Seeking Alpha

Kandi -2.1% AH; company files $300M mixed shelf

  • Kandi Technologies (KNDI) has filed to sell up to $300M worth of stock, debt, and other securities through future offerings.
  • The Chinese EV maker had $20.5M in cash as of March 31. Debt included $33.7M in short-term bank loans, $14.6M in notes payable, and $13M in bonds payable.
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Comments (32)
  • ayojayjo
    , contributor
    Comments (33) | Send Message
     
    So is this a good thing? Bad thing? Undetermined for now? Does selling up to $300M worth of stock mean they are increasing the number of shares available? This will dilute the existing shares, no? Anyone care to explain or lead me in the right direction?
    20 Jun 2014, 04:47 PM Reply Like
  • Mosbear64
    , contributor
    Comments (197) | Send Message
     
    http://bit.ly/1npjKFG

     

    I think it is a good thing... unfortunately, many people will think they diluted the stock by 40% and weak hands will sell, but if they did their homework, they would see that it is a good move.

     

    I just wish the IR dept would think about doing an FAQ along with the S3 so that people don't freak. I honestly & selfishly hope the stock slams back to 11 so I can buy another big block and lower my cost of entry!
    20 Jun 2014, 05:47 PM Reply Like
  • Gerald Klein
    , contributor
    Comments (219) | Send Message
     
    A very bullish move indeed.
    20 Jun 2014, 04:47 PM Reply Like
  • Hdog
    , contributor
    Comments (6) | Send Message
     
    Smart move.... huge expansion coming with subsidies from Chinese government.
    20 Jun 2014, 05:07 PM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    Gerald how is this bullish? you have an idea what they could use this money for? long kndi.
    20 Jun 2014, 05:11 PM Reply Like
  • Mosbear64
    , contributor
    Comments (197) | Send Message
     
    They have not raised any money or offered a secondary - this 415 shelf gives them up to 3 years to raise money without having to file multiple prospectuses and pay fees to investment bankers etc.. This move tells me that they are gearing up for something bigger than we know. Here is some info.
    http://bit.ly/1npjKFG
    20 Jun 2014, 05:44 PM Reply Like
  • Gerald Klein
    , contributor
    Comments (219) | Send Message
     
    First., this puts to rest any questions about the SEC investigation. No company would undertake a shelf registration of this magnitude under the shadow of a dibillitating SEC investigation.

     

    Second, an emerging growth company like Kandi does not file a $300 million shelf registration unless there are material upside events on the near term or immediate horizon. The shelf registration represents over 50% of Kandi's market value. Management is obviously confident Kandi is worth two, three, four, five times (pick a number) its value today.

     

    Third, a shelf registration of this magnitude will attract the likes of Morgan Stanley, UBS, and other investment banking firms of that stature. This could and should usher Kandi into the major league so to speak.

     

    Fourth, but not finally, understanding the market potential Kandi addresses with their product and service offerings it should be understood the company will need growth capital. Right now, this tells me the long-delayed EV subsidies are going to begin sooner versus later, perhaps next week.

     

    In my opinion, Kandi management has expertly and deftly managed very challenging market and external forces. The one undeniable, unanlienable fact of human behavior is behavior predicts behavior. Based on how company management has guided the development of Kandi in the past, I anticipate company announcements that will demonstrate the shelf registrations is a shrewd and prudent move. A move that proves good to shareholders - present and future.
    20 Jun 2014, 08:45 PM Reply Like
  • Stevo56
    , contributor
    Comments (70) | Send Message
     
    Gerald, I read on the Yahoo KNDI group site that among the many open job listings for KNDI (many job listings is another very healthy growth sign, BTW), there is one for a PR type position. Many Kandi believers would love you, or Michael, or Harris, or Art (or others) to get involved with this for KNDI for a year or so. This area, that if addressed more aggressively by KNDI, could help against the shorting games that are going on. Maybe they could set up a PR position that doesn't require that many trips to China.
    20 Jun 2014, 09:19 PM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    thanks gerald
    21 Jun 2014, 07:51 AM Reply Like
  • FastmoneyLW
    , contributor
    Comments (37) | Send Message
     
    Thanks Gerald for sharing your thoughts!
    21 Jun 2014, 08:41 AM Reply Like
  • PlanetThoughts
    , contributor
    Comments (44) | Send Message
     
    I was invested in KNDI for a while, but they are now a risky business. They are being investigated. They have aggressive expansion plans and a lot of debt. They had announced they would have 50 vertical automated garages by now, but have only a few (3?). So, they are risky. They could do well as a company, but to me this is a real gamble.
    20 Jun 2014, 05:23 PM Reply Like
  • KNDI4GREEN
    , contributor
    Comments (25) | Send Message
     
    Can you state your risk points?You seem to know a little solar but I would like to hear what do you know about KNDI?
    20 Jun 2014, 05:40 PM Reply Like
  • KNDI4GREEN
    , contributor
    Comments (25) | Send Message
     
    Just out of common sense, why would the company apply for 5 year long-term S3 form at SEC ,if they have a big problem with investigation?Explanat...
    20 Jun 2014, 06:07 PM Reply Like
  • geleng
    , contributor
    Comments (35) | Send Message
     
    Precisely!!!!

     

    These S3 filing means two fold to me.

     

    1. It is another confirmation (the first one is the SEC blessing to put in effect the last year S3) that SEC investigation related to KNDI is not a material event that jeoperdizing KNDI

     

    2. W know that a fast growth co needs funding. KNDI is certainly so. Based on previous history, this will be followed by material event that will propel the company business, and the PPS consequentially.
    20 Jun 2014, 06:17 PM Reply Like
  • Gerald Klein
    , contributor
    Comments (219) | Send Message
     
    PlanetThoughts. The recent S-3 SEC effectiveness and the filing of this shelf registration puts to rest any concerns about the SEC investigation. I certainly hope they have aggressive expansion plans. The market potential is huge. A lot of debt - huh? America has a LOT of dept. Kandi has very little debt. I understand there are twenty-three vertical garages and seven "flat" locations in operation in Hangzhou. My study of the Chinese press reveals the delays in meeting forecasts relate to external forces beyond the Company's immediate control. A forecast is just that, a forecast. Where's the gamble? Every macro issue regarding EV adoption in China's cities supports this investment thesis. In fact, despite the long delay of the EV subsidies, the macro issues regarding EV adoption strengthen daily.
    20 Jun 2014, 08:55 PM Reply Like
  • ayojayjo
    , contributor
    Comments (33) | Send Message
     
    if the investigation is still pending, this could help KNDI save face before the dynamite goes boom. In fact, if the dynamite is about to go boom, they could quickly raise up to $300M to plan their great escape, no?

     

    Just playing devil's advocate.
    23 Jun 2014, 11:48 AM Reply Like
  • Mosbear64
    , contributor
    Comments (197) | Send Message
     
    Kandi is not being investigated as a target. The investigation centers around U.S. and Canadian businessmen who, to the best of my knowledge, used reverse mergers to take many Chinese companies public. Most failed, but Kandi has not and will not fail. These men worked without licenses and did not file with the SEC while owning more than 5% of various companies.
    They do not have a lot of debt. On March 31st, thee long and short term debt amounted to $82 million. If you look at debt to cap ratio - that is low.
    Yes they are behind on the vertical garages because they felt they needed to get the cars closer to the people so they are reinventing this a bit and putting the cars near bike shares.
    Lastly, for anyone panicking about today's S3... here is some reading!
    http://bit.ly/1npjKFG
    20 Jun 2014, 05:42 PM Reply Like
  • ayojayjo
    , contributor
    Comments (33) | Send Message
     
    However, the investigation is not complete and should not be considered complete until KNDI officially announces that it is. After speaking with investor relations, I've learned that KNDI cannot say they are done. When they do, then we can consider them so. Simple as that. Until then, allow shorts to bulk up - I look forward to the squeeze.
    24 Jun 2014, 09:30 AM Reply Like
  • Mosbear64
    , contributor
    Comments (197) | Send Message
     
    they will never announce a complete investigation - nor will the sec.
    24 Jun 2014, 12:57 PM Reply Like
  • Gerald Klein
    , contributor
    Comments (219) | Send Message
     
    The recent S-3 SEC effectiveness and the filing of this shelf registration puts to rest any concerns about the SEC investigation.
    24 Jun 2014, 05:23 PM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    thanks mosbear64
    20 Jun 2014, 05:51 PM Reply Like
  • Mosbear64
    , contributor
    Comments (197) | Send Message
     
    Don't mention it. Anytime I can be of help... be prepared for some volatility on Monday because many people don't understand the dynamics.
    20 Jun 2014, 06:40 PM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    hey what happened to all the comments????? they got wiped out!
    20 Jun 2014, 06:45 PM Reply Like
  • JosephCortes
    , contributor
    Comments (492) | Send Message
     
    I would love to buy at lease 1,000 more but I'm out of cash,
    So... I'll just have to hang on to my part of the pie.
    Once this baby gets moving..... ohhhh this will be so sweet!
    20 Jun 2014, 08:32 PM Reply Like
  • Mosbear64
    , contributor
    Comments (197) | Send Message
     
    I analyzed Kandi's similar S3 from last year... it caused about a 6% drop in the stock price but that did not last long. About 45 days later - the stock price almost doubled. This is pure speculation - but I would not panic much about the stock tanking. We may see low 12's. I would be very surprised to see any price below 11.80 again. So for those of us long term - again, I would not panic.
    21 Jun 2014, 12:19 PM Reply Like
  • mtpennybags
    , contributor
    Comments (36) | Send Message
     
    How bullish haha. Looks like those shares I sold are poised to be worth quite a bit less! Pump and Dump folks they are clearly taking advantage of an inflated stock price to milk as much dough out of investors as possible.
    22 Jun 2014, 05:26 PM Reply Like
  • Gerald Klein
    , contributor
    Comments (219) | Send Message
     
    You sound like a paid basher mtpennybags beating the same old, same old, same old drum. What is your point? You obviously know little about business. You know nothing about "pump and dump." A company does not file a registration statement to conduct a pump and dump scheme. At least learn the proper usage of the nomenclature or please follow Abe Lincoln's advice...
    23 Jun 2014, 08:35 AM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    mtpennybags this is not a pump and dump this is a real company producing value. you think someone like geely/Volvo would go into a partnership with crooks? I have read a lot on the company and the government subsidy taking place only make it sweeter. I have good confidence in the company that they will become very profitable in the future. long kndi
    22 Jun 2014, 08:26 PM Reply Like
  • Illuminati Investments
    , contributor
    Comments (4094) | Send Message
     
    Perhaps, because if KNDI blows up, Geely will probably end up with a valuable joint venture that was funded by KNDI shareholders, who will be left holding the bag.
    23 Jun 2014, 02:28 PM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    stay positive no one is getting left with the bag. look at the earning and you see that something positive is going on.
    24 Jun 2014, 06:55 AM Reply Like
  • JosephCortes
    , contributor
    Comments (492) | Send Message
     
    By the end of this year.... $45.00
    24 Jun 2014, 03:41 PM Reply Like
  • t0nutz
    , contributor
    Comments (307) | Send Message
     
    from your mouth to gods ears :)
    24 Jun 2014, 08:42 PM Reply Like
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