average up their short. The last thing they want to do is to have the Wall Street crowd "smell the blood in the Street" of a troubled short seller and pile in.

    There is another old adage that is appropriate and we have been seeing a lot of lately in KNDI and that is "You make the stock look weaker when you want to buy, and stronger when you want to sell". When you think about it, this is just common sense. But most investors don't think about this while worrying about their stock appearing to collapse. Jim Cramer often talks about this strategy when he ran a hedge fund trying to add or unload a position. Over the last couple of months we have seen two overt attempts at this by a fiction writer attacking KNDI with innuendo and disinformation. Both attempts failed due to underestimation by the short of KNDI's loyal, intelligent and knowledgeable shareholder base.

    After each attempt, in spite of a very short term drop in the stock price on heavy volume, within a day or two the stock recovered all and more of the drop and the ensuing short interest just went higher. Lets face it. If they really thought KNDI was a bust company, they would encourage the stock higher. You make a lot more money shorting a ten dollar stock than a four dollar stock.

    No, as you point out in this article, KNDI is a time bomb in the shorts portfolio and the short knows it. In fact, I am sure he regrets the past two hit articles in that these articles brought a lot of new "eyeballs" to a Company. In KNDI's case, the two articles did not deny KNDI is on the Precipice of being the China leader in EV's, only that in the opinion of the author; KNDI would not "pull it off".

    So now these articles have probably added thousands of new lurkers who never heard of KNDI to add it to their radar. Up until a few months ago, KNDI had no Investment Funds holding. But recently, one of the Countries largest Funds Invesco reported an initial six digit purchase. A few more of these, and the short here is a "Dead Man Walking".
    Dec 4 08:12 AM | 6 Likes Like |Link to Comment
  • What Percentage Of The 120M China EV Bike Owners Will Kandi Technologies Convert? [View article]
    Exceptionally well done. particularly for a first article.

    A very logical case for KNDI to do 1.5 million units over the next several years.

    But I am glad you focused on KNDI's new Role as the PRC's leader of their new preferred business model for all of China.
    Oct 12 01:59 PM | 6 Likes Like |Link to Comment
  • PRC 'Policy Paper' Favors Kandi Technologies EV Program For All Of China [View article]
    How ironic. I submitted this article to Seeking Alpha with expectations it would be out yesterday. Due to technical difficulties, it did not come out until today.

    As you can see from my second Q&A question, I alluded to the short seller possibly running into a problem. To my amazement, but not really surprise, yesterday a declared short seller made a desperate attempt to "fix" his problem by publishing a "hit piece" on KNDI with the intent to both scare out existing investors and sucker in new short sellers.

    The strategy used was to put out a very long article never accusing th company of fraud, and for that matter never accusing the Company of doing anything illegal. Just loaded with obfuscation and innuendo about business dealings mostly going back four to six years (much before the company ever came public), that any business person, either in the US or China, would find normal. (Dealing with people who the CEO knows. In the words of my daughter: Dahhh.)

    The strategy he used was to put out his very long article mid-day, then start crushing the stock, knowing that no one would really have time to read it and realize he was saying "nothing" until later. You see he was relying on normal investor fears causing the stock to drop quickly causing more short sellers to "get on board" while at the same time he could start covering his short on the suckers back.

    For a while it looked like it might work. But where he screwed up was putting it out too early. Once cooler heads prevailed and some intelligent investors actually read the article, the stock came roaring back as intelligent longs, and panicking new shorts scrambled to buy the ridiculously cheap stock.

    Yes, the stock did still close down significantly, but up well over half the inter day low jumping .25 in just the last few minutes to close on the high of the afternoon. His only salvation was the market closed; fore with the momentum coming into the close, it would not have been surprising to see the stock actually close up.

    One need only look at the last paragraph in HIS hit article "conclusion" to realize how ridiculous this attempt was, and I quote;

    "KNDI's EV business is still far from viable in Hangzhou City. The entire 20,000 KNDI's EV rental business is still in the planning stage and the first 100 vehicles promised to consumers have not been delivered. KNDI's EV rental business depends on subsidies from Hangzhou City, which are going to expire at the end of 2012. Currently, there is no new subsidy plan to replace the existing one."

    (note; his is not denying KNDI has this monster order, only that HE thinks it won't happen)

    Everyone that I know involved in this stock is fully aware that the only temporary hold up in KNDI starting to deliver on this $135 million 12-18 month order is Hangzhou finalizing the new, more attractive subsidy program which is much more attractive and more closely follows the conclusion of the PRC in the 22 page Policy Report, I write about above. From our contacts in Hangzhou, it should be ready in just a matter of days after which KNDI will immediately begin shipment of the 20000 ev program to CALB for the Hangzhou Leasing Program, CALB is a division of "Lithium in the Air" PRC State Owned Enterprise. Let me paste the conclusion paragraph from the Government report again here.

    "From the current electric vehicle leasing model as a new type of public transport modes, more conducive to ease urban traffic congestion, parking lack of resources, favor urban environmental protection, and also more likely to take the lead in achieving large-scale industrialization. Government through financial subsidies, tax breaks and other preferential policies to encourage and support the electric car rental companies to expand their business, and actively nurture and develop the electric car rental market. Tourist cities and other local cities according to the actual situation of the region, to further increase the support of the electric car rental companies, such as environmental subsidies, free supply of land, dedicated parking, local support policies."

    Does this quote from the new PRC EV policy look like Hangzhou will be giving up on the program?

    The old program just involved only subsidies to the buyer. The new program adds " financial subsidies, tax breaks and other preferential policies to encourage and support the electric car rental companies to expand their business,.."

    So if you are smart enough to read this article, then you must be smart enough to know a lot of money could be made here.

    Pick your pleasure, Go Long or Go Short. One side is going to win BIG..
    Sep 28 07:11 AM | 6 Likes Like |Link to Comment
  • Kandi Technologies: A Practical Approach To The EV Market [View article]
    Perry, Welcome aboard with your first SA article. Well done with one exception. Your earnings valuation for this and next year.

    You took your per unit valuation from the EV's sold to date from its SEC filings. The problem with doing this is until just this past month, all prior sales were for the LSEV Cocos which are exported to the US and have a large Distributor discount, and some KD5010 Lead Acid Battery cars.

    The 20,000 Hangzhou order is for the KD5011 Lithium cars which are being sold directly without a distributor. From announcements in China along with Hong Kong Stock exchange filings by China Aviation Lithium Battery Company, the Hangzhou purchasers, they will be paying around $120-135 million for the cars. Which not only bumps the price per unit to $6000 plus, but also give KNDI a bigger margin.

    Additionally, earlier this year KNDI acquired three subsidiaries of another Company. The products each of those subs make are EV Motors, EV Air Conditioners and EV Controllers. Together those three subs are now supplying parts that comprise well over 50% of the cost of the car. So more profits due to Vertical Integration.

    I believe conservatively, KNDI should earn well over $.60 a share this year and over $1.20 in 2013.
    Aug 29 09:38 AM | 6 Likes Like |Link to Comment
  • Kandi Technologies, Corp.: Numerous Concerns Outweigh Possible Potential [View article]
    Sorry Andrew.

    News Just broke in China. KNDI gets the 20,000 EV order to be completed by the end of 2013.
    Jul 11 12:07 PM | 6 Likes Like |Link to Comment
  • Cramer's Mad Money - Respect The Rotation (3/31/14) [View article]
    Great comment on KNDI. Too bad Cramer won't take the time to read it.

    One thing I am in agreement with Cramer and that is that KNDI is not TSLA. It never claimed to be nor have any KNDI knowledgeable writers. KNDI is an early VW or Ford, and TSLA is a Cadillac; two totally different markets.

    While there are some similarities which I pointed out in a few SA articles over the last couple of years, the big difference, IMO, is that KNDI has already made the capex to increase current capacity to over 200,000 EV's per year which should increase to as much as 500,000 per year by the end of 2015. The Competed facilities are in Jinhua (30,000), Changxing (100,000) both in Zhejiang Province, and Shanghai up to 200,000 per year. Under construction, Haiku, Hainan Province (100,000) and Regeo, Jingsu Province (100,000). And they did this without one dime of Government money, either cash or loan guarantees.

    Now maybe the CEO, who also is the largest shareholder and personally guarantees over $40 million in Company bank debt is vying for the position of "Emperor of Ghost Plants" or he knows more about the pent up demand for small EV's once the PRC finally releases the funds for the EV subsidies; which according to the KNDI 10K, puts an April expectation date on it.

    BTW, I also find it interesting when doing a Google Search of Cramer, Tesla and limiting it to 01/01/12 and 06/01/13 there must be fifty lightning round comments by Cramer to "Sell, Sell, Sell" Tesla from less than $30 on up. I suppose today's Ho-hum reaction to Cramers bizarre diatribe must be quite disconcerting to the holders of KNDI large and rapidly growing short position.
    Apr 1 01:38 PM | 5 Likes Like |Link to Comment
  • 3 Billion Reasons Why Tesla's Gigafactory Will Be A Bloodbath [View article]
    John, Having read most of the articles in your vast folio of Seeking Alpha articles re. EV's, it appears over the years you really have written only one article Pro an EV company, Kandi Technolgies (KNDI), (Kandi Technologies: An Intelligent Vehicle Electrification Plan ) and that was back in 2010. While KNDI's business model has changed some, and their stock is up some 500 per cent since that time, aside from the fact they seem to have hit on all three of your "numbers" above, what is your "feel" about the "CarShare" direction, KNDI is going?
    Mar 3 07:48 AM | 5 Likes Like |Link to Comment