Seeking Alpha

Arthur Porcari's  Instablog

Arthur Porcari
Send Message
Arthur Porcari is a retired former regional stock brokerage firm President with 40 years stock market experience. His finance background includes, three years a stockbroker and two an investment banker with Merrill Lynch, ten years a Regional brokerage firm President, and OTC Market Maker and... More
View Arthur Porcari's Instablogs on:
  • Kandi Technologies: A Losing Battle For Trapped Short Sellers- A Rebuttal Of Karl Richter's Visit To Fantasyland..

    Mr. Richter, I am so glad you came out of the shadows and gave me a venue to respond to you farcical attack on Kandi Technologies (NASDAQ:KNDI) and me personally. You have now given me the opportunity to expose you as the shill you really are.

    (Authors Note: I apologize for taking up the first quarter of this response defending Richter's direct challenge against me; feel free at any time to skip down to the section title: "Back to your farcical article- Your Credentials" to get to the important part of challenging his bogus article against Kandi.)

    This InstaBlog is in partial response to an attack article against Kandi Technologies and myself for supporting Kandi Tech for over seven years, referenced in a syndicated article published on Oct. 10, 2014 titled:

    "Worst stocks win awards in hedge fund 'short' contest"

    As one can see in the Comment section of the above article, the original author of the "attack report" which also attacked me personally for supporting KNDI; posted a comment below the main article "Calling Me Out" with the below comment after I had the audacity to make some despairing comments about his "take" on the core published article:

    KARL.RICHTER • 14 hours ago

    Are you the same Arthur Porcari who got into trouble with the Securities and Exchange Commission for stock manipulation and "predictions without a reasonable basis" in 1994?

    http://www.sec.gov/news/digest/1994/dig060794.pdf

    Are you the same Arthur Porcari who had his securities registration revoked by the National Association of Securities Dealers?

    http://finra.complinet.com/en/display/viewall_display.html?rbid=1189&element_id=1159003969

    I certainly am that Arthur Porcari. But you know that and so do thousands of followers of Kandi over the last half dozen years. Why do they know who I am? For two reasons;

    1) I am extremely proud of the type of multi-thousand hour detailed Due diligence I have done on Kandi (to include TWO personal trips to visit the Company in China- How many have you done?) for no compensation other than for a few free meals in China. And

    2) busting irresponsible short sellers who think they found they key to guaranteed riches by hiring "guns" such as yourself to spend a few hours nitpicking and embellishing worthless antiquated minutia to distort all the positive work of decent Companies. You don't have to be a student of Psychology (which I happen to be by degree), to learn that it is a lot easier to "scare" investors out of a stock, then to scare them into one.

    The problem with your article is that it was so poorly done that no one in the Sum-Zero Hedge Fund community, supposedly numbering in the many thousands, gave it any credence so you had to get it featured in some bogus contest article. My claim is proven by the fact your actual attack article was published and dated a month ago on Sept. 12, but got little traction from hedge funds until it was put out to public innocent individual investors on Friday by Mr. Jannarone's syndicated article. I say "little traction" in that the recent short interest report showing 7 million or 30% of the float, has remained stable at that level for the past month.

    Last 3 Short Interest Reports- Courtesy of NASDAQ.com

    (Last 3 Short Interest Reports- Courtesy of NASDAQ.com)

    However, as you can see from the chart below, gross short selling had been quite low but picked up dramatically around Oct. 1. Likely on the rumor to the Sum-Zero group that your hit piece finally found an outlet for general publication to retail investors. This dramatic pickup to as high as 52% on Thursday, the day before publication, and continued, but lower net shorting on Friday, tells me we should see a large jump in the next reported short interest numbers.

    Daily Short Sale Volume
     
    Kandi Technologie
    Last Trade: 12.10 -0.99 (-7.56%)Trade Time: Oct 10, 4:00pm ESTShort Interest Ratio: 3.70
    Disclaimer: Volume and short volume of a stock in the chart are limited to the aggregate volume traded on the NASDAQ, NYSE and OTC that has been reported to FINRA Trade Reporting Facility. We make no guarantee on the accuracy of the data. Please email any corrections or suggestions to webmaster@shortvolume.com. This site is supported by visitors like you. Thank you.
     

    © 2011-2014 shortvolume.com. All rights reserved.

    (The above table above courtesy of shortvolume.com gives a sample view of Gross Inter-day Shorting Measured by how orders were originally entered. A general rule-of-thumb is if the blue line (% of trades entered as short sale) is above 2.5 (25%), the likelihood is that day ended with net short sales added. Below 25%, likely net shares covered)

    You see Mr. Richter, I am no "Spring Chicken" when it comes to dealing with short sellers. If you read my bio on Seeking Alpha you would have noted though retired for some 25 years, I was a Market Pro to include a few year Brokerage/Investment Banking stint at Merrill Lynch in the mid-'70's as well as being President and owner of a regional full service stock brokerage firm and head OTC market maker. This followed by a few years of having an IR consulting firm.

    In my Brokerage firms days, I dealt with and sometimes joined in with some of the legendary short sellers of the late '70's an '80's. While I respect the good and necessary work done by short sellers to weed out the numerous "bad apple" companies that prey on innocent investors, I also detest the strategies of "bad apple" short sellers who perhaps innocently got trapped into a bad short position just due to the fact this is a China company; and are now desperately trying to sucker innocent investors into selling their stock to let that short seller out of his own trap. Jim Cramer as a former hedge fund manager does a very good job warning investors about how low Short Sellers will stoop to rescue a bad decision in this TV interview.

    Jim Cramer reveals dirty tricks short sellers use to manipulate stock prices down

    It is for these reasons I publish proudly under my own name (22 published articles on Kandi) and because of this, I have personally been attacked in no less than a dozen KNDI attack articles by incompetent hacks who quickly discovered "if you can't factually attack the message of the Company, then attack the messenger."

    Kandi Technologies: If You Don't Like The Message, Attack The Messenger

    What I find most hilarious is that all of you shills continue to link my sole interaction with the SEC which dates back to something over 25 years ago in 1989 where I was accused of creating a short squeeze. Obviously no "long" shareholder is going to make such a complaint, so what sympathy do you think you are going to get from Long shareholders pushing this in an article? What is even more hilarious is if you read the last paragraph of the Order, you will note what I was accused of was exactly what you and other shills are doing today on the "short" side with reports such as yours.

    "…The commission further found that, in connection with his efforts to bring about a short squeeze in Cedar's securities, Porcari made predictions, without reasonable basis, to registered representatives that "Cedar's" stock price would rise to a specified levels within specified periods of time. Also, the Commission found that Porcari advised groups of registered representatives to purchase specified amounts of Cedar's securities simultaneously in order to raise the market price of those securities.."

    Now in my defense of that charge, I didn't tell the crybaby short seller to get caught in his own trap by shorting almost 100% of that New Issue below $3 which only had a float of around a million shares. (sounds like a modern day "GoPro" but on a much larger scale, doesn't it?) Also, to be clear. If you read the "order" I was not convicted of anything by the SEC. I simple settled after fighting it for five years and a heavy five digit legal fee for me and who knows how much tax payer money for SEC costs, neither admitting nor denying any guilt and was NOT levied any fines, fees or disgorgement.

    Regarding the second "FINRA (then, NASD") allegation dated April of 1989, was a fine levied against the Brokerage Firm with many brokers of which I was formally President. The Petra situation had to do with the Firms purchase of some 8,700 shares of a stock purchased at $.30 a share (yes around $2,500 worth of stock) which did shortly go up to over a dollar a share, but collapsed back to our purchase price when the deal did not happen. We Never sold the shares we bought and ultimately wrote them off as worthless. The second part of the NASD allegation was generated based on a closing transfer audit after my partner and I sold the Firm a year earlier in 1988 and voluntarily left the Brokerage Business due to the advent of competitive Discount Brokers like Charles Schwab appearing. Since we were no longer "in the business" and had no interest in returning, we never fought the decision as we were not required to pay the fine unless we elected to return as Registered brokers.

    Back to your farcical article- Your Credentials;

    I noticed from your Techtonics bio that in your 15 years' market experience, you spent most of your time at Susquehanna and SAC Capital Advisors. In your report, you bring out the Companies lack of institutional following. The one point I agree with you has to do with the Companies small institutional following likely due to the Company not (yet) doing Conference Calls. Yes this is likely true since no Wall Street quality analyst is going to be the first to follow a young company that does not do quarterly conference calls or give forward guidance. HOWEVER: the Company has opened up the Annual Meeting to shareholders telephoning where questions are asked and answered. The very subject that you attempt to distort was a question that was answered at last year's call:

    Q: Will the Company start providing quarterly investor conference calls and some "guidance", once sales start to normalize?

    A: While we have confidence in launching our EV product offering in China, our progress is still in the early stages. The management is not ready to provide financial guidance at this point. However it's our intention to keep shareholders well informed on the progress. The Company will provide quarterly investor calls when the time is appropriate.

    If you know anything about emerging "Disruptive Innovations" in complex societies as the PRC has in China, you would know that any Company which initially relies on announced, but not yet completely implemented actions such as; Grants, Federal and Local tax breaks and subsidies, particularly a young company that come out of a totally unrelated business like Kandi, is going to be subject to a myriad of what seems like "never ending" changes before final long term reliable rules are implemented. Even now, while KNDI has finally received a small first installment of some $31.8 million covering only the PRC Subsidy payments for sales up to March 31, 2014, they, along with all other EV manufacturers are still waiting to be paid the Hangzhou City share of subsidies for all of the EV sold to date; pair this payment along with further PRC subsides up through Sep. 31. and you get in total, the amount now owed KNDI is likely over $100 million. The fact that the PRC did pay its first installment and also requires the local Governments to effectively "match" the PRC payments, takes out the "if" leaving only the "when" for future payments.

    While most US based Companies with a primary goal of enhancing their stock price would be willing to gamble with their future by premature public speculation through Conference Calls and Guidance, the heavily China politically connected CEO of KNDI knows when to speak and when to keep his mouth shut. That is how KNDI has jumped into the current #1 slot for Pure EV's in China (#2 behind BYD when Hybrids are included) and #4 Wordwide behind Nissan, Tesla, and Toyota and #9 when hybrids are included.

    "Plug-in the first half of global car sales rankings: Top Ten China accounted for two seats"

    Brokerage Research Recommendations.

    Once again, you prove you have not done your homework. KNDI does have at least two major China based Brokerages firms in China, Though China residents are forbidden from investing in US traded Companies like KNDI, these firms have still each given "Overweight" Ratings to KNDI.

    Citi Orient Securities - KNDI Ranking "Overweight"

    Shun International Securities- KNDI Ranking "Overweight"

    Your Two Former Hedge Fund Employers have been Two of KNDI's Largest Holders over the past year!

    But, irrespective of the fact you either didn't take the time to do a thurough research on the Company, or just chose to ignore the CEO's comment above on the call, I find it very interesting that of the few 50 institutions that have reported as being Kandi Shareholders over the past year alone, both Susquehanna and SAC are included (Go to pg.2 for SAC). While you can see from this link notorious SAC did sell the last of its position in Q2, what I find it even more interesting is that Susquehanna, your home town Philadelphia based Stock and Options Market giant is not only Kandi's current largest Institutional shareholder with some 735,000 shares, but is also one of the two Hedge funds that has participated individually to the tune of over $100 million total (including warrants) in every Kandi financing since the first in 2010, to include likely having 4.9% $30 million of the recent $71 million financing you speak of in your report.

    Now; "Inquiring Minds" might just wonder. "Is it just a coincidence that the only two 'Buy Side' firms you worked for in your short career on Wall Street, happened to have had enough confidence in the Company to be recently reported long shareholders of Kandi; or was this bogus report just a way for you to lash back at them for laying you off?" (Based on the poor quality of work you did on this KNDI slam based on "other peoples" antiquated and debunked attacks and maybe some disgruntled former Geely employee, don't for a second think that any intelligent investor would believe that you left a "posh" life as a Big Company Wall Street analyst with your "Bachelors of Engineering" degree to start your own research firm (Techtonic) to sell your independent research except to short sellers that are trapped and will pay for any trash, true or otherwise to be published)

    Karl Richter - Portfolio Manager

    ​Karl K. Richter is the founder of Tectonic Investments LLC. He has fifteen years of investment experience, including thirteen years investing in long/short equity fundamental hedge fund strategies.

    Before founding Tectonic, Karl was a senior portfolio manager and founding partner at AlphaOne Capital Partners. Previously, he had eight years of experience as a portfolio manager and fundamental research analyst at Susquehanna International Group and SAC Capital Advisors. He started his career in equity research at Robertson Stephens and Lehman Brothers in San Francisco.

    Education:

    Massachusetts Institute of Technology, Bachelor of Science, Mechanical Engineering.

    KNDI's Auditor

    Though KNDI has been publicly trading in the US since 2007, only in the past year did it become recognized enough to break though the $250 million mini-micro-cap barrier. They have used the same auditor for some six years now and have had no problem arise with the SEC regarding their auditor as is likely evidenced by SEC "Effective" rulings on more than a half dozen registration statement; (three so far this year). Which BTW, should likely give a "hint" as to the direction of the SEC Fact Finding Investigation you pointed out in your report that was first published in Kandi's last years 10k.

    KNDI/Geely JV- Your Comment is a Joke, Right?

    It must be because it is not backed up by the actual facts. However, it is interesting how you painted the "picture" of how Geely "passed off" an "idle factory" to the JV. But wait! Isn't this what Toyota, Tesla's early "Strategic Partner", did with your beloved TSLA's one and only manufacturing facility? However, what you forgot to mention was a year prior to the JV (not KNDI, but the 50-50 JV) taking over the Shanghai Maple plant, Kandi sold their new Changxing EV plant to the same JV.

    Kandi Technologies Completed China's First Full Scale Production and Assembly Line Specialized for Pure Electric Vehicles

    "…This new production line combines the advanced production equipment and manufacturing technologies. It also integrates the robust manufacturing concepts and experiences of Kandi technologies and its JV partner, Geely Auto…

    Mr. Hu Xiaoming, Chairman of Kandi remarked, "With the unprecedented enthusiasm and unwavering support from all levels of government leaders, Kandi Changxing will take full advantage of the technology strengths and expertise of Kandi/Geely Auto in the EV area to develop pure electric vehicles that consumers can afford to buy and drive while adopting practical business models to provide reliable and convenient services to our customers. Carrying the great expectation as well as the social responsibility, we are confident that Kandi will contribute its part in building the green economy in China."

    Mr. Yang jian, Vice Chairman of Geely Automobile Holdings Limited congratulates the completion of this new production and assembly line and commented, "We have full confidence with our partnership with Kandi to further expand in the electric vehicle market. With years of exploration, Geely has accumulated rich experience and technological reserves in R&D and marketing of electric vehicles. We believe that the pure electric vehicle industry will witness a great prospect of remarkable growth in the future".

    Or how about this joint announcement where Geely sent their Founding VP of Marketing who took Geely from nowhere to the #1 passenger car manufacturer in China to take over the same responsibilities at the JV. (funny how Geely's sales and stock price cratered starting about a month after they lost this SVP to the JV)

    Zhejiang Kandi Electric Vehicles Co., Ltd. Appointed Mr. Liu Jinliang as Vice President of Sales & Marketing

    "…Zhejiang Kandi Electric Vehicles Co., Ltd. ('the JV Company') appointed Mr. Liu Jinliang as the Vice President of Sales & Marketing for the JV Company, effective immediately.

    Mr. Liu Jinliang joined Geely Auto Co., Ltd in 1995, and from 2005, Mr. Liu was in charge of the sales for Geely Auto. Mr. Liu became the Vice President of Geely Auto Holding Group ('Geely') and General Manager of Zhejiang Geely Holding Group Automobile Sales Company Limited in 2007.

    Mr. Hu Xiaoming, the General Manager of the JV Company, comments, "The appointment of Mr. Liu Jinliang, one of the most seasoned and experienced sales and marketing senior executive in Geely, to become the VP for Sales and Marketing of the JV Company, demonstrates Geely's great support and focus on the new energy vehicles and the JV Company. We are confident that with Mr. Liu Jinliang in charge of sales and marketing, the JV Company will achieve great development in the new energy vehicle business."

    Mr. Li Shufu, Chairman of Geely Auto Holdings Ltd., comments, "New energy vehicle is the strategic business sector for Geely. After years' preparation and accumulation in technologies and marketing, especially the cooperation with Kandi, our new energy vehicle business has entered into a fast development lane. We believe that Mr. Liu Jinliang will utilize his experience and expertise, as well as deploy his resources and take action to make a break-through for the sales of the JV Company's new energy vehicles."

    You claim Geely has not transferred any of their auto technology to the JV. Once again, you didn't do your homework. Geely and KNDI jointly developed the EV version of Geely's #1 selling ICE car the Panda. This is four door EV designated the SMA7001BEV that is being used in both the carshare and long lease programs.

    And let's not forget this comment from a Dec. SEC 8K filing"

    "The JV's current panda 7001 pure EV is remodeled based on Geely's original panda vehicle. There are also other models from Geely that are in the process of being remodeled. Volvo is a part of Geely; at the current stage, we aren't working on any of Volvo's vehicle models."

    Self Dealing Through Kandi USA

    Not Hardly. As you pointed out, Kandi USA has always had absolutely nothing to do with KNDI. This is no different than if a Ford Motor Company heir decided to open up a Ford Master Franchise. However, I do remember before Kandi USA was started some four or five years ago. KNDI was selling their two door LSEV's to the prior distributor for slightly more than $4000 per car. By the time the end consumer had a chance to buy the car it had a sticker price of over $12,000. After Mr. Hu, KNDI's CEO's son started Kandi USA, the export prices increased some 25% and the end user price declined.

    Let Call a "Spade, a Spade".

    KNDI over the past four years, has been the target of more than two dozen attack articles such as yours by a half dozen sources. ShareSlueth alone (whom you credit with giving you most of your four and five year old data along with the personal attack on me) has published 13, with a 10 going back to when the stock was trading between $2.5-4.5 a share. During that time the reported short interest has grown from a reported one million shares or around 4% of the float, to the current 7 million shares or close to 30% of the float. (About the same percentage TSLA was when it finally broke out through $50 a couple of years ago)

    In all of those articles, never once has any writer, (to include yourself in the current piece) ever accused KNDI of even doing anything illegal, let alone accuse them of "Fraud". All that is ever attempted is to discredit by insinuation, distortion, innuendo, mis and dis-information in order to "raise doubt" in the minds of intelligent investors to sell their stock to let the shorts out of their trap. Why has the short continued to go up along with the stock price? IMO, because of these articles. They draw attention to the Company forcing inquisitive investors to do a little research. Each day more and more intelligent investors who take a little time to truly research the Company in current light; and take the easily attained massive information proliferated all over the China Media (by using Google Translator, search words Kangdi Electric Vehicles); pair it with the "common sense" that tells China with its very cheap electricity is the one Country that has no choice but to use EV's to help alleviate their pollution problems. And the answer is overwhelmingly simple: Investors would rather be long than short KNDI.

    In this current time of Stock Market turmoil and unrest, Nothing, I repeat, Nothing, happening anywhere in the rest of the World is going to negatively affect the growth of EV's in China or KNDI specifically. KNDI, with its miniscule $500 million Market cap and very strong cash heavy balance sheet increased by the recent $71 million $17.20 share financing; is going to likely increase its incredible business momentum in its trillion dollar potential sector in China. Even in catastrophe, the last stimulus that the PRC dare cut is the one to help cure their living environment. Air pollution already has the Government on the edge of Anarchy.

    Mr. Richter, it is your opinion that KNDI stock price should be somewhere between "0" and $7, you are certainly entitled to your opinion.

    It is my opinion that in the next few years KNDI will have a three digit share price. You would not argue that I am entitled to my opinion.

    As ridiculous as it might sound in attack articles about a multi-million share a day volume NASDAQ Company such as KNDI, as mentioned above, I have been personally accused of over-supporting the stock. This is not true. I could care less what the stock does on a day to day basis. However, I proudly admit I have been extremely supportive of the Company and its brilliant Management. I have been in KNDI continuously for over seven years and expect to be holding a position on my last days on earth. At age 67. I have been in the market since 1974 when the Dow traded as low as 576 and watched the birth of most of "today's" tech giants without being smart enough to participate.

    IMO, at this early stage, KNDI, while still legitimately speculative in the eyes of many, has potential that far exceeds any of those missed passed opportunities at equivalent age levels. I could care less who buys or sells the stock. It's their money and they can do with it what they want. My writings are only to help "Level the Playing Field" and not passively allow investors to sell or not partake for the wrong reasons.

    Disclosure: The author is long KNDI.

    Oct 12 4:24 PM | Link | 27 Comments
  • Kandi Tech: The Real Truth About China's Currently Uncontested #1 Pure EV Developer
    • Contrary to some with an "agenda" KNDI's Financials are clean, clear and informative to anyone with basic knowledge who takes the time to actually read them.
    • KNDI sell its EV Products in a similar way that TSLA sells it Powertrains and Battery's to its Strategic Partners, Toyota and Daimler
    • KNDI's infrequent battery sales are done with a profit in a clear and easily understood way
    • KNDI share of EV revenues for both CarShare and Lease programs is disproportionally higher by as much as 90% over its JV partner
    • Don't believe the above? Then read on for supported facts, not opinions and learn why KNDI .

    As the first Seeking Alpha Author to ardently follow NASDAQ listed, China Based Kandi Technologies (NASDAQ:KNDI) going back to Sept. 2010, with my last article in December 2013; I thought I could quietly live out my retirement years knowing that KNDI was in the capable hands of intelligent investors and a whole new generation of thorough researchers who have taken the time to not only read a 10K, and 10Q, but actually understand what they are reading. But under the old Wall Street adage; "You can't make this 'stuff' up'" along comes a new first time Seeking Alpha writer whose bio states he is a Pharmacist (great credentials if you want to opine on biotechs but likely questionable on China EV's) who shocks Wall Street with a well-timed 20 minute before the market close attack article on KNDI driving the stock down 13% by the close.

    The article was no surprise since this soon-to-be new SA author was claiming all day, in a reminiscent fashion of a recent high profile shortseller, but on StockTwits and various other chat boards rather than CNBC that after being long KNDI, he sold all his stock upon reading KNDI's three month old Q1-10Q and also went short. He went on to tweet for 24 hours prior to his report warning all longs that he was going to expose all the bad things he found by publishing his first Seeking Alpha article. Needless to say, even I, who probably know more about the company and what was in the 10Q than any outsider had a smidgen of apprehension.

    As a battle worn veteran of having to successfully rebut some 30 attack articles on KNDI over the past four years from $3 on up, I thought nothing would surprise me. But this one was a first. It was the first attack article that I immediately knew had everything wrong.

    Likely advanced notice of this article though StockTwit is what caused the stock to drop more than a dollar yesterday morning pre-open and continue down for the first hour or so after the opening. The author was quiet for the first few hours until the stock made a hard reverse and actually went green above $21; up as much as $.50. At that time he started Twitting again with this post: "Careful here. All longs, last warning. Know what's in the 10Q".

    This is a classic example of the time honored trick used by short selling attack writers. Create doubt by using a "big lie". Nothing is more disconcerting, and rightfully so, than for a company to have "fiddled with the books", particularly on its SEC filings. But SEC financial filings are so complex you would be hard pressed to find even a CPA that could explain 90% of what is in a companies 10k or 10q. So even if you do read the 10q and find nothing wrong (as is the case of KNDI) you still have the "lingering doubt" that maybe you missed something.

    I am confident in saying "as in the case of KNDI" regarding this 10Q more so then I would be saying the same thing about any other Companies 10q or even some past KNDI 10q. Why? Because 10q's are not audited like a 10k, so they are usually just quickly, if at all, perused by the SEC. BUT, in the case of this Q1 10q I believe it is somewhat a different story. Why? Because KNDI received SEC clearance by way of an "Effective" ruling on June 6th to issue new registered shares underlying some 2010 warrants. The timing of this Effective ruling just under a month after the 10Q was filed is a strong indication that the SEC did likely review the 10q along with the audited year end 10k for sure. There is nothing to stop the SEC from holding up such a ruling if they feel there is a significant problem with a company. It is done all of the time.

    Now I admit, there is nothing wrong with he telling investors to read the 10Q. After all, since this last 10Q he is referring to came out almost three months ago, the stock has traded over 160 million shares and rose 60%. One would think that many investors had read the 10Q by now and came to the same conclusion as I had. I read it several times and found absolutely nothing wrong with the content and the way it was reported.

    But true to the short seller attack article manual; "Don't worry about the facts, just make the headline scary", up pops the below article in the last half hour with this Headline:

    "Kandi Technologies' 10-Q Reveals Phantom Sales Growth And Other Serious Concerns"

    Scary headline, huh? Even more scary if it comes out in the last few minutes of trading before anyone can have time to read the whole article. If contents of this article was such a big deal, why has it taken three months and a rookie author to be the first to expose it? I'll tell you why, because there is nothing to expose. Anyone can take any company filing and even if they don't know anything about the company, (or have an agenda like being short the stock) can spin it anyway they want. Under 1st amendment rights, I can make up whatever I want and put it in print. Now I am not speaking of KNDI specific here, but most companies would rather ignore even personal attacks rather than try to make a legal issue out of it. Why? Ask Herbalife. Why don't they sue Ackman? Because that is exactly what Ackman wants. Once a suit is filed, the defendant has the right to all the corporate books and files of the Company, and that could include trade secrets. So you see, no company wants to get into that type of situation. So when you see an "over the top" headline, remember, the short seller knows it is a lot easier to scare someone out of a stock, then to scare them in. With KNDI's incredible 24% of the float reported short, the shorts in this stock have a lot to lose and will stoop to almost any level to "buy one more day". It sure didn't work for TSLA when it had its biggest percentage short ever while it was a $30 stock and it isn't going to work against KNDI. The short seller waited too long, fundamentals will now over-run him.

    Now let's look at what this young self-admitted short seller is trying to sell you;

    Here are his opening bullets:

    · Most KNDI electric vehicle sales are to KNDI subsidiaries, not to the end-user.

    · The new EV parts business launched in Q1 resells battery packs at a loss to create the illusion of rapid company sales growth.

    · KNDI EV and parts sales appear to be related to inventory buildup for the Carshare project and may not be reflective of end-user demand.

    · KNDI appears to only have a 9.5% economic interest in the Carshare project.

    · There is no official company data to show how the Carshare project is doing financially.

    Below are my point by point responses debunking each under the copied bullet:

    Most KNDI electric vehicle sales are to KNDI subsidiaries, not to the end-user.

    This is partially correct, but only to the extent that KNDI does not sell Electric Vehicles to the JV per se, at least as of the date of the subject Q1 10Q, it sells "EV Products which are addressed below. But before wrongly opining on this, the author should have taken the time to learn this which is explained in the 10Q. But for now, let me try to make this simple. KNDI through its wholly owned subsidiaries makes and builds about 90% of the completed Vehicle excluding the battery, but including the body, motor, AC, and controllers which it refers to in the 10Q as "EV Products". It then sells this almost completed vehicle to a 50/50 Joint Venture with Geely Auto , China's #1 ICE (gas powered) car manufacturer. The joint venture then adds the battery which is also provided by KNDI, but as "EV Parts" and a few more finishing touches and then sells the completed cars to a minority owned subsidiary (9.5% owned by KNDI) called Zhejiang ZuoZhongYou (ZZY) The balance of the sub is owned by Geely 9.5% and two Shanghai based Venture Capital(pg-8) firms 81%, Jiaxing Jiale Investment Partnership Enterprise and Jiaxing Jiazheng Investment Partnership Enterprise. It is ZZY who puts the purchased completed EV's into the CarShare program as well as manages it.

    Now I don't know what is so sinister about this arrangement. These type of Partnerships and JV's are done all the time Worldwide. When When NASDAQ listed Tesla Motors (TSLA) sold its powertrain and battery packs to Toyota for their RAV-4 EV or to Daimler the complete power train for the Mercedes-Benz B-Class Electric Drive, launching this year, does anyone think TSLA should not be paid? Or the arrangement is a scam? Of course not.

    If the author looked at the KNDI PR put out on July 14 Headlined:

    Kandi Announces Its JV's Sale of 4,114 Kandi Brand EV in the Second Quarter, a 238% Increase From the Previous Quarter

    JINHUA, China, July 14, 2014 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company" or "Kandi") (KNDI), today announced that Kandi Electric Vehicles Group Co., Ltd. (the "JV Company"), which is a 50/50 joint venture between the Company and Shanghai Maple Guorun Automobile Co., Ltd., a 99% owned subsidiary of Geely Automobile Holdings Ltd., sold 4,114 Kandi brand Electric Vehicles ("EVs") during second quarter of 2014, a 238% increase from 1,215 EVs in the first quarter of 2014. Kandi expects to report its second quarter financial results on August 11, 2014…

    It couldn't be any clearer. The JV sold the Cars, all 4114 of them in Q2 Worth some $50 million. But these cars didn't materialize out of thin air, KNDI, as discussed in the prior paragraph, sold the 90% completed EV's to the 50/50 KNDI/Geely JV who in turn sold them to an "End User", Zhejiang ZuoZhongYou Electric Vehicle Service Co (ZZY) to put in the CarShare program. The fact that KNDI happens to own a small 9.5% interest in ZZY is a bonus for KNDI and its shareholders. But any common sense investor would have to agree that ZZY is 81% owned not by KNDI, but by the two Venture Capital Firms who put up the money for the project. The fact that ZZY is included as a sub of KNDI should not be surprising. This CarShare project is a new concept developed by KNDI's CEO, Hu Xiaoming so can you blame the VC's for wanting KNDI to assist in running this new business model?

    Next bullet busted.

    The new EV parts business launched in Q1 resells battery packs at a loss to create the illusion of rapid company sales growth.

    Once again; partially true, KNDI did sell the battery's to the JV. But if the attack writer would have spent a little more time researching the Company, he would have noticed that KNDI bought these batteries (and a few more) under contract before the JV was finalized on Dec. 24, 2013 from Wanxiang on Oct. 28, 2013. Here is the 8k that was filed at that time and the Company Press Release:

    Kandi Technologies Announces Sales Contract for Lithium Iron Phosphate Battery From Wanxiang Group Corporation Valued at RMB 182.4 Million or Approximately USD 30.3 Million

    October 28, 2013 08:35 ET

    JINHUA, China, Oct. 28, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the 'Company' or 'Kandi') (Nasdaq:KNDI), announced today that Jinhua Kandi New Energy Vehicles Co., Ltd. ("Jinhua New Energy"), a subsidiary of Kandi, has signed a sales contract to purchase 12,036 cases of 80V66Ah lithium iron phosphate battery from Zhejiang Wanxiang Ener1 Power System Co., Ltd ("Wanxiang Ener1"), a subsidiary of Wanxiang Group Corporation ("Wanxiang Group") to meet the battery demand for its electric vehicles ("EV") for Hangzhou public EV sharing system (the "Project"). Each case of battery has 80 volt and 66 Ah (Ampere Hour) capacity. The contract is valued at RMB 182.4 million or approximately USD 30.3 million when all the purchase orders have been fulfilled.

    Wanxiang Group is China's largest automotive components company and its subsidiary Wanxiang Ener1 is one of the largest and most advanced battery manufacturers in China. Wanxiang Ener1's products have been well recognized and praised at the 2010 World Expo in Shanghai and 2010 Asian Games in Guangzhou…

    And here is the 8K and KNDI PR which shows that the Transfer of Assets creating the JV didn't happen until two months after KNDI tied down the battery deal with Wanxiang.

    Kandi Technologies Announces Its Subsidiary Zhejiang Kandi Electric Vehicles Co., Ltd. (the "JV Company") Signed the Ownership Transfer Agreement With Shanghai Maple Guorun Automobile Co., Ltd

    December 24, 2013 08:35 ET | .

    JINHUA, China, Dec. 24, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company" or "Kandi") (Nasdaq:KNDI), announced today that its subsidiary Zhejiang Kandi Electric Vehicles Co., Ltd. (the "JV Company") signed the Ownership Transfer Agreement (the "Agreement") with Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Maple"), a 99% owned subsidiary of Geely Automobile Holdings Ltd. ("Geely") on December 23rd, 2013...

    Now the Attack Author states in his article:

    "EV Parts" Tactic: In Q1, a new

    "EV parts" business was, according to the 10-Q, launched and brought in $25 million in sales. The 10-Q states that this revenue was entirely from the "resale" of battery packs at a loss after considering "labor and overhead costs."

    Note that the author puts this in Quotes, I assume to make the reader think what he says comes for the 10Q. I don't know whose 10Q he got that quote from, but I can assure you; nothing resembling his quoted statement is anywhere in the KNDI Q1 10Q. While it is very likely KNDI didn't make much on the battery sale, as shown by the one time drop in Gross Margins in Q1, KNDI, as seen above, did spend over $30 million buying the batteries in October, and subsequently had to "book" the transfer after Dec. 24th somehow, so they logically did it with a "sale" following GAAP accounting rules.

    Now let's look at this transaction as it pairs with the author's sinister motive theory. Don't you think if KNDI really was just doing something to "cook" its numbers by selling to its supposed "own" subsidiary, the Company would have done it at some sort of significant profit? And for that matter; wouldn't it have made a good PR at the time the transaction took place? Think about it.

    Let's move on to his next bullet.

    KNDI EV and parts sales appear to be related to inventory buildup for the Carshare project and may not be reflective of end-user demand

    Now this one, as ominous as he wants you to believe, is probably true to a point. I suspect that most manufacturing Companies do build up inventory in excess of immediately known demand but since KNDI has manufactured different amounts of PEV's in the first half of 2014 as can be seen by the charts and graphs below, including a lesser number in the Month of June, it certainly appears they are building for "reflective end-user demand".

      

    China Pure EV Production

     
           
     

    Jan

    Feb

    Mar

    Apr

    May

    Jun

    Kandi/JV

    0

    200

    943

    1536

    1564

    1014

    Total China PEV

    171

    409

    1894

    2562

    3915

    3777

    (Click on month for link to confirmation article)

    While the attack author may try to paint a picture of subterfuge and "Phantom" production on KNDI's part, a fact he cannot change is that in spite of only having received its first subsidy payment a few weeks ago, KNDI is clearly #1 in production to date in all of China as is easily corroborated by clicking on the various "month" links in the table above. He may be able to confuse unknowing US shareholders, but he cannot refute the thousands of China Media articles, month after month year to date publishing that all-telling statistic.

    And on to his next point:

    KNDI appears to only have a 9.5% economic interest in the Carshare project.

    If you have read this far in my rebuttal, the 9.5% he states should sound familiar. Yes, not surprising he is either again confused, or is again trying to purposefully obfuscate the "facts". As I explained above, the 9.5% is KNDI's percentage ownership in the Operating Company, ZZY. Notice how he leaves himself with "cover" by using the word "appears". Well to anyone who read the 10Q, it is not a matter of "appearance". It is a matter of fact that KNDI, the US public company has closer to 90% "economic interest" in the CarShare program.

    And his final opening bullet:

    There is no official company data to show how the Carshare project is doing financially

    Again, to an extent, he is correct. Since KNDI does not own over 50% of the JV, and only 9.5% of ZZY, FASBI rules do not allow KNDI or any company for that matter to "consolidate" a subsidiary's numbers with the parent's numbers other than as a simple "line item" in the P&L called "Share of profit after tax of JV". However for transparency, KNDI did provide JV results in a "Note" to the 10Q. Anyone who really read, or if he really knows how to read the 10Q should have seen this P&L on Page 29 which clearly showed that the JV had Sales of $34.9 million, gross income of $4.3 million and a profit of $1.7 million in Q1. Below is a reproduction of the 10Q table.

    Now if you have been following what I have written so far, you should understand that there is no direct relationship between KNDI the public company and the CarShare program other than KNDI is the sole supplier to the JV of the "EV Products". So why would he or any knowledgeable investor expect to see "official data" on the CarShare project in KNDI's, independent public companies filings? What any investor in any public company should be concerned about is if their Company is generating sales for their products in a conventional way. KNDI is clearly doing that.

    To address some additional accusations

    He says "Kandi has a complicated organizational chart" With that statement it appears he has little knowledge on setting up a corporate structure for a future multi-billion dollar, multi-national company. With a total of 14 wholly and partially owned subs, considering KNDI is a China based US listed company now expanding to four additional provinces and over a half dozen cities, paired with their legacy and export business, the number of subs is quite small. I suspect what has him confused is that for transparency KNDI actually posted its Subsidiaries in their filing, something most companies usually don't do. Ever see TSLA's Organizational Chart? I haven't because they don't report it. Look at this list of Subsidiaries Morgan Stanley has. If you care to count them you will find over 1,100.

    EV Parts" Tactic:

    He said (and this is a direct copy and paste):

    "In Q1, a new "EV parts" business was, according to the 10-Q, launched and brought in $25 million in sales. The 10-Q states that this revenue was entirely from the "resale" of battery packs at a loss after considering "labor and overhead costs." The 10-Q does not say who the battery packs were sold to, but one could assume the majority was sold to the JV with Geely or other KNDI subsidiaries. The more concerning part is how KNDI spun this to boast 174% revenue growth from $14.7M to $40.2M. Without this questionable tactic, revenue growth would have been roughly flat. This is worth repeating: Without the launch of the financially engineered EV Parts business in Q1, revenue growth would have been 3.4%, not 384.5%."

    For starters I have no idea what he is saying or where he got this totally confusing paragraph from; certainly not from the 10Q as he quotes it. The 10Q simple says the following about EV Parts on page 36:

    "EV Parts

    During the three months ended March 31, 2014, our revenues from the sale of EV parts was $25,014,066. We started this business in the first quarter of 2014, and our business has consisted primarily of the sale of battery packs and related parts."

    And the last Italicized line three paragraphs above makes no sense at all. He likely got the 384.5% growth from this section of the 10Q, also on page 36, which has nothing to do with the EV Parts section and simply says:

    "EV Products

    During the three months ended March 31, 2014, our revenues from the sale of EV products increased by $6,641,054, or 384.5%, as a result of a 105.3% increase in unit sales and a 136.0% increase in the average unit price compared to the same period of last year. The significant increase was mainly attributable to the newly-added EV model -Kandi Brand SMA7000BEV, a five-door and five-seat vehicle, and SMA7001BEV, an improved model of electric vehicle, both of which are sold at a significantly higher prices. The increased unit sales were driven by sales to Hangzhou Public EV Sharing System (the "Carshare" Project).

    As you can clearly see, the 384.5% has nothing to do with the $25 million battery sales.

    Now let's try to bring this rebuttal to an end with my addressing the four bullet points in his conclusion.

    He amazingly claims his 100% erroneous article answers the four following questions:

    · Why there is no analyst coverage

    · Why there is very low institutional ownership (mostly just index funds

    · Why there is a large and growing short position

    · Why KNDI recently filed a $300M shelf offering

    Really? I don't think so. But let me try to answer them accurately.

    There is currently no US analyst coverage for several reasons, but mainly three; Analysts are not going to take a risk in being the first to "write up" a low price company (particularly foreign unless; 1) The Company signs up with a "full service" Investment Banking firm with analysts to raise money for the Company or; 2) Until the Company starts giving earnings and revenue "guidance" and sponsors Investor Conference Calls; and 3) The Company pays for a Research Report.

    In KNDI's case,

    As a small Chinese company that did not attempt to raise any serious money until after the 2011-2012 Chinaphobia era when all Chinese Companies were being written up as frauds by short sellers; its only option to raise money was through "Transactional Hedge Funds". They typically don't have analysts. But they did tie up the Company with Right of First Refusal on Subsequent Offerings blanking out prospective larger full service firms. All three of KNDI's offerings to date were done by the same two firms. At the Companies last Annual Meeting in Dec. when asked by a shareholder if and when Conference Calls and Guidance would begin; the CEO stated and I paraphrase, once the Government firmly put its EV plans in place and the Company knows the ground rules for EV sales in China, both would begin. And finally, the Company has had no interest in "paying" someone for a report.

    However, over the past two weeks, Analyst coverage was initiated on KNDI in China at two China based firms, both with "Overweight" ratings. Old line Haitong Securities and Shun International Securities. In reality, I feel much more comfort that Analysts in a Companies Home operating area endorses their stock even though 95% of their retail clients cannot buy US listed Companies, then some second tier US firms. If anything not kosher is going on in the business, the home grown firms will report it first.

    2) While the increase above ten dollars in Q1 did see the appearance of some Institutional names such as Morgan Stanley, Investco, JP Morgan Chase, Calpers, WFG Group and a few dozen lessor names, and it is likely when the new list come out on Aug. 15, more will be added due to the higher price and volume. Until the company starts doing Conference Calls and giving Guidance or having other analysts following, I wouldn't expect massive increases in Institutional holdings.

    3) Why a so large a short in KNDI? The same question could be asked as to why was there a large and growing Short Position in TSLA. Though more shares outstanding now, TSLA hit its max short outstanding of over 30 million shares when its stock was trading in the $30 area. Over the years many hedge funds did very well in attacking China stocks in particular. So KNDI is a China stock that had an inordinately high short for some four years now.

    4) The Company filed a $300 million shelf offering for the same reason TSLA did when its stock was in the low two digits; with the expectation of triggering the shelf when the stock gets to the high double digits to triple digits. The Founder/CEO and largest shareholder has not built up current annual capacity to over 300,000 cars and through MOU's with several cities and in four Provinces an additional 300,000 capacity expected to be in place by 2016-17, just to have these new facilities collecting dust for the next decade.

    In conclusion

    You have two clear choices here. Either believe what I have put together here which should effectively challenge100% what Mr. Rabizadeh, a trained Pharmacist writing his first article has delivered to you, or believe me with my over 40 years' experience as a Wall Street Pro.

    I have followed and endorsed KNDI for seven years now and visited the Company in China twice at no expense to the Company. It is not my intention to tell anyone to buy or sell this or any stock. But it is my intention to get the "real" story out so investors can make educated decisions and not sell for the wrong reason.

    One thing for sure; when I last visited the Company in September of 2013, I asked the CEO if he felt KNDI could be a hundred dollar plus stock in a few years. His answer with an upward moving thumb was "Higher". I believe him and I will be here to see this achieved. It is up to each of you to decide if you want to be here as well. At that time, neither the stock, nor the market will care who is still around.

    Just a last reminder: KNDI's Q2 financials will be reported on Monday Aug. 11. I expect a five to six fold increase in year over year revenues and some $.25 + GAAP net income up from a $.03 Q2 loss last year. What is most impressive is that all this has been created before the subsidies finally began with an initial $31 million payment for the PRC alone. I also expect total subsidies paid for the first half of 2014 to exceed $70 million. While KNDI does not get the subsidies directly, that cash going to ZZY will likely be all plowed into buying more EV products from KNDI. If that is not enough for you, then I am sure Mr. Rabizadeh would be happy to have you join him in his self-proclaimed short position.

    Disclosure: The author is long KNDI.

    Tags: KNDI, TSLA
    Jul 25 4:43 AM | Link | 50 Comments
  • The Collapse of the Big Name China Stocks: OMG! All China Stocks Must Be Frauds. Right? Not So Fast…

    Those who have followed my Seeking Alpha articles know that in spite of spending eight days in China last November visiting several companies, I have only written positively about one US traded China Stock; Kandi Technologies. (NASDAQ-KNDI) I liked it at higher prices, and based on recently reported events, I love it now. But that is not what this article is about. This article is about a current market sector environment and a number of stocks that I personally wouldn’t buy. Not because I have any problem with them, simply because I only take long term positions in stocks that Wall Street doesn’t know or care about, but where I have spent many hundred, if not thousands of hours doing my own due diligence. However, based on my 37 years as a market professional with more of a Psychology rather then Business educational background, I think I know a short term market disconnect when I see one and history shows it is times like this when longer term reward potential is at its highest for savvy investors.

     

    I am not going to waste a lot of time giving the background of how we have arrived at this point of disconnect between stock price and business performance of the vast majority of US traded China companies. The various forms of media have done a more then sufficient job of creating this environment whereby fear throws out logic. If somehow you have missed what is going on in this sector, then you shouldn’t be investing in the Market. But I will unconditionally state that not all, not even a vast preponderance of China stocks, are purposely fraud infested. However you wouldn’t know this by following the media or looking at the sector stock performance over the past few months. Credit for this phenomenon is certainly given to short sellers and “attack” blog writers who have created a “magic bullet” to create instantaneous assured profits from short selling. But don’t for a second buy into their claim that proper due diligence is the primary reason why the stock of an attack target drops like a rock within seconds of the release of their articles. I suspect the dramatic drops are more so attributable to short sellers capitalizing on Market Psychology of the old adage; “It is easier to scare an investor out of a stock then into a stock”. This point is further proven by the immediate collateral selling in other sector stocks, no matter how unrelated, in just minutes from the release of a 20 to 40 page target article.(who can read that fast?) The thought of this broad based power now being realized by even ignorant attack writers with short selling in mind should be chilling to all to say the least. Emboldened with this psychological tool, virtually all stocks, China or otherwise, could in the future be more vulnerable then ever to this brilliant form of manipulation.

     

    I have read and researched a number of these articles and their targets and have found several which have uncovered activities which seem to range from at least suspicious, to bizarre, to fraudulent in appearance to a western way of thinking, but to broadly blame any such activity as purposely fraudulent rather then considering the possibility that cultural or translation differences may be the cause seems “over the top”. But in all fairness to the writers; even if they did want to be equitable to the target company and perhaps present a draft of their article in advance for contributory company comments, corporate securities counsel would most likely not allow clients to respond in fear of violating SEC selective disclosure rules. So yes, congratulations to the attack writers and their short selling friends, they have found their magic bullet and regrettably for the retail investor, they have no friend in the Regulators who are supposedly empanelled to protect them.

     

    Now on to my main theme here

     

    A month or so ago, many, including myself, felt most of the Chinaphobic sector carnage was likely past. As an old Viet Nam era Marine Corp captain, to my investor friends I had likened the small cap China stock environment at that time of stagnant prices and much lower volume to that of a completion of a combat ”fire fight”. I was suggesting it was time for the bold to stick their heads out of the foxhole and go on the offensive. But even to my supposedly experienced amazement the attacks writers just boldly moved on from the small caps to the “institutional” darlings like Longtop (NYSE:LFT) and Sino-Forest (OTC:SNOFF). Up until a couple of months ago Institutional investors in the big named “Chinas”, were snickering at the carnage the shorts were wrecking on the small Chinas. These confident “Funds” kept driving the big Chinas like Baidu (NASDAQ-BIDU), China Dangdang (NASDQ-DANG), Yoku.com (NASDAQ-YOKU),Sina.com (NASDAQ-SINA), New Oriental Education (NYSE-EDU), Perfect World (NASDAQ-PWRD), Shanda Interactive (NASDAQ-SNDA), Trina Solar (NYSE-TSL), China Yuchai (NYSE-CYD) etc. to newer “highs”. But now let’s fast forward to earlier this week. The “tape” says it all...

     

     

    Symbol

    BIDU

    YOKU

    DANG

    SINA

    EDU

    PWRD

    SNDA

    TSL

    CYD

    April High

    154

    69

    26

    145

    128

    29

    54

    30

    33

    Recent Low

    118

    28

    11

    78

    98

    18

    35

    19

    19

     

     

    To the average investor, seeing the recent rapid breakdown in all the big names along with hearing the incessant media rants that “all China stocks are frauds”, would likely lead the unknowledgeable investor to the belief; “OMG!, the media is right, they are all frauds”. And of course this belief is just further unfairly compounding the problem in the lesser known names. But could it be true that all of these big names are really all frauds? Of course not. It is my opinion that what we are seeing at this moment is Institutional “Window Dressing” as we approach the end of the quarter. Mutual Funds in particular are concerned that with all of the mostly bogus media about China stocks in general, their investors might consider the fund manager “idiots” if shown holding any China stock in the portfolio by quarters end. So “ethnic cleansing” Wall Street style is running rampant.

     

    If it turns out that my above theory is true, it is likely (assuming no more specific “big name” fraud accusations appear) there could be a substantial rally in the big names after Quarters End settlement date passes. IMO, if the big names do rally, this should take the pressure off a number of the smaller names. If Wall Street’s Chinaphobia does begin to quiet down in the new quarter and common sense returns, then the inevitable realization that China is the real growth story for the balance of this decade should reappear and irrespective of what downturn may or may not lay ahead for US stocks, the real fortunes will likely be made in China stocks for a long time to come.

     

    This too shall pass

     

    As painful as this has been for traditional long term investors and honest China companies who have suffered during this unique period of time, this too shall pass. While no “market” is pure of those with fraudulent intentions, I suspect that time will tell that those China companies who survive this bloodbath and come out fundamentally unscathed, will inure significant benefits for two reasons; Firstly, they will have survived a regulatory and accounting review more intensive than any US based companies have ever had to endure and secondly, as US investors once again focus on investing in the fastest growing and largest economy in the world, there will be a much smaller arena of China stocks to chose from.

     

    Dart Board Portfolio-How to outperform any US Index over the next year+.

     

    Trying to safely choose the best stocks in the China arena may likely be a fool’s errand for the unsophisticated investor. But if you have a large enough sum with which to speculate, perhaps you should go to www.allchinastocks.com and print out the list of US trading China stocks. Tack the list to a wall and throw 20 darts and put 5% of your cash in each issue. Even if two or three of your choices yet fail, it is very likely that the balance will more than make up for the losses and handily outperform the S&P, Dow or any other US Index. (Perhaps some ETF consolidator might be wise to take this “tongue and cheek” solution at heart.)

     

     

     

     

     




    Disclosure: I am long KNDI.
    Tags: KNDI, BIDU, YOKU, DANG, SINA, EDU, PWRD, SNDA, TSL, CYD
    Jun 23 6:13 AM | Link | 2 Comments
Full index of posts »
Latest Followers

StockTalks

  • $KNDI now doing BMS for batt. plus newer designs gets more than double historical prices per EV.New KNDI mid size luxury MSRP $38,000 $TSLA
    4 days ago
  • $KNDI sale announced today $21.5 mill for 1000 cars brings Q4 sales up to over 4000. Expect over 5000 total for Q4 or $100 mil + > double Q3
    4 days ago
  • $KNDI PR Chengdu (CH 4th lgst city)1000 EV deliver yonly part 1 of 5000 EV order announced by ultimate buyer. http://bit.ly/1zsUCYw
    4 days ago
More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.