Kandi Technologies Group - A Short Dilemma Oct.

Kandi Technologies Group - A Short Dilemma
Oct. 27, 2014 12:04 PM ET | About: Kandi Technologies, Corp (KNDI)
Summary

Kandi short interest at all-time high - 7.6 million shares.
Kandi remains on the Reg SHO Threshold List since 10/22/14.
Improving company, market, and regulatory fundamentals portend sharp revenue growth for the remainder of 2014 and for 2015.
Kandi to host investor and analyst meeting in San Francisco 11/12/14.

di·lemma (di lem'ә; also dī-) n. 1 any situation requiring a choice between unpleasant alternatives. 2 any serious problem

"You can pay me now, or pay me later", is a slogan made famous by a FRAM oil filter commercial, where an auto mechanic explains to his customer that he can either pay a small sum now to replace the oil and a filter, or a much greater sum later to replace the engine.

It's the customer's choice.

However, the dilemma facing the mechanic's customer pales by comparison to the dilemma facing Kandi shorts.
Consider This

KNDI appeared on the SEC Reg SHO Threshold list from September 11, 2013 through September 24, 2013. KNDI's closing price at the beginning and end of that period was $5.34 and $8.34, respectively, a 56% increase. One month later, KNDI closed at $7.84, up 47% from $5.34. KNDI appeared again on the SEC Reg SHO Threshold list from November 20, 2013 through November 30, 2013. KNDI's closing price at the beginning and end of that period was $6.78 and $7.17, respectively, a 6% increase. One month later, KNDI closed at $11.95, up 76% from $6.78. (Prices are courtesy Nasdaq.com.)

KNDI closed at $12.86 on October 22, 2014 when it appeared on the SEC Reg SHO Threshold list. At the end of November, will KNDI close at $18.90, a 47% increase, or $22.63, a 76% increase?

Either scenario is likely.

A key takeaway of a recent KNDI buy recommendation is the opening paragraph:

"We've seen Tesla Motors (NASDAQ: TSLA) launch an electric-car revolution in the U.S. by starting at the high end of the market with luxury models for affluent drivers. Now let's paint an entirely different picture: Suppose Elon Musk and team began with a play for the masses - and did so in the world's most populous nation. Kandi Technologies (NASDAQ: KNDI) is doing just that... I'm intrigued by this little disruptor."