Kandi Technolgies Corp (KNDI)

[bullmarket2222]

Today John Jannarone published an article titled, "Worst Stocks Win Awards In Hedge Fund 'Short' Contest" following is my email to Mr. Jannarone regarding his article.

The Kandi Short

From: [e-mail]
To: [e-mail]
CC: [e-mail]; [e-mail]; [e-mail]
Subject: The Kandi Short
Date: Fri, 10 Oct 2014 14:59:09 -0400

Dear John:

Just this week Mark Cuban reported to me that he believed Kandi Technologies Group, Inc. (NASDAQ:KNDI) was a fraud. I thought it very odd that he would share that opinion with me. Today reading your article, then Karl Richter's analysis, I realized why Mark Cuban shared his belief. I do not believe in coincidence.

Kandi's short saga, and it is a saga, is well documented. The following link is the best summary, kcmria.net/Kandi-What-Are-They-Hiding.html Todd Krajinak explains well the desperation facing the short. The real trading volume in KNDI is perhaps 100,000 shares at most. The rest is empty volume generated by the short and high frequency trading. The reported short interest is about 7 million shares and is impossible to cover. Maybe infinitely impossible to cover. Karl Richter's article is the latest and most egregious attempt to collapse KNDI and enable the short to cover.

I have authored three articles about the short position in Kandi, http://seekingalpha.com/article/2273413-short-kandi-a-misplaced-bet, http://seekingalpha.com/article/2287373-short-kandi-raised-bet-or-a-lonely-game, and http://seekingalpha.com/article/2310645-short-kandi-the-wrong-road.

My theory remains that Mark Cuban, and others, shorted a basket of Chinese reverse merger stocks in the 2008 to 2010 time frame. Many of those stocks proved to either be frauds, or if they were not frauds, they were victimized by market forces. Kandi is not a fraud and has survived the market forces and everything the shorts have done to try to effect its demise. On June 5, 2013, instead of covering a relatively modest short position at that time, the short chose otherwise and chose foolishly. Kandi is likely to become one of the greatest short squeezes in market history despite the nefarious attempts of people like Mark Cuban, Karl Richter, et al.

Respectfully yours,

Jerry Klein