$KNDI: EXCELLENT, INSIGHTFUL ARTICLE Now I am j
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Posted On: 01/02/2019 11:38:46 AM
$KNDI: EXCELLENT, INSIGHTFUL ARTICLE
Now I am just an old - fashioned believer, that, if you pick a young company like KNDI ...
*with Incredible Management,
+ in a dynamic multi-trillion dollar industry in which it was a “first-mover” ,
+ it is priced less around ten years later, though 25 times bigger,
+ more profitable than not,
+ trading at the same price as when it began,
+ at a 30% discount to book value, which BTW is up over 50 fold from the beginning,
then that is living proof that we must be living in a parallel universe* where all historical market rules are reversed.
* A parallel universe is a hypothetical self-contained reality co-existing with one's own.
But speaking of KNDI... In 2013 it had a horrible year losing ($.61) a share reported on Mar. 30, but that didn’t stop the stock from hitting $22.44 a share just a couple of months later.
But look at 2014, KNDI had positive Net Income of .29 a share and the stock hit a low of $5.00 shortly after the positive earnings were reported in 2015. (Parallel Universe?)
So here we are on Christmas eve and the stock intraday hit a multi-year low of 3.54, well under its $5 book value and even lower than the $4.50 price it started trading at in 2007. BUT, IT Did manage to be one of the few NASDAQ stocks that went up in the 700 points down market yesterday.
A Lump of Coal, or Once in a Lifetime Gift?
Well for those of us who have been in it for a while and have no cash to buy more, I guess for now it is a Lump of Coal. But IMO, (for whatever that’s worth) if you at least have staying power, Diamonds come from coal and EVERYTHING that has been coming out from the Company, at least in SEC filings, China Media and Conference Calls are now signaling a dynamic growth spurt has begun.
Last Quarters' revenues of almost $39 million, (Double the $20 million JV revenues thanks to diversification) was the best in a year and a half and were it not for a large one-time charge for R&D, KNDI would have been Profitable.
For the first two months of this quarter, the 3800+ EVs sold (all new versions) already beats any quarter in almost two years and 4000-6000 looks likely to be added to that number in December which even at the low end would beat last years sales by over 20%.
JV revenues alone for just the first two months of this quarter should triple last quarters and at the low end should reach $120 million or a sextuple over last quarter, And a jump to almost $200 million for the year ...for three consecutive years of JV Growth. And BTW, be very profitable.
tThis is all just great fundamental growth. (A warm and comfy to assure continued life for those who can hold, but as of recent years, no help to the stock.) BUT, As I clearly walked through in my recent KNDI article, from China Media articles out this past week, it is looking very likely...
... that sometime between now and Jan. 10th, KNDI JV will finally be awarded the Holy Grail of EVs in China, its own Production License.
From these articles, it becomes even more exciting in that as Mr. Hu told us in an earlier Conference Call, the rules for receiving a future production license were about to become much more difficult to receive. So Difficult that at this moment, no EV maker waiting in line can likely qualify until the end of 2019 UNLESS they are “Grandfathered” due to a new minimum 30,000 unit past 2 year EV Requirement about to be added. Not even KNDI can likely reach that “bar”,.
HOWEVER, as mentioned above, Mr. Hu knew this was coming when he told shareholders that he and Li Shufu were already promised to be approved under the old rules. This was likely confirmed as reliable by both Hu and Li when they decided to meet the May “last requirement” of putting in an additional $163 million in paid-in capital to the JV earlier this year.
Could the surprise jump to close on the High of the Day Monday be signaling an award as soon as later this week?
Hu Knows? * Chuckle here @ the pun !
Now I am just an old - fashioned believer, that, if you pick a young company like KNDI ...
*with Incredible Management,
+ in a dynamic multi-trillion dollar industry in which it was a “first-mover” ,
+ it is priced less around ten years later, though 25 times bigger,
+ more profitable than not,
+ trading at the same price as when it began,
+ at a 30% discount to book value, which BTW is up over 50 fold from the beginning,
then that is living proof that we must be living in a parallel universe* where all historical market rules are reversed.
* A parallel universe is a hypothetical self-contained reality co-existing with one's own.
But speaking of KNDI... In 2013 it had a horrible year losing ($.61) a share reported on Mar. 30, but that didn’t stop the stock from hitting $22.44 a share just a couple of months later.
But look at 2014, KNDI had positive Net Income of .29 a share and the stock hit a low of $5.00 shortly after the positive earnings were reported in 2015. (Parallel Universe?)
So here we are on Christmas eve and the stock intraday hit a multi-year low of 3.54, well under its $5 book value and even lower than the $4.50 price it started trading at in 2007. BUT, IT Did manage to be one of the few NASDAQ stocks that went up in the 700 points down market yesterday.
A Lump of Coal, or Once in a Lifetime Gift?
Well for those of us who have been in it for a while and have no cash to buy more, I guess for now it is a Lump of Coal. But IMO, (for whatever that’s worth) if you at least have staying power, Diamonds come from coal and EVERYTHING that has been coming out from the Company, at least in SEC filings, China Media and Conference Calls are now signaling a dynamic growth spurt has begun.
Last Quarters' revenues of almost $39 million, (Double the $20 million JV revenues thanks to diversification) was the best in a year and a half and were it not for a large one-time charge for R&D, KNDI would have been Profitable.
For the first two months of this quarter, the 3800+ EVs sold (all new versions) already beats any quarter in almost two years and 4000-6000 looks likely to be added to that number in December which even at the low end would beat last years sales by over 20%.
JV revenues alone for just the first two months of this quarter should triple last quarters and at the low end should reach $120 million or a sextuple over last quarter, And a jump to almost $200 million for the year ...for three consecutive years of JV Growth. And BTW, be very profitable.
tThis is all just great fundamental growth. (A warm and comfy to assure continued life for those who can hold, but as of recent years, no help to the stock.) BUT, As I clearly walked through in my recent KNDI article, from China Media articles out this past week, it is looking very likely...
... that sometime between now and Jan. 10th, KNDI JV will finally be awarded the Holy Grail of EVs in China, its own Production License.
From these articles, it becomes even more exciting in that as Mr. Hu told us in an earlier Conference Call, the rules for receiving a future production license were about to become much more difficult to receive. So Difficult that at this moment, no EV maker waiting in line can likely qualify until the end of 2019 UNLESS they are “Grandfathered” due to a new minimum 30,000 unit past 2 year EV Requirement about to be added. Not even KNDI can likely reach that “bar”,.
HOWEVER, as mentioned above, Mr. Hu knew this was coming when he told shareholders that he and Li Shufu were already promised to be approved under the old rules. This was likely confirmed as reliable by both Hu and Li when they decided to meet the May “last requirement” of putting in an additional $163 million in paid-in capital to the JV earlier this year.
Could the surprise jump to close on the High of the Day Monday be signaling an award as soon as later this week?
Hu Knows? * Chuckle here @ the pun !
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