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Richard Pearson  

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  • How U.S. Investors Got Punk'd By Kandi [View article]
    What part of your comments do you think merits a response ?

    I had no idea that sharesleuth was publishing anything today on Kandi.

    Maybe you should actually read my articles and evaluate the facts rather than just rejecting anything that disagrees with your original bull thesis.

    Had you listened to me before, you could have sold at over $7.00 instead of in the $4's. Your welcome.

    Keep in mind that I was nice enough to offer to speak with you by phone while I was on vacation, but you had no interest in speaking.
    Jul 10, 2013. 08:20 PM | 13 Likes Like |Link to Comment
  • What The Market Missed On Kandi [View article]
    Mr. Porcari,

    Your comments above are substantially inconsistent with our conversations by phone. you should think carefully about what you said by phone before making the above statements publicly and in writing.

    If necessary, I will arrange to have a verbatim (word for word) transcript produced so that you can revisit your claims on the phone.

    you made it clear that I should join your mailing list at in order to receive the "updates" on Kandi. When I asked you about CorStrat, you told me that it was for corporate strategy and investment banking, but that you are no longer using the company to conduct business because you are emailed.

    I emailed you and asked you to add me to that mailing list, but you did not, after my article came out.

    you also made it clear that you attended multi city roadshows to bring investors to Kandi in different cities, you mentioned Atlanta and New York. You also told me that every time they come to the US that you accompany them on roadshows.

    One of us is either lying or mistaken.

    You may wish to reflect back on the claims that you made during our conversation. I have ample reason to be precisely 100% certain regarding the statements you made on our calls.
    Jun 23, 2013. 10:53 PM | 8 Likes Like |Link to Comment
  • Neonode: Investors Feel Duped, Shares To Fall Further [View article]
    I find it comical to see the criticisms from these pumpers even after their pumps have failed so badly.

    Here is what the pumpers do with these stocks (KNDI, ONVO and NEON all fit the same examples)

    1. Write hyper bullish articles, predicting an astronomical share price (usually around $20-30 for each of these)

    2. The pumpers don't have any expectation that the share price will even come close to these levels. They just want a rise of 20-30%

    3. They make analogies to other (more established) companies which have much larger market caps

    4. When the share price rises: the company issues stock, the insiders sell, the pumpers dump.

    When I wrote about KNDI, the stock was at just over $7. Art Porcari was pumping it in almost 20 articles, claiming that it would be a $30 stock. I predicted that an equity offering and a dump were likely. Within days, the company issued a huge pile of stock and the stock quickly fell to $4.50. It is comical that Porcari is now writing to criticize me here. The stock is at around $5.25 (20% below where I highlighted it and certainly far below the $30 he was hyping it as)

    ONVO was also at around $7 when I wrote about it. Pumpers were calling it a $20-30 stock (some were saying $100). I noted that the company was overvalued at half a billion (they don't even have a sellable product) and that an equity offering would be soon. They quickly sold stock and it went to $4.44. Now the pumpers are still pumping it on these is at about $5.25...20% below where I highlighted it...and far below the silly pump targets of $20-100.

    Now we can see NEON. It is a company that has churned out hundreds of announcements which are identical to the LG Samsung news. This has resulted in minimal revenues and zero profits since 2009. Yet Tech Guru is telling us that this identical news will send NEON to $27. Instead the insiders sell a few million shares. They then upsize the deal so they can sell more (without any additional proceeds to NEON - just for their own pockets). Then they take 100% of the greenshoe option to sell even more shares (with no proceeds to the company - only their own pockets).

    I certainly do not expect pumpers such as Art and Tech to congratulate me on my thorough analysis or on my track record. The criticism should be expected.

    NEON is being manipulated to allow people to occasionally dump. This will become evident within about 2 weeks, just like the other pumps. This is why is keeps popping but the gains never hold.
    Sep 11, 2013. 05:55 PM | 6 Likes Like |Link to Comment
  • How U.S. Investors Got Punk'd By Kandi [View article]
    I see that we once again are growing many comments.

    I will try to get back to as many of them as possible over the next few days.

    In the meantime, I suggest you re-read both of my articles and this time try to decide how much faith you want to put in Kandi vs. me.

    Most readers are long the stock and are so busy trying to attack me that they are ignoring the problems with Kandi. This is not going to help your investment case.

    At the time of my last article, the stock was over $7.00. I made it clear that a financing was in the works. Many ardent longs were quick to attack me for such a prediction.

    Anyone who listened to me got out when the share price was 40% higher. Even if they didn't like what I had to say or the fact that I was (and still am) short the stock.

    Yet many people continue with the personal attacks to divert attention from the problems at Kandi.

    Like I said, I will get back to as many comments as possible over the next few days.

    In the meantime, good luck.
    Jul 11, 2013. 12:09 AM | 6 Likes Like |Link to Comment
  • How U.S. Investors Got Punk'd By Kandi [View article]
    Look at your option chain screen.

    Out of the money options are not worthless just because the stock is below the strike price. There is huge time value involved here.

    Out of the money options have huge value and can be sold or used as a hedge.
    Jul 10, 2013. 11:44 PM | 6 Likes Like |Link to Comment
  • A Troubling Visit To Cleantech Solutions [View article]
    Not sure what you mean by "agenda". The fact is that this company simply has no business or employees which is why is is a $12m market cap stock.

    Had this stock simply died a slow death down to the penny pinks sheets, I would never have even bothered to write about it. But instead the company did a reverse split to take the stock up from 25 cents to $2.50, then the earnings hype and a blatant pump article took the stock close to $5.00.

    That is a story worth writing about for sure.

    When I visited this company, I had been looking for long ideas and this certainly wasn't going to be one. With the stock then at $3.00, it didn't appear to be much of a short opportunity, so I simply wrote it off as a waste of my time and didn't really follow the company afterwards.

    When the stock nearly doubled this month and has a nominal price of close to $5.00, I received a number of calls from people asking me if I was familiar with the company. Obviously I am, so I wrote it up. That is my agenda, pure and simple.

    Would be interested to know if you have some unique reason to have a positive view or any facts or observations that are contrary to my own. If so, please feel free to share them here as I'm sure others would be interested as well.

    But otherwise, any issues of my "agenda" don't seem to be the important issue here.

    Thanks for your comment.

    Nov 24, 2012. 10:56 AM | 6 Likes Like |Link to Comment
  • A Very Detailed Look At Organovo [View article]
    actually chaz, in the few months after my article, the TSL steadily fell and ended up down by nearly 50% for the exact reasons I cited.

    of course, subsequent developments did help to propel them higher. good for them.

    if you really feel that way, then perhaps you should buy some onvo today.
    Nov 19, 2013. 11:43 AM | 5 Likes Like |Link to Comment
  • How U.S. Investors Got Punk'd By Kandi [View article]
    But we don't know today if the warrants will ever be exercised or if Kandi will receive any additional money.

    Until that time, these warrants are valued just like any other stock option.

    The value of the 30 month + the 60 day warrants if they were sold today if $7 million, as shown.
    Jul 10, 2013. 11:43 PM | 5 Likes Like |Link to Comment
  • How U.S. Investors Got Punk'd By Kandi [View article]

    The exercise price is $7.24 per share.

    If the stock goes above that level in 30 months, the investor would exercise and then deliver $7.24 per share to Kandi. They are simply buying more new share from Kandi.

    If the stock price does not go above $7.24, the warrant will not be exercised and will expire worthless. Kandi will receive no additional proceeds.

    This option has tremendous value to an investor today. It is just like owning an ordinary stock option on any other company. When the stock is volatile, the option is worth more.

    You can look at your option chain screen from your broker to see what Kandi options are worth. The closest ones are the $7.50 strikes.

    All I did was model out the value of a 30 month option and a 60 day option. This is what Kandi gave away to the investors for free...even though these options are worth $7 million.
    Jul 10, 2013. 11:42 PM | 5 Likes Like |Link to Comment
  • What The Market Missed On Kandi [View article]

    Your "understanding" is clearly not good.

    I have had much more forceful responses from other companies, some of which occurred shortly before they were delisted due to outright fraud.

    You are no longer evaluating facts and circumstances. You are simply trying to use your imagination to shape events to fit your already anchored beliefs.

    The fact that the company chose to raise exactly the amount I said just 2 days after that press release should leave you congratulating me. But I don't expect that.

    I offered to speak with you by phone, but you have no interest.

    You seem to feel like you are far more informed that I. As I said before, if I thought that this stock would go up, I would be buying big. You may wish to consider whether or not you really have an advantage with this stock in terms of your experience, your knowledge and your understanding.

    Do you really believe that a group of retail investors posting news articles on Yahoo boards is the deepest pool of knowledge ?

    Good luck with your investment.

    We will touch base again in a few months and see who was right.

    If I am wrong, I will publicly apologize and you can quote this post. .If you are wrong, then I expect nothing more than a private apology
    Jun 26, 2013. 11:36 PM | 5 Likes Like |Link to Comment
  • Market's Epic Mistake Causes Cleantech To Triple [View article]

    You of all people should have learned your lesson by now, unless you are just shamelessly pumping these small chinese frauds.

    your comments from the past included

    "Next potential bubble: Chinese small caps, largest short interest of any group out there , look at ccme 30 day chart, Dgw is my favorite"

    and "Chinese small caps- big squeeze on here. Ccme, rino, chbt, cski, onp- My favorite dgw because of their cash position ."

    CHBT, CCME, DGW and RINO were all delisted due to fraud despite the claimed "cash balances" etc.

    Your comments come across as being persistently naive or downright suspect.

    The fact that you provide no Bio and don't even follow any authors makes this even more so.
    May 30, 2013. 09:15 AM | 5 Likes Like |Link to Comment
  • Trouble Is Brewing At Farmer Brothers Coffee [View article]
    no, that is my point precisely.

    this stock is often thinly traded and not well covered. many holders are index funds.

    the information is not baked into the price at all.

    if it were, stock would be below $10 again (JMHO).

    Thanks for the compliment on the research by the way. I know you have been bullish for some time, so I appreciate you keeping it civil.


    Jan 7, 2014. 12:37 PM | 4 Likes Like |Link to Comment
  • What The Market Missed On Kandi [View article]
    Hello Kandi readers,

    I have printed out these comments and will be looking through them in the next few days.

    There are obviously quite a few mistaken comments above, so I probably won't respond to all of them.

    I would suggest that people re-read the article and be sure to actually click the links so as to read the filings that I referenced.

    Given the number of comments, I will likely write another full article on Kandi rather than trying to debate point by point with many people who made their minds up before even reading the article.

    You are all certainly entitled to your opinions, and you are certainly entitled to continue buying Kandi stock.

    Eventually the stock will either rise or fall on its own merits. So if you are confidant in your thesis then whatever I uncover and write about should be of no concern to you in the longer run.

    Jun 23, 2013. 10:59 PM | 4 Likes Like |Link to Comment
  • How U.S. Investors Got Punk'd By Kandi [View article]
    The volatility changes from day to day.

    At the time the warrants were given, I used the vol which corresponded to the longest dated options I could see.

    I deliberately included all inputs so that anyone can run their own option model and come up with their own valuation.

    Even if you use the lowest possible vol, you will get a value for the options of millions of dollars that was given to these investors for free.

    Feel free to run your own numbers if you like. The point is that a) the options were very valuable and b) they were given away for free in order to subsidize the purchase of stock at $6.03
    Jul 10, 2013. 11:47 PM | 3 Likes Like |Link to Comment
  • How U.S. Investors Got Punk'd By Kandi [View article]
    actually kandi has been trading in the $4-5 range for several days. you are only seeing the prints that make you happy.
    Jul 10, 2013. 11:35 PM | 3 Likes Like |Link to Comment