Seeking Alpha

tflo07's  Instablog

tflo07
Send Message
I'm a graduating Senior at the University of Missouri Columbia studying Psychology and Biochemistry and researching obesity and emotion regulation. I've been reading about stocks for the last few months. I love reading about world news and try to use what I know to guess at where the world is... More
  • KNDI and the future 1 comment
    Apr 20, 2011 8:09 PM | about stocks: KNDI
    One of the important things to accept about the stock market is that stocks do not imitate real life success. Stocks match confidence. Investors attempt to predict growth and regression within various markets. Until KNDI begins to post english language articles about its business deals, its stock price will remain volatile.

    While the stock market is running blind, however, there is no reason that you should. KNDI in the space of two years moved from being a company dedicated to gokarts and utility vehicles to one focused on mini-EVs. 

    KNDI facilities will soon have moved to being able to produce 100,000 mini-evs a year. This number, however, is meaningless until you examine their current sales data. Within Jinhua, commercial sales remain in the dozens. It is important to realize, however, that KNDI is not selling out of a group of dealerships but out of a single company-owned facility. Even the introduction of commercial sales within Hangzhou isn't going to improve these numbers immensely. Until a full network of charging and swaping stations has been developed. 

    At this moment, it appears far more likely that KNDI will be reliant on governmental sales until commercial sales jump. With the 1,000 car sale to Italian SHARE and a supposed second purchase from the Hangzhou municipal post office presents a strong start. Post offices from around the country will hold a meeting in Hangzhou soon. This small tidbits of news suggests a strong future for KNDI. The reality, however, is that KNDI's true strength will remain in the hands of its larger partners for quite sometime. SGCC and KNDI's other partners within the battery swap partnership must remain involved in order for KNDI's commercial sales to grow out of the province. The Chinese government has hundreds of thousands of mail/police and other vehicles that may be potentially replaced with EVs. All of these sales can easily go to other firms though. 

    I think KNDI will get a strong percentage of these sales. The companies strongest local competitor Zoyte took its EV taxis off the street of Hangzhou this month after one of them ignited during use. KNDI has the strong potential to do well. More importantly its legacy business appears to be strong enough to maintain it within the current price range around $ 3. While KNDI has the potential to skyrocket with EV sales, the stock price until then will be based on a wild mix of fear, skepticism, excitement and nervousness.
    Stocks: KNDI
Back To tflo07's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Arthur Porcari
    , contributor
    Comments (666) | Send Message
     
    tflo07-Just noticed your blog here. Very Good job. Looks like I may be your first follower. I look forward to your future blogs, and perhaps articles in the near future.
    30 Apr 2011, 11:29 AM Reply Like
Full index of posts »
Latest Followers

Latest Comments


Most Commented
  1. KNDI and the future (1 Comment)
Posts by Themes
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.