IMO a falling channel is only relevant as long as the conditions that created the falling channel do not change. Geopolitical events, a paradigm shift in customer attitudes or technology, or a speculative product can break the channel abruptly. Some Co's profited greatly from the OPEC oil Imbargo in the 70s, others from wars and conflicts. Digital photography caused the demise of film, yet lifted other Co's out of falling channels; spectacular new product lines, such as the Ford Mustang or the start of flat screen TVs did the same. History is replete with these examples. Point is, a rising or falling channel exists only until conditions that caused and perpetuated the channel remain the same. Have a great day.
Yes, it will come. IMO a Microlino deal has been discussed but can not be implemented until Kandi has its own manufacturing license. Only then can the deal be inked, and PR'd. BTW, India has announced the phasing out of all ICE vehicles. What a great market for all of the JV's products now, and the Microlineo in the future.
The PRC initially issued very few licenses to build EVs many years ago. Kandi was still a go kart manufacturer. Later many companies, large, small, and individuals with no experience, facilities, or products then applied for and were granted licenses. Shortly after this initial surge Kandi applied. During the review of Kandi's application the PRC started to realize it had issued far too many licenses and needed to establish criteria that applicants needed to possess in order to get a license. And, the PRC stopped issuing all new licenses. There was a work around to this dilemma, that being to manufacture under the license of a Co that had a license; hence the initial association with Zoyte. Kandi paid a small, very small, royalty to 'use' the manufacturing license. Geely, one of China's larger ICE manufacturers wanted to enter the ICE field. They approached various companies and choose Kandi to set up a Joint Venture. THE JV HAS THE RIGHT TO MANUFACTURE EVs FOREVER UNDER GEELY's LICENSE. Now the PRC is again examining applicants, and is expected to issue new licenses soon. Also, some licenses have been revoked and some existing Co's have had some car models denied subsidies due to the battery cheat up scandal and inability of existing models to meet the upgraded range and speed requirements. I suspect that this has both delayed the licensing process as well as made licenses available for granting. Although Kandi, as a 50% owner of the JV, can profit from the arrangement I suspect it needs its own license both to manufacture EV products other than cars as well as to change the US Market's perception from that of a parts supplier to an EV manufacturer.
There is no exact date for the JV IPO. I expect an IPO of ZZY to precede any IPO by yhe JV. My expectation is ZZY this year and JV next year. But, I have NOTHING definitive to support my theory.
Microlino information: Kandi was working under contract to both engineer and produce the prototype. The initial 500 is expected to be assembled, manufactured if you want to call it that, in Italy. Possible China introduction in the future. (Anything is possible.) As of today, Kandi does NOT have a license to manufacture automobiles. Is it possible that the Microlino will be classified as a motorcycle powered by battery? The Microlino could be produced by the JV, but I doubt that it will be. Kandi owns a factory in Jinhua, we must remember that. Also, Kandi is a high volume producer; due to the probable low price point of the Microliner it makes no sense for Kandi to manufacture for a limited offering even if it could.
So much depends on Kandi receiving its own manufacturing license. It will be issued, the only question is how quickly.
This question was answered in this, the Public Board. Also, I'm nobody's research assistant. Look for it. Besides, you should know the answer to this question already.
This question has been addressed previously.
Sentiment: Strong Buy
Kandi produced prototype and did all engineering. Very nice vehicle, will develop a niche market in Europe. Initial production run in Italy, perhaps stigma against Chinese manufacturers, insufficient expected demand to justify involvement of a high volume producer such as Kandi, or tax reasons. China has now introduced plans to regulate Low Speed Electric Vehicles, LSEV, classifying and regulating them the same as motorcycles. I have seen 2 separate specifications for the Microliner, one meets subsidy requirements and one does not meet. If meet subsidy requirements than it is not a LSEV. If it does not then I suspect will have LSEV classification. I would have to say China production is a question mark at this time. Perhaps will be addressed on CC this Monday. I try to post facts, not BS. GLTA, have a great weekend.
I rarely post and only read this Board occasionally. It has degenerated to a forum of profanity and name calling , often with sexual meanings. In the past I tried to elevate to discussion of facts. I have since given up
There are 742,024 warrants due to expire on 6/3/16. There are also 206,395 placement agent warrants due to expire 8/4/16. The foregoing are from the 5th round warrants. It is unknown if there was contract language that permitted early exercise, but they are priced at $9.72.
There are also options, 4,900,000. These options are in place to reward key personnel should certain targets be reached. Per accounting rules they must be accounted for over a 3 year period; this does NOT mean that any or all must be awarded during the same 3 year period. Also, if individual and / or corporate targets are not achieved then it is possible none are awarded during any specific time frame. In this case, the pool remains at the same level.
It is not at all unusual for a Co to use this method of compensation, incentive rather raise salaries. Furthermore, this pool of options is valid until 5/29/25.
Above information from 3rd Qtr 2015 10Q, Financial Information section, pages 42 to 44 inclusive.
Have a good day.