Kandi Technologies Group Inc (NASDAQ:KNDI) Dilution Puts Value at $15
KNDI just raised $11m dollars for working capital, the tiny raise included a bonus issue of 18 month warrants, the $11m does not include the fees on doing the raise.
Netting out industry averages and valuing the warrants at only 50c it would mean the company valued the stock at around $15.
In these cases of a working capital raise, the stock generally trades towards the valuation, in this case, $15.
The Technicals Reflect a $15 Target
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with KANDI TECH GRP). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
Bollinger Bands are 68.85% wider than normal. The large width of the bands suggest high volatility as compared to KANDI TECH GRP’s normal range. Therefore, the probability of volatility decreasing and prices falling to establish a trading range has increased for the near-term. The bands have been in this wide range for 21 period(s). The probability of prices consolidating into a less volatile trading range and lower level increases the longer the bands remain in this wide range.
Very Disapointed in kndi and chinese gov for not getting these subs going yet, I guess they need the cash but this has been all prearanged to rape us until about 10:00 o clock and then buy on the cheap don t panic the story still to good to sell at theses levels