Tuesday, June 10, 2014

Seeking Alpha: Can Micro-Transport Be A Major Driver For Kandi Technologies?

There's a lot of weirdness around Kandi Technologies (KNDI). These shares have risen more than 50% in the past year and about 340% over the past two years on the sizzle of the company's opportunity and potential in all-electric vehicles (or EVs) within China, even though it has never been particularly successful at selling electric ATVs, go-karts, or other products, let alone passenger autos. Like many Chinese companies, it employs a Byzantine holding company structure, employs a largely unknown auditor, and used a reverse merger to list its shares in the U.S..

On the other hand, this company boasts a joint venture with Geely (OTCPK:GELYY), one of the largest domestic auto manufacturers in China. Together, these companies are addressing a "micro-transport" market in China that could support hundreds of thousands of vehicles without needing to compete directly with the likes of Tesla (TSLA), BYD (OTCPK:BYDDY), BMW (OTCPK:BAMXY), and a host of joint ventures between Chinese domestics and larger global car companies. While working Geely doesn't guarantee the quality of Kandi, it does offer some assurance that there are real products and a real market here. While I think the fair value is far beyond murky and very difficult to quantify at this point, as "opportunity stocks" go, Kandi at least has a good story to tell.

Continue here:
Can Micro-Transport Be A Major Driver For Kandi Technologies?

No comments: