"Investors should strongly consider reviewing all possible findings with a critical eye to...


"Investors should strongly consider reviewing all possible findings with a critical eye to determine the validity of the hyper-bull thesis," SA contributor Richard Pearson says, regarding shares of Kandi Technologies (KNDI -8%) which are off sharply on the session. Pearson believes that having paid off $25M in debt last month,  the company has "no near-term incentive to hype the story or promote the stock." (See also: SA contributor Sharesleuth wonders about KNDI social media campaign)

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Comments (23)
  • Cassina Tarsia
    , contributor
    Comments (662) | Send Message
     
    I wonder how many shorts this guy has ...?
    11 Jul 2013, 03:41 PM Reply Like
  • Mukticat
    , contributor
    Comments (2063) | Send Message
     
    Not enough in my book! Pearson knows his stuff and I eagerly await his next articles.
    11 Jul 2013, 06:58 PM Reply Like
  • Mukticat
    , contributor
    Comments (2063) | Send Message
     
    You would think that by now it's patently obvious that KNDI was nothing more than a pump and dump designed to enrich the promoters and help the company raise enough capital to cover their shortterm debts. But the angry denial comments on yours and Sharesleuth's SA articles - both of which clearly show the nature of the promotional operation via twitter and other social media - to sell the KNDI story as a TSLA 'me-too' - show how difficult it is for investors to admit and come to grips with having been had (or 'punk'd')

     

    It would be as if some of the passengers on the Titanic (the crew in both cases had long fled) were on deck trying to convince the other passengers that the iceberg didn't exist, that this is all a minor contre-temps, and as soon as it's over we'll gather up speed again and head on to NYC.
    11 Jul 2013, 03:45 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13056) | Send Message
     
    Muk

     

    Both RP and Arthur have good positions. Arthur's argument about the CEO being a really god businessman and having millions of his own money tied up in KNDI and RP reports about pumping and incomplete truths about KNDI are both correct.
    12 Jul 2013, 02:21 PM Reply Like
  • larocag
    , contributor
    Comments (1469) | Send Message
     
    "Pearson believes that having paid off $25M in debt last month, the company has "no near-term incentive to hype the story or promote the stock.""

     

    does that even make sense? You pay off a loan and now you can quit trying.
    11 Jul 2013, 03:49 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13056) | Send Message
     
    If it paid off or serviced?
    12 Jul 2013, 02:22 PM Reply Like
  • larocag
    , contributor
    Comments (1469) | Send Message
     
    My epistemology isn't that good.
    12 Jul 2013, 02:28 PM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (662) | Send Message
     
    Tesla did the same thing ... go up and down every time a negative article came out (although now it's not happening there so much). With two negative articles coming out almost at the same time, is it any wonder that Kandi is having a hard time. What is the truth, many people are saying, as they jump ship. I guess that you'll just have to wait and see.
    11 Jul 2013, 03:50 PM Reply Like
  • RockyMtnHiiigh
    , contributor
    Comments (201) | Send Message
     
    Mr Pearson - Technically you are correct...The company did "pay off" a $25 Million Debt last month.

     

    But you are ONLY correct on the terminology.

     

    Because ASA YOU WELL KNOW - it is common practice in China for companies to roll there Loans/Debt forward to a new loan, usually on a yearly basis.

     

    This is exactly what Kandi did - they rolled over the $25 Million in debt to an almost identical one year loan. It was really a non-event for the company, because they have an excellent credit rating and are on very good terms with their banks, and they have rolled over their loans for years.

     

    So, shame on you for trying to scare investors by misstating what truly happened.
    Truly shameful! - what other half truths and mis-information do we have to look forward to from you in the future?
    11 Jul 2013, 03:54 PM Reply Like
  • RockyMtnHiiigh
    , contributor
    Comments (201) | Send Message
     
    And here is the Company Press Release (in response to Pearson's June 21st article) - clearly explaining the ins and outs of the refinancing....

     

    btw, Pearson's article was so far from the truth that SA slapped an Editor's Note at the top of that story (which was the only one of it's kind (per a search of SA's articles) on SA in the last ten months), that read: (Editors' Note: The accuracy of some portions of this article have been disputed.)

     

    You would think he'd thoroughly read a Press Releases directed directly at his article on SA. Here's the Kandi PR....

     

    http://bit.ly/1avsHfX

     

    "1. Kandi's $25 Million Debt/Note Payable.
    As we have described clearly in our Form 10-Q for the quarterly period ended March 31, 2013 (the "10-Q"), by issuing bank notes payable rather than paying cash to suppliers, the Company can defer the payments until the date the bank notes payable are due. Simultaneously, the Company deposits restricted cash in banks to back the bank notes payable, and the restricted cash deposited in banks generates interest income. On December 24th and 25th, 2012, the Hangzhou Branch of Ping An Bank issued 140 million RMB (approximately $22 million) notes payable to the Company due on June 24th and 25th, 2013, as disclosed in our 10-Q. The Company deposited restricted cash to Ping An Bank when the notes were issued. As of Mach 31, 2013, restricted cash of $7,959,755 was held as collateral for the notes payable. The Company re-paid these $22 million notes in full on June 6th, 2013 and June 19th, 2013, and the Hangzhou Branch of Ping An Bank has also re-financed this amount with new short term notes payable to the Company due on December 19th, 2013. As we have indicated in our 10-Qs and 10-Ks, this is a common practice for the Company in conducting its normal business; using rolling notes payable from the banks, which the Company's good credit makes possible, allows us to optimize the use of our cash flow.
    The remaining $3 million short term bank loan referenced in the article is a loan from Shanghai Pudong Development Bank issued on June 27, 2012 and becomes due on June 27, 2013. The Company has already arranged the repayment of the loan which will occur before June 25, 2013 and has negotiated its renewal by way of a new loan in the same amount from Shanghai Pudong Development Bank. "
    11 Jul 2013, 05:23 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13056) | Send Message
     
    Rocky,

     

    But doesn't that mean they have new debt to service? How much of that will be cutting into revenues?
    12 Jul 2013, 02:23 PM Reply Like
  • RockyMtnHiiigh
    , contributor
    Comments (201) | Send Message
     
    dwdallum,

     

    I state above (and backed up with a Kandi Press Release) that in essence the company rolled over the $25 in debt, With no material change in banking terms. This is a typical practice in China, and specifically for Kandi - as they have simply rolled over their debt in years past too.

     

    So, to answer your question - this is not new debt at all.
    12 Jul 2013, 02:55 PM Reply Like
  • Mark T. Phillips
    , contributor
    Comments (582) | Send Message
     
    I think investors should strongly consider reviewing an author's prior articles and results... One quick scan over Pearson's articles over the past year and one can see some pretty big gains (which would have resulted in massive losses had one taken Pearson's advice and gone short on the stock), not to mention an incredible amount of fact-based rebuttals by seeking alpha users who have proven Pearson to be outright wrong.

     

    Sharesleuth has posted some decent articles in the past, but this last one on KNDI is pure hearsay and is lacking in a multitude of areas.
    11 Jul 2013, 04:40 PM Reply Like
  • Mukticat
    , contributor
    Comments (2063) | Send Message
     
    Pearson's past articles have dissected CLNT, shown it to be an out-and-out fraud, and have made me a ton of money because I freely short a stock that purports to have a 2 PE it each time it spikes. I would never dare do this otherwise on the off-chance they're really as profitable as they claim to be. His articles on KNDI have been spot-on too. He said it's a pump and dump, I jumped in with both feet on the short, and guess what? It turned out to be a total pump and dump. And now CBAK's pump is primed and it's time for the dump.

     

    Pearson's a money-maker. Porcari otoh got you to buy the stock in the 6's, 7's and 8's. How's that working out?
    11 Jul 2013, 06:57 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13056) | Send Message
     
    In RP's article before this last one, he stated that once the stock is high enough, then 7--8 dollar area, there was a financing coming and dilution of stocks. After the financing deal was over, he predicted the stock would tank.

     

    KNDI came out and said they didn't need money and that was not the case. The day after they did the stock dilution financing deal, and the stock has tanked.

     

    I'd say that was pretty good predicting on RP part.
    12 Jul 2013, 02:26 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13056) | Send Message
     
    "Porcari otoh got you to buy the stock in the 6's, 7's and 8's. How's that working out? "

     

    LMAO.
    12 Jul 2013, 02:29 PM Reply Like
  • RockyMtnHiiigh
    , contributor
    Comments (201) | Send Message
     
    dwdallum,
    We all do our own DD, and take ownership of our decisions.

     

    From all that I've seen Art was just giving us his best guess/opinion at the moment. He is not part of Kandi's management team, he's just a very knowledgeable investor in KNDI.

     

    I think your twisting the truth a bit - Kandi's press release did NOT say they would not do a additional stock offering. It only stated that if they did do another offering - that Kandi would formally issue an SEC filing stating so within two days. Which they did do.

     

    This point has been discussed and proven numerous times in the comments section of this an a prior Kandi SA article (on which you have posted numerous comments). So, I think we would all appreciate it if you'd stop wasting our time by making false claims.
    12 Jul 2013, 03:09 PM Reply Like
  • Mark T. Phillips
    , contributor
    Comments (582) | Send Message
     
    Mukticat--It's funny you say that, because Pearson has also made me a substantial amount of money--but not from shorting companies he recommends, but going long on them.

     

    Here's a few companies he recommended to short that I went long on:

     

    ALNY - he wrote an article on Feb 25th, now +117% from where he recommended going short
    TSL - he wrote an article on Jan 7th, now +40% from where he recommended going short
    TEAR - he wrote an article on April 24th, now +52% from where he recommended going short

     

    Looking at the last 20 short recommendations he made, nearly the average return has been ~ +8.4%...

     

    Regarding Kndi--my cost basis is in the $3.9 range, as I started researching Kandi earlier this year and after weeks of DD was convinced to buy shares. I sold half my shares in the spike up to $8 around 7.7/share and will likely buy more now that the price has dropped so far.

     

    So yes, it has worked out quite well for me, thank you for asking.
    12 Jul 2013, 03:54 PM Reply Like
  • RockyMtnHiiigh
    , contributor
    Comments (201) | Send Message
     
    Hey dwdallum,

     

    My bad - I had you mistaken for another poster, you've actually been pretty fair balanced in your comments. I apologize for my harsh words.

     

    Rocky
    12 Jul 2013, 10:36 PM Reply Like
  • toonies
    , contributor
    Comments (444) | Send Message
     
    When I started to buy TSLA shares in October 2012 at $28, SA was full of articles against TSLA. Other media too. Articles had something common: misleading info, bias, half true, use only of arguments which supported their conclusions, arguments not suitable to support conclusions were omitted. And there were a lot of personal attacks against TSLA CEO in these articles too.
    Short driven articles about KNDI are not so strong negative as were about TSLA, but are a lot similar in creative work with facts.

     

    I am staying long and going to do my own DD. Brrr.
    11 Jul 2013, 04:41 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13056) | Send Message
     
    Toon

     

    Should have done your DD before you even started investing. It's much safer that was anyhow?
    12 Jul 2013, 02:30 PM Reply Like
  • Mark T. Phillips
    , contributor
    Comments (582) | Send Message
     
    It's funny how people are so quick to chastise Kandi's CEO when Musk also diluted shares shortly after a massive share price increase when he stated on the last earnings call that he had NO intention to raise capital.

     

    I think Kandi's management was wise to take advantage of the SP increase on such a non-event to raise capital.
    12 Jul 2013, 03:58 PM Reply Like
  • Markidesad
    , contributor
    Comments (85) | Send Message
     
    Glad to read that I'm not the only one thinking that "High Frequency Trading" and "Naked Shorting" are killing the market.
    http://bit.ly/14NaVzf
    Still long in KNDI but believing things could go fast now.
    Grtz from Antwerp ( Be )
    12 Jul 2013, 06:14 AM Reply Like
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