|Bid||4.3300 x 2200|
|Ask||4.3800 x 900|
|Day's Range||4.3300 - 4.5100|
|52 Week Range||4.2500 - 9.2300|
|Beta (5Y Monthly)||2.50|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The so-called Tesla of China reportedly is near a new funding deal after warning of inadequate cash for operational needs in 2020.
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Chinese EV maker Kandi Technologies reported Q3 revenue slid 17% but recorded an adjusted profit on a per-share basis.
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also...
Nio (NYSE:NIO) stock has traded sideways over the past month. Shares in the Chinese electric vehicle (EV) maker opened at $3.21 a share on August 2, and closed at $2.86 a share on August 30. Investor sentiment continues to be negative.Source: THINK A / Shutterstock.com Shares continue to trade more than 50% below their IPO price. Tesla (NASDAQ:TSLA) is close to opening its Shanghai facility. With EV sales slowing and economies weakening, NIO stock remains a long-shot. The company could pulloff a turnaround. But additional declines in the share price are also possible. Let's take a closer look, and see why it's smart to avoid Nio stock. Red Flags AboundThere are few catalysts for Nio stock. But there are plenty of red flags. As InvestorPlace contributor Mark Hake wrote last week, July deliveries were down 38% from June. Hake also highlighted the company's continuing cash burn. Nio's current cash position will not be revealed until the next earnings release, leaving investors in the dark about the company's solvency.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRecent news does not paint a rosy picture. The company's co-founder (Jack Cheng) resigned. The company also fired 1,200 employees in an effort to cut costs. The macro situation looks tough as well. As noted above, Tesla will soon start making cars in China. But there is other competition for the Chinese EV market. Scores of startups have entered the game. Intense competition will make it hard to scale up to profitability. * 7 Tech Industry Dividend Stocks for Growth and Income The U.S.-China trade war adds additional risk to Nio stock. Economic fallout from the trade war could further reduce Chinese demand. A soft car market is the last thing a struggling EV startup needs. With these factors in mind, it seems like Nio stock faces multiple risks. But does this mean it's time to throw in the towel? Let's take a look at valuation, and see whether shares trade at a discount (or a premium). NIO Extremely OvervaluedDespite massive declines in the Nio stock price, shares remain overvalued. The company trades at an enterprise value/sales (EV/Sales) ratio of 3.91; Tesla is at EV/Sales of 2.1. Another Chinese-based, U.S.-listed EV maker is Kandi Technologies (NASDAQ:KNDI). KNDI stock currently trades at an EV/Sales ratio of 2.67.But comparing NIO to these peers is apples-to-oranges. Tesla is a better capitalized company, with a strong global brand. While not as well known, Kandi has a more diversified product offering. Along with EVs, Kandi manufactures all-terrain vehicles, as well as auto parts for electric vehicles.Meanwhile, NIO hemorrhages cash. The company's trailing 12-month (TTM) operating losses are $1.6 billion. The company posts negative gross margins. With the sales collapse in July, these negative gross margins may have accelerated further.It's hard to justify the valuation implied by the Nio stock price, even at $2.60 a share. The company's current market capitalization is ~$2.7 billion. But how much can the equity be worth as the company teeters on insolvency? * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off For Nio to survive, it needs additional capital infusions. As I mentioned in my July 5 article, Nio has been bailed out before. State-owned fund E-Town Capital pumped $1.45 billion in a joint venture to help the company expand. E-Town could provide additional capital. But this would dilute current shareholders. Another possibility is bankruptcy. E-Town or another state-owned fund could step in and buy the company's operating assets. This would wipe out the value of Nio's equity. Bottom Line: Nio Stock Remains a Hard PassShares have fallen more than 80% off their all-time high of $13.80 a share. Investors may want to take a bet on a long-shot. But, most likely, there will be additional declines in the Nio stock price. The company has negative gross margins. It hemorrhages cash, and lacks any sort of competitive edge. With high levels of debt and a shrinking cash position, bankruptcy risk remains high.A turnaround is possible. But macro factors are not on the company's side. Without subsides, Chinese EV makers need natural market demand to sell their cars. Add in any complications from the trade war, and selling big ticket items in China seems like a gamble.Continue to avoid Nio stock. There are scores of better high-risk growth opportunities elsewhere.As of this writing, Thomas Niel did not hold a position in any for the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Keeping Saying 'No' To Nio Stock as EV Maker has Few Catalysts to Help appeared first on InvestorPlace.
Xiaoming Hu became the CEO of Kandi Technologies Group, Inc. (NASDAQ:KNDI) in 2007. This report will, first, examine...
China electric car company Nio, known as the "Tesla of China" said its luxury electric SUV sales dived in July due to a battery recall. Shares of Nio fell Monday.
Kandi Technologies posted a loss but revenue jumped on demand for off-road vehicles and parts for electric cars. Kandi stock tumbled.
If you want to know who really controls Kandi Technologies Group, Inc. (NASDAQ:KNDI), then you'll have to look at the...
With the help of huge subsidies and favorable policies, the Chinese government seems to be determined to keep the electric vehicle revolution in the country alive.
President and CEO of Kandi Technologies Group Inc (NASDAQ:KNDI) Xiaoming Hu bought 122,032 shares of KNDI on 05/15/2019 at an average price of $4.75 a share.
Why China’s Kandi Technologies Crashed TodayKandi TechnologiesOn Friday, Chinese electric car parts maker Kandi Technologies (KNDI) stock crashed by nearly 10% after it announced its first-quarter results. In the quarter ended March 2019, the
The Jinhua, China-based company said it had a loss of 9 cents per share. The electric and all-terrain vehicle maker posted revenue of $18.1 million in the period. Kandi Tech shares have risen 40% since ...
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholder...
Kandi Technologies Enters Strategic Partnership with Didi Chuxing, Worlds largest Ride Hailing Program with 31 million drivers and 550 million annual users, to initially place up to 300000 EVs with Didi Drivers in China.