Those really stinky articles that have come out recently have me wondering why such a big effort was put into attacking BYD's credibility and reputation. It's only been a few days since Buffett spoke with enthusiasm and optimism about BYD's future, and then these articles try to muddy the water and attempt to attack BYD from every angle possible. There's a lot of possible motives , but when the pokes and jabs go so far , it starts to look like a premeditated mugging. Picture--- "Gentlemen, no one leaves this room until we've found 20 ways bludgeon and assassinate the character of this company".
Did some players still need to cover their short?
Did some deep pockets get caught off guard by the recent rally?
Is there a breakthrough in battery tech at BYD that's about to be announced? (I only say this because I've seen some pretty good bashing campaigns just before major announcements)
Is there an upside surprise from one of BYD's non-auto business operations that will give this rally some vigorous legs?
Are the fears that BYD advance battery tech and advantages on cost to manufacture will soon bite the competition in the hind...... was that the motivation for these attacks?
Earnings date is almost here and it just looks to me like the stock jockeys are mercilessly whipping the horse before the gate opens.
Let's hope that they don't doctor the books and make their earnings look better than they actually are. I would not put it past them.
I cannot understand why they didn't use robots in their plants to build their autos. I question everything about this company.
About all the rumors flying around about BYD copying everything, why do you really care? There are only two things that would make me worry. One is Buffett selling out, which means that he no longer feels that the future prospects are attractive. And two, the earnings doesn't stop going down in a few years and profitability disappears.
In life, it is usually not the original inventors who are good at making money. However, people who are good at copying are sometimes very good at making money - sad but true. One example would be Apple for example. Apple stole all the graphical operating system ideas from Xerox and released MacOS. Microsoft in turn stole all the MacOS ideas and created Windows and took control of the world.
So who cares? Do you think all the eReaders that are so popular were invented by Amazon? Phillips invented that epaper technology and is the one least profiting from the pad and ereaders mania.
There is a movie that I like that shows how the world works. It is called Contact. The movie shows that the Americans take the risks and come up with the best ideas (they build the time machine). Then, when the American experiment goes bad and explodes, Jodie Foster finds out that the Japanese had been secretly working on a copy project. The thing with the Japanese is that they copy everything that the Americans do, but they do it BETTER. This is how it is always been, and that is why Ford does not make the best cars.
You did not entertain the possibility that the articles were truthful and accurate?
The reason I held on, even after it became obvious that their electric cars were way more expensive than I expected and would hit our shores late or never, was that they have such a large, well staffed R&D dept. Surely, thought I, SOMETHING great will come from all that genius!!!
Sadly, it may be that 99% of all those talented young men and women are being wasted in efforts to copy, and not in the search for innovative new solutions. Someone else will make the big breakthrough.
BYD isn't doing anything that almost all businesses do. To emulate another companies design or features is common practice across the whole spectrum of the business world. When Ford first put intermittent windshield wipers on vehicles back in 1969, it wasn't long before every car company was adding that feature, and look at all the automobile lookalikes that are out there on the roads. If it looks good, works good and sells good, there's going to be idea snatchers that will try to profit from it and sometimes even improve on the original idea. Car companies do it. Pharmaceutical companies do it. Clothing companies do it. Electronic companies, shoe companies etc, etc. Each have their own slight variation, and then call it their own. The common practice makes the real innovators angry and it shaves profits from the real inventors bottom line........ but it's business.
I'm not sure exactly how BYD has the strength of their elite "thinking" workforce deployed, but I would bet that it's not being used to copy the designs of other companies. The Chinese and BYD specifically have the lead, they also have big natural resource advantages, labor advantages, and even government cooperation advantages for the most part when it comes to battery technology. To me it seems that BYD is best positioned to make electric transportation affordable to the masses, and soon other companies will be trying to copy BYD's business model and ideas to improve their own livelihood.
In the short-term anything can happen so it is a pure gamble. In the long-term, I think this will be a winner if you can stand the hair-raising volatility, the news manipulation, the lies, and the deceit.
I finally decided to catch this falling knife and buy BYDDF last week. The thing that finally gave me the confidence is not the fundamentals, but the technicals. There was an extremely high volume spike on the weekly chart in addition to the 50% retracement from the high and the downtrend break.
Good luck to all longs
It really shouldn't bother me when I read crap like the recent articles because I won't be selling any shares for several years, but for many reasons I really like this company so I don't like to see it get trampled. I like it's plan, it's vision, and it's history. I haven't even minded the big dip in the price because it offers a great opportunity. I also added more shares recently and feel pretty good about the long term prospects for BYD, it's profitability and my own. Great to hear that you also thought BYD had reached an attractive price.
Best wishes Graham!