Kandi Technologies Group, Inc. (NASDAQ:KNDI)

CAPS Rating: 2 out of 5


Player Avatar therestofthestor (< 20) Submitted: 1/12/2010 10:18:37 PM : Outperform Start Price: $6.10 KNDI Score: +6.63

I can remember another company that sold motorcycles, ATV's and the like and when they came out with automobiles the industry gigled as to how silly. Now that same company is on top of the automotive world.

The big advantage Kindi Technologies has is many fold:
1) They are know by their domestic market customers (farmers) for low-cost vehicles that are useful in the rough terain in China and low cost.
2) China is the largest market in the world.
3) They don't have to ship-out their product in order to be profitable unlike their counterpart given their domestic market is huge.
4) They are keeping within their knowledge and expertise not experimenting unlike what other companies have done (and failed, e.g. E*Trade --> Banking/Mortage).
5) Consertative company with their eye focused on their customers.
6) Goverment and multi-industry support that is an intanagable that cannot be ignored in your calculations.

As an investor this company managed to pull-out a small profit last quarter and engage with goverment and industry support. They are on the cutting edge of technology that has always been hard to put a price on. Low book value and free cash flow make sense when that is all you have going for you to grow the company. You can also throw-out the the P/E ratio. This is from last quarter after riding out a recession in China and the world. This really has absolutly no meaning.

I agree with the one investor who is worried about the short run. I guess that is it - short run. You have to be a long investor for this stock. Day traders that shake the trees to loosen investor confidence doesn't work with the long investor. Myself, I am confident with what I have researched and have seen this (your) manuovor applied here and on other message boards and in the volitality of the stock price. When USA Today was first being put together the accounts for years prior to the launch kept telling Ted Turner that USA Today will just will not work. Ted Turner has proven time again that accounts have their place. And thier place is not necessarily having business savy. If you are long, this is one to keep in your books. If you are a day trader, do us a favor and stay off this message board and leave it for the real investors.

Member Avatar TSIF (99.96) Submitted: 1/13/2010 2:11:14 PM
Recs: 1

Good pitch. nice to see one that makes an effort to include some meat to it. Successful longs should be aware of spikes and temporary over valuation and what caused them as they dollar cost in over time and as they set stops and limits, but I agree they have to be willing to go for some "rides". Day traders will shake those lose on a low volume company. Good luck with your investment. Please make some more picks and share your DD! I'm sure a diversified investor has a few others? I agree the both pumpers and dumpers clutter some of the pitches on the boards. Seems to be more of both lately.

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