1. Kandi has gone from being labeled "a scam" to a company that has longs and shorts speculating over it's potential. Following a Goldman Sachs report to its members concerning Geely (and indirectly Kandi through it's EV partnership with Kandi) on Dec 6th, volume and PPS has seen significant rise. The implication is one that when Goldman Sachs visited Kandi HQ (yes, it exists) they heard or saw something first hand that had them issue a positive report.
2. The first two towers are up and running. Consumers are renting and, from Chinese media interviews, the experience is very positive. Only negative is that consumers would like it if there were more locations in Hangzhou—a good problem and one that will be solved. The point: This is not a concept. Implementation has started and is being well received.
3. 50 towers by end of Q1? Perhaps not. More likely less than half of that. The first turns of a wheel are the hardest but the wheel is turning. Most people over estimate what they can do in one year and under estimate what they can do in ten. The same is true for companies run by people. Securing sites (i.e. permitting) and poor weather have resulted some delay but fabrication of towers happens offsite and is said to be happening. The point: Delivery on timetables may be less than expectation or exceed expectation but garages have and will continue t roll out. You can be sure of that
4. Some feel Kandi doesn't have the cash to build these towers. The fact: Kandi doesn't pay for the build. An investment partner is funding this venture—Kandi profits from sale of parts to the JV...who "assembles cars" and sells them to garage tower company. Kandi operates the towers for a healthy share of the net profit. At all three points (parts, sale and rental) Kandi generates revenue. The point: Cash is coming in from all sides
5. Kandi's partners/connections cannot be overlooked. Geely, State Grid, Government...despite incredible technology and patents–it's who they know, too.
Cramer is for me the personification of an agenda-loaded agitator who is serving his OWN agenda and his OWN agenda OLNY. On the other hand I kind of like the fact that now I have another opportunity to add more KNDI stocks at a lower price to my portfolio. For those who are scared: Don't worry! Look at all the real facts and not the facts somebody tells you. Do your own DD. This is my opinion based on my own DD. This is an opportunity comparable to BIDU or comparable to the time APPL introduced its Apple I. China is choking and needs this business model which is proven by the approval and subsidies of the Chinese Government. Again, do your own DD. If you don't, you will fall for these agitators and WILL miss out.
Sentiment: Strong Buy
Okay, Cramer back to labeling Kandi a scam along with all China stocks without analyst coverage. While we take two steps forward he is entitled to take one step back. He'll catch up soon or maybe, like BAIDU, he never will.
An excellent post dominique.leclezio. I am long and have been buying KNDI when it was $7 a share.
KNDI does not receive "... healthy share of the net profit." My understanding is that Geely & KNDI get a small potion of the profits (very minor point).
I believe on Monday, Feb 24, the stock will be around $14 and mid-March, when KNDI releases financials, it should be over $15 hopefully headed towards $18 before July 1!
If you are not on the private board, please join. Your comments would be greatly appreciated & I for one will follow your comments in the future.
Hope you are having/had a good weekend,
Sentiment: Strong Buy
Don't really know. The Goldman Sacks report leaned positive—partially because of the JV with Kandi and EV growth in China. Domestically, they seems to have a good hold. Export markets/potential is decent. Not sure how Volvo/London Taxi cab acquisitions will play out in the mid-long-term. They make a good product at value price points, have great distribution and marketing savvy—a great partner for Kandi. Who knows, they may be the Hyundai/KIA equivalent for China where their brand and product advance faster internationally than others like BYD, Cherry, etc. Again, not sure and not enough DD to even have an opinion.