The market took a break today. It didn’t move much.

From the chart above, you could see that price is still above the recent consolidation range; thus the bias is still on the upside.

$KNDI had a wild day today.  It started off going under water and then price jumped up high in the air, pause for a scenic view at the top, and then descended back into the ground in an accelerating manner.

Nevertheless, price still closed above $15.xx as well as being above support from previous high.  While the long-tail doji could signify a temporary top, it is not a top until it is confirmed.  The next few days will determine if price can still bounce from here.

$CERS finally closed above the resistance.

But this might be short-lived since they missed revenues projection and price already dropped 90 cents on the after-hour market.  I’ll be curious to see if price will bounce back in anticipation of the FDA approval.

Since $KNDI dropped back down to neutral for the day by market close and the rest of my positions were in small change mode, my port was pretty much neutral as well.

Current holdings:

KNDI, LRAD, CERS, SEED, KGJI, HALO, MZOR (fully speculated)

From my other account:

$FITX continued to correct and I continued to add more to scale-in my position.

See how price bounced back to close at the 15 MA line as well at the uptrend line?  I’m still bullish despite recent correction.

My 2 cents.

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The market rallied hard during day but gave back some before close.  Somehow, the resistance was quite formidable for the SPY to crack.

Notice that price closed right on the resistance.

$KNDI, again, brought home the big fat bacon today.

Price broke out to the upside convincingly with larger than normal volume.  Not only that, it closed above the previous high of $15.39.  What more can I say?  I’m not surprised at all for I know it is a matter of time.  Still holding all my shares long and strong.

Next, $CERS continued to move higher.

Price is now getting ready to take out $8 soon; but first, it needs to close above the current resistance of $7.85.

$SEED made another attempt to take out the resistance of $2.37 and failed once again.

However, price seems to stay well above the 15 MA line.  I’m sure a few more attempts and the resistance would give way.

$HALO continued to bounce higher.

I like the slow steady climb that was reflected on the chart.

$LRAD and $KGJI also moved higher.  The only one stock in my port that didn’t go higher is $MZOR.

With $KNDI leading the charge, my port has made new historical high today.

Current holdings:

KNDI, LRAD, CERS, SEED, KGJI, MZOR, HALO (fully speculated)

From my other account:

I was disappointed to see $FITX sold off after the gap-up.

With so many people who bought below $0.05; profit-taking was to be expected.  Despite the down day, I added a bit more today.  I think the key point right now is that Cen Biotech stays on course to complete the facility on time to get the permit to start growing and selling.  Price volatility is to be expected b/w now and completion of facility.  I intend to hold this one thru the volatility.

My 2 cents.

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Market was basically neutral today.   It did not go anywhere except to pause.  Pause is good.  Like any moving bio-mind, it needs to take a pause to rest.  Yes, the market is a bio-mind since it is made up of millions of mind.

My port(s), on the other hand, were having a Great Day!

First thing first, I sold all of $APRI (for non-performance) and bought $MZOR.  I like to see $MZOR as the next $ISRG.  I may hold this one for long-term and make it part of the $LRAD, $KNDI, $KGJI team.

The weekly chart above pretty much showed a strong upward trend.  I don’t think it will retrace that much from here; thus my buying $MZOR today just to get on board. .

$KNDI had a strong and healthy gain today.

Notice that price is now bouncing off the 5 MA line which was a good sign.

$CERS continued onward without giving back gain for the last two weeks.

Notice how price marched upward since early February without giving back gain.  This is a strong stock ready to pop on good news.

$LRAD also moved higher today.

I’m not crazy about the doji bar today but it may not mean a top yet.  Confirmation is needed before today doji bar is considered a temporary top.

Today, my top three positions, $KNDI, $LRAD, $CERS all carried my port another notch higher despite some minor corrections on others.  I’m especially disappointed with $TINY performance today.  I’ll need to re-evaluate this position tomorrow.

Current holdings:

KNDI, LRAD, CERS, SEED, KGJI, HALO, TINY, MZOR (full speculated).

Now, to my other account…

What’s a Fantastic day for me!

I bought $XTRM after researching this stock over the long weekend.

As luck would have it, news from AccessWire brought awareness to this stock and the momentum could not be stopped.  The main reason I like this stock is because of the industrial hemp (more so than the medical cannabis) which is being legalized in the Federal level by Obama signing off the $1 trillion Farm Bill.   The other main attraction of $XTRM is its low float status ($55.92 million) for a pennystock and its being a super micro-cap ($8.15 million) as of today close. Correction: $XTRM actually has about 717 million shares outstanding.

Granted that this company is a newby coming out of nowhere and thus carries the stigma of being a possible pie-in-the-sky stock.  However, the alluring part is $XTRM purchase of 40,000 acres of land in California that will allow it to grow the industrial hemp as well as medical cannabis (I believe $XTRM will have to wait until the Federal law legalizes cannabis first; otherwise, it will be too risky to operate when cannabis is still included in Federal Schedule 1 dangerous drug list.)

For a micro-cap stock like $XTRM, I believe the industrial hemp business alone will pop this one up big time.

Look at the daily chart above.  Even though I bought it at a higher open, I still ended with a 50%+ increase on my position. Wow!

$FITX news today is nothing new to me since I already figured this one out when they announced the production facility that can produce 1.3 million lbs annually.  That was the reason I kept buying when it was correcting last week.

I like to see price takes out the resistance at $0.1149 established last week.  $FITX offered an open house next Saturday which I thought was a good idea.  This should put any doubting Thomas to bed as to rather this production facility is a real deal or not.  I already know (or believe) that this is a real deal just by looking at the Canadian news regarding Lakeshore with picture of the Mayor with the Cen Biotech team.

Since I bought a boat load of $XTRM in the morning, my port was up 18% by day-end.  Although this port is about 1/10 the size of the main account (see above); I’ve a feeling that if these two cannabis stocks can really take off, this port may even eclipse the main account in a year or two in term of dollar amount.  The race is on!

My 2 cents.

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After two weeks of up days to close the year, market decided to take a correction on the first day of the new year.

Fortunately for me, six of my stocks were up today with the other three down slightly.

The biggest winner today is again $KNDI. At first, it opened down a bit and then it rallied hard all day until the last hour when profit-taking brought it down a bit.

Notice that price continued to stay above the 79 & 89 MA lines on the 5 min. chart above..

From the weekly chart,below $KNDI looks very strong.

Notice that this week bar completely trade outside the upper band of the Bollinger band.  I’ve reason to believe that $KNDI upgraded to NasdaqGS listing today opens the door for institutions to buy $KNDI.

$GALE also climbed back up above $5 today so that was another good beginning.

If you look at all the MA lines and indicators, they are all pointing up.

The weekly chart also looks strong for $GALE.

With the $ADX beginning to trend up, I see there are still room for the momentum indicators to go up before they are being labeled as overbought.

$KGJI bounced today and that was a good sign.  From the daily chart below, you could see that price action was forming a symmetrical triangle b/w the downtrend line and the 79 & 89 MA lines.

I expect a pop to the upside soon.  Perhaps, it is now $KGJI turn to run hard. If it does, It will surely propels my portfolio to higher ground since $KGJI is my third largest position right now.

Thanks to $KNDI, my portfolio opens to the new year with a bang!  An auspicious sign indeed.

Current holdings:

KNDI, LRAD, KGJI, CERS, INO, GALE, XONE, AMRN, TINY (full speculated).

From my other account:

$PHOT continues to head much higher.

If there are shortage of legal pot in Colorado, I expect to see $PHOT reach a dollar inside three months.  I will not be surprised if the magnitude of the shortage in legal pot exceeds everyone expectation.

My 2 cents.

 

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Let me start off this post with a quote from Calvin Coolidge:

Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent.

In hindsight, we know the market has marched on ahead in an upward, albeit in a wavy manner, direction in the year of 2013; nevertheless, my personal path to achieving stock market gain was an uphill battle fraught with potholes and slippery slopes.

Potholes I fell into in 2013:

• $ECTY- large losses (company filing bankruptcy)
• $ETRM- medium losses (failed Phase III study)

Slippery slopes I encountered:

• $AMRN- large losses (you know the story)
• $USU- large losses (I bailed before the reverse split and the ensuing gigantic rally afterward)
• $SZYM- medium losses (whipsawed from over-trading in downtrend market)
• $APRI- medium losses (holding against a downtrend and gave up before the recovering year-end rally)
• $NCTY- medium losses (mistake in betting big on a thinly traded and small float stock)

Despite the multiple losses I endured from the above trades, they were all managed losses.  In other words, I didn’t let these losses get out of control by averaging down.  While some of the losses were large, it was because I made the initial large bet to begin with and not as a result of averaging down   While I had suffered mental frustration with these controlled losses (who wouldn’t?), I did not wallow in self-pity, I got back up and moved on.  I am persistence because I know I can get my money back as long as I’ve my capital intact.  It is a matter of being perseverance in searching for the stocks that will give me back the money and more.

Sidebar: It is extremely important that you manage your losses according to sound money management principle.  If I had not managed my losses, I would not be able to recover no matter how persistence I could be.  The rule of trading world is that you MUST protect your capital to fight another day.  My trading style is focused on finding the hi-beta stocks that will give me the jackpot I’m looking for; thus, I know I’ve to take some hits from time-to-time.   While this has been my endeavor, I’m still developing and evolving as a trader; therefore, trading mistakes were made (as in $SZYM, $APRI, and $NCTY) and I’m learning from them.

Having covered my losses, let’s go over my wins!

• $KNDI- very large gain
• $INO- very large gain
• $LRAD- large gain
• $GALE- medium gain
• $GOGO- medium gain
• $NUGT- medium gain
• $CERS- medium gain
• $CLIR- medium gain

My biggest win in 2013 was $INO. Upon hearing about $INO, I did my research but was initially skeptical since stock price had been trading below below $1.00 for first half of the year. But when price started to climb to near dollar, I began to take notice of a possible breakout.  Then the proliferation of positive preclinical news came into the foreground.  With price advancing over $1, I began to average UP.  Not only that, I kept averaging up on each bounce up after a brief consolidation; by the time price reached $3, I was sitting on such huge gain it would be foolish not to lock in profit especially when I knew the preclinical trials result was still a long way to human trials.  In other words, the price went up too far too fast.  I exited about 80% of my position at an average price of $2.75 and the rest in mid-to-low $2.xx.  It was a very profitable trade.

$KNDI was a trade I found after I got burned by $ECTY.   Despite the punch on the stomach (figure-of-speech), I refused to give up my beliefs in the potential of EV.  $TSLA has pretty much convinced me that EV does have a place in our society after my few failed attempts to short $TSLA with put option.  My shorting $TSLA was based on simple assumption that the market cap had gone too far ahead of the fundamental; however, when I saw the actual Tesla Model S in the showroom and the elegant and simple design of the electric motor compared to the complicated ICE (internal combustion engine); I was sold on the concept of EV.

Tesla high-end car succeeds because Elon Musk knows that the top 10% of the wealth will buy the car if it looks nice and function perfectly.  And when Consumer Reports magazine gave the Tesla Model S the highest score in its Ratings: 99 out of 100 back in July, I knew then that EV is here to stay.

However, the only problem is that if $TSLA, the only EV with a much longer driving range on a single charge than its cheaper competition, already captured the top 10% wealth; who will buy the cheaper EV models with shorter range?  Hence my belief that $ECTY was the key solution to expanding the EV market for cheaper EV models.  Little did I know that $ECTY was so badly managed, despite its being the company chosen by US Department of Energy to spearhead the charging station project, that I promptly lost 80+% of my investment in a single day after $ECTY made an announcement of its major issues.

Still very much believing in the EV potential and that $ECTY mismanagement did not equal to EV failure, I kept on researching for the next EV stock to speculate.

Then I found $KNDI.

What tickle me the most about $KNDI is that it is not selling directly to the consumer which I know will not work because of the range anxiety.  Without the proliferation of charging station everywhere, it will be difficult for an accelerated growth in consumer buying.  But $KNDI is offering a solution that automatically solves the range anxiety issue; not only that it also solves the charging station issue as well.  By embracing the concepts of car-to-go and zipcar except that the EV must be returned to the garages strategically located at multiple fixed locations for recharging purposes, $KNDI found an optimal solution to the range anxiety and battery dilemma in the EV market.  What is more important is that consumers do not need to buy the car but simply rent them for a very low price that is cheaper than hiring a taxi.

At the time when I found $KNDI, price was trading around $5 after it came back down from a quick run to $8.  Because of the secondary offering after the spike to $8, the stock was mercilessly attacked by the short.  On top of that, the uncertainty from having to  wait for the new China EV subsidies that had yet to be announced only added fuel to the short.

Hmmm….

Instead of going away like most everyone because of the history of bad blood from some stock scams from China, I began to see this as an opportunity to buy when it was still cheap.  After reading all the due diligence performed by other $KNDI believers and compared them to those who short, my own analysis prompted me to start building a position in $KNDI.  While I was building my position, $KNDI was trading in a tight range b/w $4.50 and $5.50.  Plenty of patience was required on my part.

The good thing about having a large position on a stock is that you tend to watch its trading pattern very closely on a daily basis.  And when price crossed back over the 79 & 89 MA lines to the upside, I could sense a coming rally.  Thus, I decided to buy a boatload of Dec $7.50 call to supplement my stock position.  As luck would have it, right after I had bought the options, the stock became a runner the very next day.  When price reached $9 and started to reverse direction, I had the good sense to lock in profit on 70% of my option trades.  The rest I gave back to the market when it expired worthless.  Having exited most of my option trades, I decided to reduce my stock position as well to lock in profit.  My swing trade mentality was in full-swing.

From then on, I bought and sold $KNDI to supplement my core position without success for two months.  In fact, my realized gain was slowly leaking thru the multiple whip-saws from my trading in-and-out of the trading position. And then the news of Geely announcing to the public that it would have the EV version of the London black taxi available in five years.  That was all I needed to hear to double-down on $KNDI.  After the Geely announcement, I knew it was time to stop swing trading $KNDI.  Why did I feel that way?  It was the subtle message from Geely that it is committing to the EV market; otherwise, why made such a bold statement?  With $KNDI being in a 50/50 joint venture with Geely for the sole purpose of building EV cars, $KNDI has a LOT to gain from this announcement.

Again, I was correct in my assessment; thanks to my double-down on $KNDI, my gain was quite phenomenon in the last week in 2013.

Sidebar: Performing daily homework in researching for potential runner is the discipline that keeps me going forward.  And I’m not just talking about picking up stock ’cause so and so says he/she is buying.  I need to analyze the fundamental and decide if the stock has the “story” as well as a chart pattern to support it before I venture in.  If you are willing to do YOUR own analysis and homework on a stock regardless where you hear it from, the stock will become YOUR own pick; not someone pick.  And you will trade this stock according to YOUR trading strategy; not someone’s.  The benefit of doing YOUR own analysis is that you will LEARN from your mistake and grow as a trader. Otherwise, you will never grow as a trader if all you do is to follow someone pick.

My purpose of writing about my thought process in my $KNDI and $INO trades is to emphasize the importance of doing your own research.  By doing your own research, you will get a much better sense of the stock and how it is trading.  If you are the more risk-taking type, you may even augment your position size like I’ve done with $INO and $KNDI.

$GOGO came to mind as another perfect example.  After The Fly made the call on $GOGO, I began to research the stock and like what I saw.  Then I started to build up my position based on my analysis of the chart-pattern.  In other words, I began to trade $GOGO irrespective of what The Fly was doing with his $GOGO position.  If you do your own homework, you make the stock your own and you only have yourself to blame if the stock doesn’t perform.  This is the ONLY way you can learn and grow as a trader.

To conclude my post, despite having my portfolio down in the middle of the 2013 due to my losses mentioned above, I was able to climb back out of the hole and ended the year in a very positive note.

Due to my evolving as a trader, I am now focused on shepherding my current portfolio of nine hi-beta stocks for the potential run-up in 2014.  Holding on to a winning position for as long as I can is the only way to make the big bucks.  I like to see all nine of my stocks, if possible, to run the way $LNG and $CLDX ran in 2013 (both of these stocks I used to own but got out way too early!)

Current holdings:

$KNDI – I believe $KNDI will dominate in China with its business model of selling to the car-sharing garages.

$LRAD – I believe its newly minted mass-notification technology will dominate the replacement of the obsolete bullhorn speaker notification system worldwide.

$KGJI- I believe that the new wealth in China will increase consumers’ crave for 24K gold products that $KGJI will have blow-out quarter-to-quarter revenues that price has no choice but to keep going up.

$CERS- I believe that FDA will approve $CERS blood purification system.  Why?  ’cause they are selling them to Europe already without any issues.

$INO- I am “betting” that $INO has finally tweaked its synthetic DNA enough to work in human.

$GALE- I believe its Astral drug will sell well quarter after quarter.  I’m also “betting” that its NeuVax breast cancer treatment will succeed.

$XONE- I believe its 3D manufacturing machines will become dominant in the manufacturing sector.

$AMRN- I believe FDA will meet $AMRN half-way on its Vascepa label expansion.

$TINY- I believe that its portfolio of private investment in multiple nanotechnology companies will take fruition in 2014.

I wish everyone a happy and prosperous New Year!

My 2 cents.

Comments »

Market took a well-deserved breather today by staying neutral.

Meanwhile, I was sitting on a rocket that was going up, up and away…

Yes, $KNDI finally becomes relevant today.  How can it not be?  Take a moment to read the English Translation Transcript for the Q & A Session and Chairman’s Remarks for the 2013 Shareholders Meeting below at the bottom of this post.: (The bold areas are my own emphasis)

Below is the outline of the key points I’ve highlighted in the Q&A:

1. The Company has made excellent Strides this year in expanding interest in the Car Sharing program through announced signed agreements in what appears to be at least five provinces to include Shanghai, totally covering over 250 million population.
2. We expect there will be 2-3 cities launching the car sharing trials in 2014
3. enable us to become the leading pure EV provider in China
4. We expect this Car Share business model will be soon replicated into more cities throughout China

I’m sure there are many more key points in the Q&A but the above four are what I consider the most important to drive the $KNDI sales in 2014.  If anything, $KNDI may be conservative in their estimate; otherwise, why bother to expand manufacturing facilities as mentioned in Section 5 of the Q&A:

• Q:The Company has announced new manufacturing facility building agreements in three other provinces-Hainan, Shandong and now Jiangsu – to add to our current reported total capacity of 130,000 EVs per year.

I do not know if price will continue to head higher from here or there will be profit-taking and a correction after today big-run.  However, any positive confirmations such as future earning reports, completion of car-sharing garages, implementation of car-sharing garages in new cities will definitely push price upward in the same manner as $TSLA meteoric rise we have witnessed this year.

Take a look at the daily chart below:

You can’t dispute the strength of today run-up. It cut thru the Sept 26 high like a hot knife thru butter.

And when you look at the monthly chart below; whoa! What we have is a new high for the last 6 years…

As you can see, even the 5 MA line has a hard time following the strong uptrend.

Not to be overshadowed by $KNDI, $GALE and $XONE both had a strong showing today.

Take a look at the $GALE daily chart below:

Price surely bounced off the 5 & 15 MA line with the 5 now ready to cross over the 15.  And from the two momentum indicators below, you can tell that the bounce is far from over.  Price looks like it may bounce higher soon.

$XONE performed miraculously in the 3D sector simply because it went up while the other two big siblings ($DDD and $SSYS) went down.

Price is near the resistance point of $64.70 established back in Nov 14th.  I like to see price takes out that resistance soon.

The rest of the stocks in the portfolio pretty much cancelled each other with their minor ups and downs; so I won’t bother you with the charts on them.

Today was a good day for me giving that yesterday 20% run-up of $INO was followed by $KNDI 26% jump.  It was as though $INO passed the baton to $KNDI in a relay race to push my portfolio higher before reaching the end of the year.  Now, I’ll really like to see the baton passes on to $LRAD.  That will be quite a sight since $LRAD is my largest position so far.  Nevertheless, if $KNDI continues to run hard and fast next week, $LRAD may be displaced to become the 2nd largest position.

But giving the look on the chart, I see $GALE has the potential to be the next runner after $KNDI or in concurrent with $KNDI.

Current holdings:

LRAD, KNDI, KGJI, CERS, INO, XONE, GALE, AMRN, TINY (full speculated); and yes, I still have my $PHOT on my other account.

My 2 cents.

———————-

Below is the English Translation Transcript for the Q & A Session and Chairman’s Remarks for the 2013 Shareholders Meeting below at the bottom of this post.: (The bold areas are my own emphasis)

The matters discussed at this shareholders meeting may include certain forward-looking statements that represent the Company’s expectations or beliefs. These statements by their nature involve substantial risks and uncertainties, which may be beyond the Company’s control. Actual results could differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in our Annual Report on Form 10-K and elsewhere in the Company’s filings with the Securities and Exchange Commission. We encourage you to read these materials.

1.
Q: Geely and Kandi’s a 50-50 JV Partnership. How has Geely contributed to the JV in terms of distribution and marketing expertise?

A: The JV partnership with Geely is to develop EV programs in China; therefore, all the related EV programs will be included in JV. The goal for the JV is to implement Public EV sharing system. The resources of Geely and Kandi are available to be fully utilized for JV’s needs.

2.
Q: Geely has said it was turning over its extensive EV R & D to Kandi to lead Geely’s EV expansion; however Kandi has expressed no public interest to date in the “Full Sized EV” market. Is Kandi working with Geely or Volvo in developing “Full Size” EV’s for either Private or Taxi use and if so, is it as a “consultant” or will these cars be part of the JV?

A: The JV’s current panda 7001 pure EV is remodeled based on Geely’s original panda vehicle. There are also other models from Geely that are in the process of being remodeled. Volvo is a part of Geely; at the current stage, we aren’t working on any of Volvo’s vehicle models.

Q: Is there some future expectation of bringing the JV public and if so would it be in Hong Kong or Wall Street?

A: One of the major milestones we set up this year is the Joint venture with Geely Auto. We just completed the ownership transfer of Kandi Changxing to the JV Company. We truly believe this JV represents tremendous opportunities and values to Kandi’s shareholders going forward. At this point, we do not have any plan to list this company anywhere; our only plan is to make the best out of the JV partnership. , In the future, if there are any strategic benefits of listing the JV in Hongkong or mainland China, we will certainly update the market accordingly.

Q: The JV Agreement is very much like a black box – so far I see more Kandi activity than Geely activity. Can you provide a more detailed picture?

A: So far the joint venture agreement has illustrated the detailed collaboration between Kandi and Geely in terms of EV business in China. Our partnership has been working very well so far. All the news and effort you have seen in the press has been collectively from both Kandi and Geely.

3.
Q: To date there seem to be two EV’s included in the JV, the JNJ6290 and JL7002 Panda. The JNJ6290 while manufactured and sold by Kandi, is licensed under an agreement with Zoyte where it is understood that a small (300rmb) fee per car is paid to Zoyte.

A: JNJ6290’s license is now provided by Geely after the joint venture; this model will be renamed to be SMA7000BEV at the end of this month

Q: Will the Manufacturing and Sales of the JNJ6290 remain with Kandi, or will it be fully included in the JV where all future sales will be booked by the JV? If maintained by Kandi, but built in JV owned Changxing, how is the JV paid for the use of the facility?

A: Kandi will sell entire sets of parts of JNJ6290 to the JV, and the finished vehicle will be sold to the customers by the JV.

Q: Is it correct to assume that the co-developed Panda will be split 50-50 through the JV?

A: Yes, you may understand any EV under JV will be split 50/50.

Q: What is the average expected sales price of the JNJ6290?

A: The average expected sales price is about RMB 40,000 without batteries

Q: What is the average expected sales price of the JL7002?

A: The average expected sales price is about RMB60,000 without batteries

Q: What is the expected Service Life of each EV in a car sharing or leasing environment?

A: The subsidies term is 3 years, but we expect the service life will be approximately 5 years

4.
Q: Since September, the PRC Ministries have made two long awaited announcements regarding the subsidy programs. The first outlined the amount parameters and last monththe Ministries named the first 28 approved cities, which included Hangzhou, Jinhua, Shanghai, Jiangsu and Haiku, all cities that Kandi has an announced established presence. Has the actual payment of subsidies begun yet? If not, how soon is it expected?

A: We expect subsidies will begin to pay in the first quarter of 2014

Q:Can you tell us how manufacturers are to be paid the subsidies and are there additional subsidies provided by the Cities?

A:On September 17, 2013, the Ministry of Finance, the Ministry of Science and Technology, the Ministry of Industry and Information Technology and the National Development and Reform Commission (the “Four Ministries”) jointly issued Notice No. 551 of 2013, titling “Regarding the Continuous Promotion and Application of New-Energy Vehicles for the years from 2013 to 2015”. According to the new subsidy policy:

1. The subsidy payments will be distributed to the manufacturers on a quarterly basis in advance and the subsidies will then be paid by the manufacturers directly to the consumers.

2. Each local government is working on its own local level of supporting subsidy policy. We believe the local governments will soon announce their subsidy policies.

Q: Could you break down the amount of subsidies expected on each the JNJ6290 and JL7001?

A: Our understanding is that both car models will receive a subsidy of RMB 45,000 for each vehicle sold from the national government in 2014

Q: If subsidy payments have not yet started, can sales now be made before the actual start and subsidies still paid on these sales?

A:We believe as long as the car is sold during the subsidy period under the policy, it can receive the subsidy.

5.
Q: The Company has announced new manufacturing facility building agreements in three other provinces-Hainan, Shandong and now Jiangsu – to add to our current reported total capacity of 130,000 EVs per year. Are these all to be constructed within the JV?

A: Yes

Q:How are the capital requirements for the Hainan and Shandong manufacturing facilities to be/being met?

A: The JV will be responsible for raising the capital

Q:Will there be car leasing or car share programs in Hainan and Shandong and are they to remain as Kandi only or become JV programs? When do you anticipate to start?

A: All EVs that are manufactured by the JV will be used for the micro public transportation EV sharing program in China and they are getting ready to start.

Q:Are any facilities under construction yet and if so, when is completion expected on each?

A: The facility in Hainan is under construction now and is expected to be completed at the end of 2014 with the local support and assuming the weather and everything go well as planned.

The facility in Jiangsu is in the process of preparation and is also expected to be completed at the end of 2014 with the local support and assuming the weather and everything go well as planned.

As far as Shandong, we are making some strategic planning adjustments.

6.
Q: The Company has made excellent Strides this year in expanding interest in the Car Sharing program through announced signed agreements in what appears to be at least five provinces to include Shanghai, totally covering over 250 million population. What is the status of Shanghai which was announced a few months ago with anticipation of a trial program starting this year?

A: We have just launched the Carsharing program in Hangzhou and so far it has been well-received. At this point, there is no definite schedule for the trial program in Shanghai. Shanghai government is still working on selecting the location and other preparations.

Q:How many cities do you expect will at least have Car Sharing trials underway in 2014?

A: We expect there will be 2-3 cities launching the car sharing trials in 2014

Q: Please give an estimate of EV deliveries in 2013-Q4 from Kandi alone and from the JV?

A: We are expecting that there will be approximately 2,800 EVs to be delivered in Q4

Q:While 30 garages were originally anticipated to be completed in Hangzhou this year, future updates in August by the Company reported two open and 18 under construction. How many are now expected to be completed by December 31?

A:We expect there will be around 10 garages completed before Dec 31, 2013

Q: In terms of EV’s per location, what is the minimum and maximum?

A: Minimum is 30 and maximum is 300

Q: In percentage, what is the anticipated mix ratio between two and four door EVs? (ie. 80%-20%)

A: The current plan is 50/50 for each parking garage

Q: Have there been any problems getting all the needed systems to work as far as billing, etc for the garages?

A: So far everything goes well, as expected

Q:How many locations are expected in Q1 and by the end of 2014?

A: We expect to be over 50, but may be impacted by the weather and spring festival holidays

7.
Q: While the growth potential of Car Sharing easily numbers in the millions of cars over the next few years, little has been said about the long expected Hangzhou 20,000 Long Lease Program recently.

A: The 20,000 EV long term lease program is involved with the State Grid, China Aviation Lithium Battery Co., Ltd. and other related parties. The project has been progressing very slowly. The schedule is out of Kandi’s control and what we can do is to follow the State Grid’s plan. Our focus will turn to the micro public transportation EV sharing project.

Q: Has further development of this program simply been delayed by the delay of the PRC subsidy program, or is it being replaced by long term leasing through the Car Sharing Program?

A: We believe both have impacts

Q: Hong Kong Exchange listed Sinopoly and Kandi jointly announced in April that Sinopoly would be buying 1900 EVs from Kandi by this year end for the lease program. Will this still happen by this year end, or will it be extended into 2014?

A: It is a part of a long term lease project, and it’s slowly progressing. We will follow the State Grid’s plan on this project.

8.
Q: The Company should be congratulated by the recent battery purchase agreement with Premium supplier Wanxiang, particularly the excellent purchase terms. Which programs will they be supplying batteries for?

A: The majority of EVs of the current micro public transportation EV sharing project are using Wanxiang batteries.

Q: As is the case with Sinopoly, is it possible that Wanxiang will participate further than just supplying batteries?

A: We really value the opportunity of working with Wanxiang. We hope to work with them further in the future. However, currently we don’t have any plans.

Q: Will the Company start providing quarterly investor conference calls and some “guidance”, once sales start to normalize?

A: While we have confidence in launching our EV product offering in China, our progress is still in the early stages. The management is not ready to provide financial guidance at this point. However it’s our intention to keep shareholders well informed on the progress. The Company will provide quarterly investor calls when the time is appropriate.

9.
Others

Q: Since Kandi’s EV manufacturing capacity exceeds the demands of the Car Share and Car Leasing Programs, why are you not marketing plug-in EVs to individual buyers nationwide? Possibly via Geely’s showrooms? Can you see huge potential in this market?

A: Our EV manufacturing capacity has begun to rollout in 2013. Going forward in the near future, we believe our current manufacturing capacity is adequate to meet the market demand.

Q&A session ended

***

Final Remarks from Chairman and CEO, Mr. Hu Xiaoming:

Please allow me to make some ending remarks. Let me close by thanking you all for the support and patience you continue to give Kandi. I would also like to take this opportunity to thank all of the directors and management for their efforts and contribution this year. We are a company that tries our best to maximize our shareholders’ value. 2013 has been an excellent year for Kandi from many fronts:

First is the 50/50 joint venture with China’s largest privately owned auto manufacturer Geely Auto and we are grateful that Mr. Li Shufu serves as the Chairman of the JV Company, which we feel very proud about. In this JV, Kandi contributed many valuable assets, including the new full-scale EV production and assembly line in Changxing. Also, Geely’s subsidiary Shanghai Maple Guorun will soon complete the reform and reconstruction and become another EV production base for the JV Company, which will enable us to become the leading pure EV provider in China. Second is the micro public transportation EV sharing project in Hangzhou which was launched this year and has progressed pretty well. In 2014, we expect our EV business may surpass our legacy go-cart business and become a major revenue generator for the Company. We expect this Car Share business model will be soon replicated into more cities throughout China. Third is the national government subsidy policy renewal in September. With the government’s support, we expect EV sales will start to take off soon. We anticipate steady increasing demand for EVs in the coming year.

Finally, on behalf of the board of directors and the management, I would like to once again appreciate the support of all our shareholders. I assure all of you that Kandi’s management will work even harder in the coming year to enhance our product portfolio offering and further improve our communications, internal control, as well as the company transparency. I welcome you to visit our facilities in China and look forward to talking to you soon. With that, I would like to adjourn this 2013 annual shareholder meeting. Thank you very much! Wish all of you a wonderful holiday season.

 

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Yes, I bought a boat load of this calls this morning.  Here are my reasons:

1. – On September 17th, the Chinese Ministry of Finance announced the long anticipated renewal of China’s New Energy Vehicle (i.e. electric vehicle or EV) subsidies.
2. – China’s first car-sharing scheme starts in Hangzhou
3. – JINHUA, China, Aug. 9, 2013 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (the ‘Company’ or ‘Kandi’) (Nasdaq:KNDI), today announced that the construction of pure EV smart vertical parking and charging facilities for public EV sharing system (the ‘Project’) is right on schedule. According to the updated progress report, there will be five pure EV smart vertical parking and charging facilities completed in the coming September. By the end of 2013, 30-40 pure EV smart vertical parking and charging facilities are expected to be built in Hangzhou City. In a year from now, 5,000 to 10,000 Kandi pure EV ‘JNJ6290EV’ model and Kandi-Geely co-developed Brand ‘JL7001BEV’ will be deployed in Hangzhou City based on the progress.
4. – The pilot project for Public EV sharing project is very well received by Jinshan District of Shanghai and the local government is in the process of the location selection. The trial operation of Shanghai’s public EV sharing system is expected to be launched before the end of 2013.

Notice that on point 3 and point 4, if business is progressing as planned which I’m betting that it will, $7.50 will be easily taken out before December comes around.

Chartwise, the daily chart looks like a cup & handle breakout is about to happen as soon as the $5.72 high is taking out.

Of course, this is a highly speculative play where if there is no progress in the business development per above, you can lose all your option premium.

My 2 cents.

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$KNDI has entered the EV market in China by forming a joint venture with a subsidiary of China’s #1 manufacturer of passenger vehicles, Geely Holdings (GELYF) (HK.0175) to form Zhejiang Kandi Electric Vehicles Investment Co. in Zhejiang Province, China.

There are plenty of due diligences “analyses” that cover both the pro and con of investing in $KNDI.  Take your pick.  I’ve picked mine and is currently long on $KNDI.

If you follow my twitter activities, you know I’ve been accumulating $KNDI since last Wednesday.

Yes, I know what you are going to say, “What?  Another Chinese company?  You’ve got to be kidding!”

I kid you not! (grin)

Take a look at the daily chart below:

Price has taken out the 79 SMA today as well as the upper band of the Bollinger Bands.  These two breakouts combined together formed a powerful momentum in my book.

Take a look at the weekly chart below:

Look at that V-shape bounce from both the 79 SMA and 89 XMA.

Fundamentally speaking, here is a good read from someone who has done a far better job researching this company:

Kandi Technologies: Exceptional Strategy For China From An Urban Planning View

By all mean, read up on the comment section to learn both sides of the arguments b/w the bull and bear.

In my opinion, this is a highly speculative stock that has the potential to play catch-up to $TSLA if you’ve missed that train.

My 2 cents.

 

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