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Me too...
Something needs to be done about these criminals, Cary, and Associates...
I'm all for that...
Kandi will prevail.
BULL
Good question..
We discussed that already.....
Very Focused in the oil industry...
The water system is taking off.... Extremely viable.
http://ih.advfn.com/videos/stock-research/wat...SBZLyhx2S0
TECO Update...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
Sounds Great...ROTFLMAO
Just isn't true....
Cary has remained incommunicado since writing his hit piece and has never attempted to contact me. He knows he's is a liar. Cuban knows he's a liar. Karl is just an idiot...
If any of that was true I wouldn't be posting.....
Very Focused in the oil industry...
The water system is taking off.... Extremely viable.
http://ih.advfn.com/videos/stock-research/wat...SBZLyhx2S0
TECO Update...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
Sounds Great.....
In addition, PRIVCO has acquired 50% of the interest of SANDBOX RESOURCE SOLUTIONS LLC of Abilene, TX. "SANDBOX" has developed a proprietary process for converting "produced formation water" from oil and gas wells into fresh water suitable for a wide variety of applications including oilfield service, agriculture, and many other uses. The SANDBOX water management system is being used commercially by a Denver-based energy company to integrate into a constructed wetlands project North of the Yellowstone River in Montana that utilizes the treated formation water from an oil battery to provide fresh water for cattle, wildlife, and oilfield applications. Water hauling costs on this project have been reduced by approximately $3,000 per day. Over thirty five to forty water-hauling trucks per week have been reduced to three.
TREATY will incorporate the SANDBOX water processing system into its "Stockton" field operations. Initial drilling reports indicate the presence of oil but also significant quantities of water. The decision was made to "go uphole". Unfortunately, this decision rendered the well basically unproductive. TREATY's technical team believes that if they recomplete the well in the lower water bearing zones they can significantly increase oil production. The SANDBOX system will allow the company to produce significant volumes of fluid without the cost of drilling an injection well. The recycled water will have significant value in drought stricken West Texas.
In speaking about the PRIVCO opportunity Mr. Chris Tesarski, Chairman & CEO of TREATY, stated "TREATY shareholders will be pleased to note that the integration of the PRIVCO service platform will now allow the "500 Well Louisiana Project", "Project X" (certain contract opportunities in Central America and the Caribbean), and reinvigorated GEOTECHNICALLY DEFINED operations in Belize to move forward, thereby restoring the opportunity for TREATY shareholders to see value derived from what was a previously difficult chapter in the history of the company. The combination of new management and technically qualified industry personnel in TREATY and PRIVCO will allow value to be realized that had for the most part been written down by the markets and shareholders alike."
"PRIVCO's commitment to integrating a full service operation into TREATY's growth oriented production platform and the ability to network its services to a growing number of energy companies in the Americas make this transaction a very attractive one for TREATY's shareholders," says Mr. Tesarski
PRIVCO is currently involved in the process of converting to a publicly traded company by completing the process of acquiring an existing public entity. Once again, the Board is convinced that this will provide significant additional value to TREATY's shareholders. PRIVCO and TREATY will keep shareholders apprised of developments as they occur.
As part of the changes in structure to the company the Board of Directors has negotiated a stock based dividend for all TREATY shareholders in PRIVCO. During a rollout period of the next 90 days, TREATY shareholders as of September 30, 2014 (or such date as the market regulators might determine), will receive shares of the common stock of PRIVCO at a rate to be determined subject to all regulatory approvals as are common to such transactions.
In keeping with the aforementioned transaction and the commitment of the Board of Directors to increasing shareholder value, the company will undergo a process of defining TREATY's identity as an ENERGY PRODUCER. Rooted in a firm belief that the "Americas" hold vast untapped, bypassed and forgotten energy reserves the company intends to continue its focus on "finding new oil and gas in old places."
"We believe that this is the right place for us to be and welcome other players who focus on exploratory, wildcat plays, but TREATY will continue to focus on what we KNOW got left behind instead of risking shareholder value on what we believe MIGHT be there," says Mr. Tesarski.
To this end, the company wishes to announce the signing of three (3) new leases (defined by 3D seismic) in the Tuscola, TX area, not far from its Stockton operations. These leases will give the company the ability to integrate PRIVCO's service platform into operations thereby giving TREATY a strategic advantage in developing its production operations. In addition to the 3D seismic, TREATY has access through PRIVCO to thorough geotechnical data to assist in making strong, technically sound strategic development and optimization decisions with regard to its operational platform.
"TREATY shareholders have stuck with the company through some very difficult times. Liberating the oilfield service assets of TREATY and partnering with PRIVCO will lead to strong growth for our shareholders in two dynamic companies. A reenergized, reorganized and vibrant energy company and a new, visionary, and technology savvy oilfield service company. With both companies committed to a strategy of integration, the Board sees this as a tremendous step forward" stated Mr. Tesarski. He added, "It is time to ensure that our shareholders are rewarded for their loyalty to the company."
As promised, as of August 27, 2014, the company has officially engaged auditors to begin to undertake the process of bringing the company into regulatory compliance.
"I am relieved that we have been able to now fully engage in the process of getting our company into compliance," said Mr. Tesarski. "It has been my number one priority. I have promised this to shareholders and they deserve nothing less than a 100% commitment to compliance."
In addition, the Board wishes to assure shareholders that the company will commit to providing them updates on or around the 15th and 30th days of the next few months following this announcement utilizing its social media resources while it transitions the company through this reorganization and growth phase. The Board looks forward to continuing to provide its shareholders with positive developments in this new chapter in TREATY's history.
When, this is when.
As Chris starts to deliver on all these items each passing accomplishment will be met with significant buying driving the PPS higher.... Current shareholders are making this Phoenix possible.
In Greek mythology, a phoenix is a long-lived bird that is regenerated or reborn. Associated with the sun, a phoenix obtains new life by arising from the ashes of its predecessor.
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
PPS going into the pennies.....
When, this is when.
As Chris starts to deliver on all these items each passing accomplishment will be met with significant buying driving the PPS higher.... Current shareholders are making this Phoenix possible.
In Greek mythology, a phoenix is a long-lived bird that is regenerated or reborn. Associated with the sun, a phoenix obtains new life by arising from the ashes of its predecessor.
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
Sounds Great,
However TECO is still trading, and up I might add....
Hyper Scratcher Full Demonstration
http://ih.advfn.com/videos/stock-research/hyp...ld1cvytZJE
Chris D. Tesarski, Executive Chairman and CEO of TREATY Energy Corporation, stated, "September 1, 2014 marks the beginning of a new chapter in the history of TREATY Energy."
The corporation has signed a LETTER OF INTENT with a private service company, "PRIVCO" to "liberate the oilfield service" assets of TREATY Energy into "PRIVCO" as part of the process to build an exciting, diverse and growth oriented full service company dedicated to optimizing and enhancing oil and gas operations in "the Americas."
Of particular interest to TREATY shareholders will be the fact that PRIVCO has an executed JOINT VENTURE AGREEMENT with a downhole tool company whose patented process has been credited with optimizing and enhancing production on several hundred wells in Canada, Mexico and the United States. This process when paired with TREATY's oilfield services unit, will not only give PRIVCO the ability to optimize TREATY's production, but also allows PRIVCO the ability to service other clients. This business arrangement comes with a built in network of six NATIONAL distributors that have been integral in marketing the tool that will now be important to building an opportunity platform for the TREATY oilfield service assets.
In addition, PRIVCO has acquired 50% of the interest of SANDBOX RESOURCE SOLUTIONS LLC of Abilene, TX. "SANDBOX" has developed a proprietary process for converting "produced formation water" from oil and gas wells into fresh water suitable for a wide variety of applications including oilfield service, agriculture, and many other uses. The SANDBOX water management system is being used commercially by a Denver-based energy company to integrate into a constructed wetlands project North of the Yellowstone River in Montana that utilizes the treated formation water from an oil battery to provide fresh water for cattle, wildlife, and oilfield applications. Water hauling costs on this project have been reduced by approximately $3,000 per day. Over thirty five to forty water-hauling trucks per week have been reduced to three.
TREATY will incorporate the SANDBOX water processing system into its "Stockton" field operations. Initial drilling reports indicate the presence of oil but also significant quantities of water. The decision was made to "go uphole". Unfortunately, this decision rendered the well basically unproductive. TREATY's technical team believes that if they recomplete the well in the lower water bearing zones they can significantly increase oil production. The SANDBOX system will allow the company to produce significant volumes of fluid without the cost of drilling an injection well. The recycled water will have significant value in drought stricken West Texas.
In speaking about the PRIVCO opportunity Mr. Chris Tesarski, Chairman & CEO of TREATY, stated "TREATY shareholders will be pleased to note that the integration of the PRIVCO service platform will now allow the "500 Well Louisiana Project", "Project X" (certain contract opportunities in Central America and the Caribbean), and reinvigorated GEOTECHNICALLY DEFINED operations in Belize to move forward, thereby restoring the opportunity for TREATY shareholders to see value derived from what was a previously difficult chapter in the history of the company. The combination of new management and technically qualified industry personnel in TREATY and PRIVCO will allow value to be realized that had for the most part been written down by the markets and shareholders alike."
"PRIVCO's commitment to integrating a full service operation into TREATY's growth oriented production platform and the ability to network its services to a growing number of energy companies in the Americas make this transaction a very attractive one for TREATY's shareholders," says Mr. Tesarski
PRIVCO is currently involved in the process of converting to a publicly traded company by completing the process of acquiring an existing public entity. Once again, the Board is convinced that this will provide significant additional value to TREATY's shareholders. PRIVCO and TREATY will keep shareholders apprised of developments as they occur.
As part of the changes in structure to the company the Board of Directors has negotiated a stock based dividend for all TREATY shareholders in PRIVCO. During a rollout period of the next 90 days, TREATY shareholders as of September 30, 2014 (or such date as the market regulators might determine), will receive shares of the common stock of PRIVCO at a rate to be determined subject to all regulatory approvals as are common to such transactions.
In keeping with the aforementioned transaction and the commitment of the Board of Directors to increasing shareholder value, the company will undergo a process of defining TREATY's identity as an ENERGY PRODUCER. Rooted in a firm belief that the "Americas" hold vast untapped, bypassed and forgotten energy reserves the company intends to continue its focus on "finding new oil and gas in old places."
"We believe that this is the right place for us to be and welcome other players who focus on exploratory, wildcat plays, but TREATY will continue to focus on what we KNOW got left behind instead of risking shareholder value on what we believe MIGHT be there," says Mr. Tesarski.
To this end, the company wishes to announce the signing of three (3) new leases (defined by 3D seismic) in the Tuscola, TX area, not far from its Stockton operations. These leases will give the company the ability to integrate PRIVCO's service platform into operations thereby giving TREATY a strategic advantage in developing its production operations. In addition to the 3D seismic, TREATY has access through PRIVCO to thorough geotechnical data to assist in making strong, technically sound strategic development and optimization decisions with regard to its operational platform.
"TREATY shareholders have stuck with the company through some very difficult times. Liberating the oilfield service assets of TREATY and partnering with PRIVCO will lead to strong growth for our shareholders in two dynamic companies. A reenergized, reorganized and vibrant energy company and a new, visionary, and technology savvy oilfield service company. With both companies committed to a strategy of integration, the Board sees this as a tremendous step forward" stated Mr. Tesarski. He added, "It is time to ensure that our shareholders are rewarded for their loyalty to the company."
As promised, as of August 27, 2014, the company has officially engaged auditors to begin to undertake the process of bringing the company into regulatory compliance.
"I am relieved that we have been able to now fully engage in the process of getting our company into compliance," said Mr. Tesarski. "It has been my number one priority. I have promised this to shareholders and they deserve nothing less than a 100% commitment to compliance."
In addition, the Board wishes to assure shareholders that the company will commit to providing them updates on or around the 15th and 30th days of the next few months following this announcement utilizing its social media resources while it transitions the company through this reorganization and growth phase. The Board looks forward to continuing to provide its shareholders with positive developments in this new chapter in TREATY's history.
Sounds Great.....
Just no truth.....
Very Focused in the oil industry...
The water system is taking off.... Extremely viable.
http://ih.advfn.com/videos/stock-research/wat...SBZLyhx2S0
TECO Update...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
Treaty Energy Corpor (TECO)
0.0055 ? 0.0015 (37.50%)
Volume: 1,249,250 @ 2:45:48 PM ET
Very Focused in the oil industry...
The water system is taking off.... Extremely viable.
http://ih.advfn.com/videos/stock-research/wat...SBZLyhx2S0
TECO Update...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
I posted it for you to see before when you said the same thing.
Go back and find my reply. It is there for all to see that want to know the truth. Are you saying he is not?
TECO Update...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
ROTFLMAO......
He missed 2.....Sorry, it just doesn't work like that...
Missing 8k's.... Which ones are missing?
It's up to the filer if he wants to release an 8k or not.
It's not possible for them to be missing....LMAO
All that sounds great but the stock has bottomed and is currently in an uptrend.
No where but up seems more accurate....
BULL
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
he water system is taking off.... Extremely viable.
http://ih.advfn.com/videos/stock-research/wat...SBZLyhx2S0
TECO Update...
The water purification system best services the reclamation of old oil fields where water disposal issue made profitability impossible.
There are roughly 1-2 million barrels a day in the US that can be reclaimed profitably by using the system at current oil prices.
If we take a 10% cut thesis, that's 12 to 24 thousand land based units unscaled. That would be 5 to 10 billion in sales out of the US alone. For that 10 billion spent, you'd get 40 billion in oil sales yearly.
The question is ramp on production and how quickly will the commercial oil industry makes that investment. Right now it's the small companies taking 5 or 10 units that's in play. What will drive this movement is it's cost effectiveness. It's way cheaper than new drilling
A viable water system supersedes and transcends everything TECO has done to date. The system is highly scalable and and working better than indicated.
There is no better, more cost effective method, to purify oil well water than the method utilized with this system currently. It's unlikely there will be a better method anytime soon.
Many will say, if this is true, why aren't they being sold by the 1000's.... Good question....
Because it's has to be field tested over a period of time, and results have to speak the facts....
Good News, Good News.... The results are in and they have started to arrive. I'm becoming more and more Bullish.
Example.... 09/26/2014 Bought xxxxx TECO @ 0.0045
Shareholder Update: September 30, 2014
The Board of Directors of TREATY Energy Corporation is pleased to provide to shareholders the second in a series of promised updates as per the Press Release of August 29, 2014 as it seeks to reorganize and restructure the company into one that can provide return on investment to its current shareholders and provide an opportunity to attract new shareholders by appealing to the broader capital markets.
As to the PRIVCO transaction and the building of an oilfield service entity…
The transaction is proceeding according to schedule and is in the final audit and regulatory process currently as is common in all transactions of this nature.
One of the most positive developments in the PRIVCO transaction is the fact that, as reported, the Board is committed to “liberating” the oilfield service assets of TREATY (i.e. TREATY is to transfer its oilfield services assets to PRIVCO). To this end, we are pleased to announce that PRIVCO has negotiated the immediate reactivation of the “500 well drilling project” in Louisiana. We are working to get the assets moved from West Texas to Louisiana where we will partner with a private Dallas based oil and gas company to drill the wells. Positive to TREATY is that the project will encompass a debt retirement strategy as well. This is the first of what is shaping up to be many opportunities for this new entity which we believe will be of great benefit to TREATY shareholders.
The Board looks forward to continuing to update TREATY shareholders about this exciting new direction for the company.
As to SANDBOX RESOURCE SOLUTIONS LLC…
The process of installation of the Sandbox Resource Solutions (SRS) WATER MANAGEMENT SYSTEM will begin in Mid October. The high salinity system that SRS will incorporate to use in conjunction with its solids removal system will be brought from California near the end of October. We hope to have a showcase site fully operational in conjunction with the SRS operations team in November. SRS currently is in the process of placing a permanent operations team at its commercial operation in Montana. Construction is beginning there on a 3000-5000 barrels of water per day plant.
In addition, SRS continues to look to expand its operations globally and, subject to permitting, will look to install two field systems in South America by year end, pairing one SRS system with reverse osmosis for lower salinity and the other with a high salinity evaporative system, such as the one we intend to install at Tuscola.
The Board continues to believe that TREATY shareholders will receive far greater value for their investment and trust that is likely to result from the definitive strategy for the dedicated oilfield service entity.
As to an immediate Production Plan for TREATY ENERGY…
The Board firmly believes that TREATY needs to focus on low risk cash flow generating production at this time. Therefore, we are pleased to announce that we have further defined and entered into a sales agreement with a Canadian private company to acquire a working interest in a resource play in Colorado that would immediately see TREATY have a stable monthly operating revenue base coupled with significant upside potential. It is outlined in detail below.
Colorado Acquisition - Target Summary
? Target Acquisition is small non-operated working interest in approximately 1,000 net acres spread across 80 leases in the Wattenberg Field of Northern Colorado;
? Industry is investing between $4 and $6 Billion per year developing oil reserves in three separate reservoirs in the Niobrara Formation as well as one in the Codell Formation.
? New horizontal wells are drilled in a field which was developed initially with over 10,000 vertical wells;
? Small percentage of the ultimate recoverable reserves captured;
? New HZ wells come on stream at virtually virgin pressure, and flow to surface without need for any artificial lift for the first 18 months;
? Extremely low operating costs ($2 per BOE) and very high netbacks allow for attractive ROI;
? Credit Suisse has ranked the Niobrara/Codell as the third best domestic US oil and gas development project in a 2013 research paper;
? The targeted assets are currently producing 80 BOED with associated cash flow of approximately $100,000 to 125,000 per month;
? The targeted acreage is being acquired for $5.25 Million, or approximately 4 to 5 times current cash flow;
? Proved Developed Producing reserve value as of Dec 31, 2013 was $3.5 Million (CDN.);
? Total Proved and Proved plus Probable value of $10 and $23.4 Million respectively;
? Reserve bookings were based on robust new well permitting activity in 2014 forward;
? New wells are now being drilled and which will result in significantly increased PDP reserves for 2014 forward;
? Presently approximately one net well forecast to be brought on-stream in the latter half of 2014, additional one net well planned for the first half of 2015;
? With the addition of these two net wells ($8.5 to $9 Million in CAPEX) an additional 800 to 1000 BOED of initial net production will be brought on stream;
? Robust drilling program planned for 2nd half of 2015.
? Colorado Acquisition - Current Field Development & Well Economics
? Over the last 3 years, the industry has been developing the Niobrara and Codell formations with horizontal wells using multiple stage fracking completions, with excellent results.
? New HZ wells with one mile long lateral legs typically come on-stream with initial daily production of 300-350 barrels of light (42 degree API) sweet crude oil and 500-1000 mcf per day of associated solution gas (see Noble, Anadarko, Bonanza Creek, Synergy, PDC, or Encana corporate presentations available in the public domain).
? Estimated “all-in on stream” capital is $4.3 to $4.5 Million (US) per well;
? Wells pay out in 12-15 months.
? Discounted net present value for each well is $4.5 to $5 Million, creating internal rates of return of approximately 100%.
? Using a standard industry reserve estimate of 300,000 to 350,000 BOE per one mile lateral:
? Finding and development of between $12 and $15 per BOE;
? Assuming a WTI price of $95/bbl and $4/mcf, field netbacks (post royalties) range between $40 and $60 per BOE depending on relative proportion of produced oil to gas;
? Recycle ratio between 3 and 5;
? Using current drilling spacing, the targeted working interest assets have ultimate potential for 22 net wells to be drilled over the next 5 to 7 years, creating an additional $100 Million in upside NPV.
? Two joint operators have already begun their drilling program, Encana and Bayswater, with 1st Operator recently completing the first 8 wells on joint lands, and 2nd operator currently drilling their 6th of 8 wells on the first joint operation.
? With these 16 wells (approx. 0.4 net wells) an additional 150 to 175 BOED will be brought on stream, increase to current production and cash flow by 200 %.
Capital market support of the transaction is also based on a serious indication by the Board that we are taking TREATY in a new and positive direction and those efforts to restructure, reorganize and revitalize the company are sincere and unwavering.
To this end, ALL of TREATY’s shareholders will be given equal opportunity to participate in a special one time equity financing package. Based on the results of this offering, we intend to offset such raise with a mix of MANAGEABLE debt and an institutional equity package.
Additionally, as this acquisition is in a relatively close proximity to the commercial operations water management operations described above, the Board intends to use its industry contacts with these operators to introduce a water management program to the extensive drilling operations in the area in 2015, potentially reducing costs significantly. Initial discussions to this effect have taken place.
As to the Company’s Drilling Plans…
The Board wishes to reiterate its commitment to development of known hydrocarbon reserves in the Tuscola Area. We are pleased to announce that we are in the process of finalizing these leases and will be looking to permit our first well prior to year end. The important item of note for our shareholders is that this first well will be 3D SEISMIC DEFINED. In addition, the company will begin the process of offsetting the 3D seismic with additional geotechnical data available to the company through its relationships with a Houston based geotechnical firm.
TREATY intends to utilize this data and systems on ALL of its West Texas operations to ensure that it is maximizing return on its leases. The company believes that by employing ALL available tools at its disposal to make informed technical decisions, it will be better able to maximize return on investment and mitigate as much risk as is possible.
Of importance to TREATY shareholders will be the fact that the SRS system discussed previously can provide all of the water resources necessary to drill the wells near Tuscola. This will see a tremendous cost savings to the company and prove that an integrated strategy of low risk development utilizing oilfield service assets that are readily available to TREATY is a formula that should see its shareholders begin to maximize their return on investment.
In addition, part of the aforementioned activities in Louisiana through the PRIVCO contract include two small leases of 10 acres each set aside for TREATY. These leases have the ability to incorporate three wells drilled per acre. TREATY and PRIVCO have negotiated a sub contract with a respected Midland/Abilene Texas based drilling company to oversee and work with PRIVCO to fulfill drilling obligations under the proposed contract. These leases are shallow and typically are brought on at initial production rates of up to 10 bopd, averaging 5 bopd. Long life reserves in place, these wells tend to flatten at 2-3 bopd for extended periods of time with low lifting costs. The integration of the SRS system will once again save significant water costs in the development of the project but will also provide a long-term alternative to traditional higher cost hauling and disposal in the area.
As to the Legal & Corporate Matters of the company…
The Board of Directors of TREATY takes the legal obligations of the company very seriously. Much, if not all, of the issues plaguing the company are legacy issues. The TREATY legal team will be actively and vigorously pursuing resolution to ALL legal issues for and against the company, and ensuring that TREATY and its shareholders do not become the victims of any additional legal claims. To this end, TREATY is in the process of retiring two lawsuits against it and has negotiated settlements on two further claims.
As to the issues surrounding the RAILROAD COMMISSION OF TEXAS, the Board has mitigated plugging liability of C&C Petroleum Management – and by association TREATY – on four more additional leases. In addition, TREATY has negotiated with a private oilfield service company to analyze production potential on an additional four leases and will either relinquish rights to the leases and allow that company to plug wells in return for salvage, and/or determine production potential on the leases and retire debt to that company out of lease production revenues.
The Board is committed to finalizing its plan to reinvigorate and restructure TREATY into the dynamic organization as stated in the August 29th Press Release. As such, the Board will release a further update to shareholders providing further details and progress on the above on or around OCTOBER 31, 2014. The month of October will be incredibly busy for management and the Board, and we want to be able to provide a complete and meaningful update to all our shareholders.
The Board also wants to ensure our shareholders that, despite popular misunderstanding, TREATY no longer has any contractual relationships with former management and/or consultants to the company. The new Board and management will function independently of any and all ties TREATY may have had previously. The one and only exception will be during the ongoing audit process, which we hope to have a significant update as to its progress in our next shareholder update. The auditors have informed the Board that they may need to contact former CEO, Andrew Reid, to answer questions pertaining to the historical financial dealings of the company. Mr. Reid, however, no longer has any contractual arrangements with the company.
Additionally, although the Board believes that the company needs to keep an operational presence in Louisiana, it will consider transferring the corporate headquarters to Texas by the end of October. This would be more reflective of the NEW DIRECTION of the organization and further proof that the Board is serious about changing the company into a dynamic energy producer. The liberation of our service assets and reduction of overhead in Louisiana will have a significant impact on the company’s bottom line.
The Board wants to reassure TREATY’s shareholders that it is excited by the prospects ahead for all shareholders. This is YOUR company and we will continue to do everything in our power to show that we not only believe that, but will ensure our actions bear that out.
the Car Club website, they have a fleet of ICE and foreign manufactured EV's which are not part of the subsidies list if I'm not wrong.
With the ICE license plates limitation, their expansion would be pretty much limited unless they start increasing their Chinese manufactured EV fleet.
Also, I don't see Alibaba interest in have any sort of exclusivity with only one car share program. ZZY is a pretty young company and having Alipay could be just a matter of time.
Reply
Arts article with comments.....
Kandi Technologies: A Losing Battle For Trapped Short Sellers- A Rebuttal Of Karl Richter's Visit To Fantasyland.. 27 comments
Oct 12, 2014 4:24 PM | about stocks: KNDI
Mr. Richter, I am so glad you came out of the shadows and gave me a venue to respond to you farcical attack on Kandi Technologies (NASDAQ:KNDI) and me personally. You have now given me the opportunity to expose you as the shill you really are.
(Authors Note: I apologize for taking up the first quarter of this response defending Richter's direct challenge against me; feel free at any time to skip down to the section title: "Back to your farcical article- Your Credentials" to get to the important part of challenging his bogus article against Kandi.)
This InstaBlog is in partial response to an attack article against Kandi Technologies and myself for supporting Kandi Tech for over seven years, referenced in a syndicated article published on Oct. 10, 2014 titled:
"Worst stocks win awards in hedge fund 'short' contest"
As one can see in the Comment section of the above article, the original author of the "attack report" which also attacked me personally for supporting KNDI; posted a comment below the main article "Calling Me Out" with the below comment after I had the audacity to make some despairing comments about his "take" on the core published article:
KARL.RICHTER • 14 hours ago
Are you the same Arthur Porcari who got into trouble with the Securities and Exchange Commission for stock manipulation and "predictions without a reasonable basis" in 1994?
http://www.sec.gov/news/digest/1994/dig060794.pdf
Are you the same Arthur Porcari who had his securities registration revoked by the National Association of Securities Dealers?
http://finra.complinet.com/en/display/viewall_display.html?rbid=1189&element_id=1159003969
I certainly am that Arthur Porcari. But you know that and so do thousands of followers of Kandi over the last half dozen years. Why do they know who I am? For two reasons;
1) I am extremely proud of the type of multi-thousand hour detailed Due diligence I have done on Kandi (to include TWO personal trips to visit the Company in China- How many have you done?) for no compensation other than for a few free meals in China. And
2) busting irresponsible short sellers who think they found they key to guaranteed riches by hiring "guns" such as yourself to spend a few hours nitpicking and embellishing worthless antiquated minutia to distort all the positive work of decent Companies. You don't have to be a student of Psychology (which I happen to be by degree), to learn that it is a lot easier to "scare" investors out of a stock, then to scare them into one.
The problem with your article is that it was so poorly done that no one in the Sum-Zero Hedge Fund community, supposedly numbering in the many thousands, gave it any credence so you had to get it featured in some bogus contest article. My claim is proven by the fact your actual attack article was published and dated a month ago on Sept. 12, but got little traction from hedge funds until it was put out to public innocent individual investors on Friday by Mr. Jannarone's syndicated article. I say "little traction" in that the recent short interest report showing 7 million or 30% of the float, has remained stable at that level for the past month.
Last 3 Short Interest Reports- Courtesy of NASDAQ.com
(Last 3 Short Interest Reports- Courtesy of NASDAQ.com)
However, as you can see from the chart below, gross short selling had been quite low but picked up dramatically around Oct. 1. Likely on the rumor to the Sum-Zero group that your hit piece finally found an outlet for general publication to retail investors. This dramatic pickup to as high as 52% on Thursday, the day before publication, and continued, but lower net shorting on Friday, tells me we should see a large jump in the next reported short interest numbers.
Daily Short Sale Volume
Kandi Technologie
Last Trade: 12.10 -0.99 (-7.56%) Trade Time: Oct 10, 4:00pm EST Short Interest Ratio: 3.70
Disclaimer: Volume and short volume of a stock in the chart are limited to the aggregate volume traded on the NASDAQ, NYSE and OTC that has been reported to FINRA Trade Reporting Facility. We make no guarantee on the accuracy of the data. Please email any corrections or suggestions to webmaster@shortvolume.com. This site is supported by visitors like you. Thank you.
© 2011-2014 shortvolume.com. All rights reserved.
(The above table above courtesy of shortvolume.com gives a sample view of Gross Inter-day Shorting Measured by how orders were originally entered. A general rule-of-thumb is if the blue line (% of trades entered as short sale) is above 2.5 (25%), the likelihood is that day ended with net short sales added. Below 25%, likely net shares covered)
You see Mr. Richter, I am no "Spring Chicken" when it comes to dealing with short sellers. If you read my bio on Seeking Alpha you would have noted though retired for some 25 years, I was a Market Pro to include a few year Brokerage/Investment Banking stint at Merrill Lynch in the mid-'70's as well as being President and owner of a regional full service stock brokerage firm and head OTC market maker. This followed by a few years of having an IR consulting firm.
In my Brokerage firms days, I dealt with and sometimes joined in with some of the legendary short sellers of the late '70's an '80's. While I respect the good and necessary work done by short sellers to weed out the numerous "bad apple" companies that prey on innocent investors, I also detest the strategies of "bad apple" short sellers who perhaps innocently got trapped into a bad short position just due to the fact this is a China company; and are now desperately trying to sucker innocent investors into selling their stock to let that short seller out of his own trap. Jim Cramer as a former hedge fund manager does a very good job warning investors about how low Short Sellers will stoop to rescue a bad decision in this TV interview.
Jim Cramer reveals dirty tricks short sellers use to manipulate stock prices down
It is for these reasons I publish proudly under my own name (22 published articles on Kandi) and because of this, I have personally been attacked in no less than a dozen KNDI attack articles by incompetent hacks who quickly discovered "if you can't factually attack the message of the Company, then attack the messenger."
Kandi Technologies: If You Don't Like The Message, Attack The Messenger
What I find most hilarious is that all of you shills continue to link my sole interaction with the SEC which dates back to something over 25 years ago in 1989 where I was accused of creating a short squeeze. Obviously no "long" shareholder is going to make such a complaint, so what sympathy do you think you are going to get from Long shareholders pushing this in an article? What is even more hilarious is if you read the last paragraph of the Order, you will note what I was accused of was exactly what you and other shills are doing today on the "short" side with reports such as yours.
"…The commission further found that, in connection with his efforts to bring about a short squeeze in Cedar's securities, Porcari made predictions, without reasonable basis, to registered representatives that "Cedar's" stock price would rise to a specified levels within specified periods of time. Also, the Commission found that Porcari advised groups of registered representatives to purchase specified amounts of Cedar's securities simultaneously in order to raise the market price of those securities.."
Now in my defense of that charge, I didn't tell the crybaby short seller to get caught in his own trap by shorting almost 100% of that New Issue below $3 which only had a float of around a million shares. (sounds like a modern day "GoPro" but on a much larger scale, doesn't it?) Also, to be clear. If you read the "order" I was not convicted of anything by the SEC. I simple settled after fighting it for five years and a heavy five digit legal fee for me and who knows how much tax payer money for SEC costs, neither admitting nor denying any guilt and was NOT levied any fines, fees or disgorgement.
Regarding the second "FINRA (then, NASD") allegation dated April of 1989, was a fine levied against the Brokerage Firm with many brokers of which I was formally President. The Petra situation had to do with the Firms purchase of some 8,700 shares of a stock purchased at $.30 a share (yes around $2,500 worth of stock) which did shortly go up to over a dollar a share, but collapsed back to our purchase price when the deal did not happen. We Never sold the shares we bought and ultimately wrote them off as worthless. The second part of the NASD allegation was generated based on a closing transfer audit after my partner and I sold the Firm a year earlier in 1988 and voluntarily left the Brokerage Business due to the advent of competitive Discount Brokers like Charles Schwab appearing. Since we were no longer "in the business" and had no interest in returning, we never fought the decision as we were not required to pay the fine unless we elected to return as Registered brokers.
Back to your farcical article- Your Credentials;
I noticed from your Techtonics bio that in your 15 years' market experience, you spent most of your time at Susquehanna and SAC Capital Advisors. In your report, you bring out the Companies lack of institutional following. The one point I agree with you has to do with the Companies small institutional following likely due to the Company not (yet) doing Conference Calls. Yes this is likely true since no Wall Street quality analyst is going to be the first to follow a young company that does not do quarterly conference calls or give forward guidance. HOWEVER: the Company has opened up the Annual Meeting to shareholders telephoning where questions are asked and answered. The very subject that you attempt to distort was a question that was answered at last year's call:
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.
If you know anything about emerging "Disruptive Innovations" in complex societies as the PRC has in China, you would know that any Company which initially relies on announced, but not yet completely implemented actions such as; Grants, Federal and Local tax breaks and subsidies, particularly a young company that come out of a totally unrelated business like Kandi, is going to be subject to a myriad of what seems like "never ending" changes before final long term reliable rules are implemented. Even now, while KNDI has finally received a small first installment of some $31.8 million covering only the PRC Subsidy payments for sales up to March 31, 2014, they, along with all other EV manufacturers are still waiting to be paid the Hangzhou City share of subsidies for all of the EV sold to date; pair this payment along with further PRC subsides up through Sep. 31. and you get in total, the amount now owed KNDI is likely over $100 million. The fact that the PRC did pay its first installment and also requires the local Governments to effectively "match" the PRC payments, takes out the "if" leaving only the "when" for future payments.
While most US based Companies with a primary goal of enhancing their stock price would be willing to gamble with their future by premature public speculation through Conference Calls and Guidance, the heavily China politically connected CEO of KNDI knows when to speak and when to keep his mouth shut. That is how KNDI has jumped into the current #1 slot for Pure EV's in China (#2 behind BYD when Hybrids are included) and #4 Wordwide behind Nissan, Tesla, and Toyota and #9 when hybrids are included.
"Plug-in the first half of global car sales rankings: Top Ten China accounted for two seats"
Brokerage Research Recommendations.
Once again, you prove you have not done your homework. KNDI does have at least two major China based Brokerages firms in China, Though China residents are forbidden from investing in US traded Companies like KNDI, these firms have still each given "Overweight" Ratings to KNDI.
Citi Orient Securities - KNDI Ranking "Overweight"
Shun International Securities- KNDI Ranking "Overweight"
Your Two Former Hedge Fund Employers have been Two of KNDI's Largest Holders over the past year!
But, irrespective of the fact you either didn't take the time to do a thurough research on the Company, or just chose to ignore the CEO's comment above on the call, I find it very interesting that of the few 50 institutions that have reported as being Kandi Shareholders over the past year alone, both Susquehanna and SAC are included (Go to pg.2 for SAC). While you can see from this link notorious SAC did sell the last of its position in Q2, what I find it even more interesting is that Susquehanna, your home town Philadelphia based Stock and Options Market giant is not only Kandi's current largest Institutional shareholder with some 735,000 shares, but is also one of the two Hedge funds that has participated individually to the tune of over $100 million total (including warrants) in every Kandi financing since the first in 2010, to include likely having 4.9% $30 million of the recent $71 million financing you speak of in your report.
Now; "Inquiring Minds" might just wonder. "Is it just a coincidence that the only two 'Buy Side' firms you worked for in your short career on Wall Street, happened to have had enough confidence in the Company to be recently reported long shareholders of Kandi; or was this bogus report just a way for you to lash back at them for laying you off?" (Based on the poor quality of work you did on this KNDI slam based on "other peoples" antiquated and debunked attacks and maybe some disgruntled former Geely employee, don't for a second think that any intelligent investor would believe that you left a "posh" life as a Big Company Wall Street analyst with your "Bachelors of Engineering" degree to start your own research firm (Techtonic) to sell your independent research except to short sellers that are trapped and will pay for any trash, true or otherwise to be published)
Karl Richter - Portfolio Manager?
?Karl K. Richter is the founder of Tectonic Investments LLC. He has fifteen years of investment experience, including thirteen years investing in long/short equity fundamental hedge fund strategies.
Before founding Tectonic, Karl was a senior portfolio manager and founding partner at AlphaOne Capital Partners. Previously, he had eight years of experience as a portfolio manager and fundamental research analyst at Susquehanna International Group and SAC Capital Advisors. He started his career in equity research at Robertson Stephens and Lehman Brothers in San Francisco.
Education:
Massachusetts Institute of Technology, Bachelor of Science, Mechanical Engineering.
KNDI's Auditor
Though KNDI has been publicly trading in the US since 2007, only in the past year did it become recognized enough to break though the $250 million mini-micro-cap barrier. They have used the same auditor for some six years now and have had no problem arise with the SEC regarding their auditor as is likely evidenced by SEC "Effective" rulings on more than a half dozen registration statement; (three so far this year). Which BTW, should likely give a "hint" as to the direction of the SEC Fact Finding Investigation you pointed out in your report that was first published in Kandi's last years 10k.
KNDI/Geely JV- Your Comment is a Joke, Right?
It must be because it is not backed up by the actual facts. However, it is interesting how you painted the "picture" of how Geely "passed off" an "idle factory" to the JV. But wait! Isn't this what Toyota, Tesla's early "Strategic Partner", did with your beloved TSLA's one and only manufacturing facility? However, what you forgot to mention was a year prior to the JV (not KNDI, but the 50-50 JV) taking over the Shanghai Maple plant, Kandi sold their new Changxing EV plant to the same JV.
Kandi Technologies Completed China's First Full Scale Production and Assembly Line Specialized for Pure Electric Vehicles
"…This new production line combines the advanced production equipment and manufacturing technologies. It also integrates the robust manufacturing concepts and experiences of Kandi technologies and its JV partner, Geely Auto…
Mr. Hu Xiaoming, Chairman of Kandi remarked, "With the unprecedented enthusiasm and unwavering support from all levels of government leaders, Kandi Changxing will take full advantage of the technology strengths and expertise of Kandi/Geely Auto in the EV area to develop pure electric vehicles that consumers can afford to buy and drive while adopting practical business models to provide reliable and convenient services to our customers. Carrying the great expectation as well as the social responsibility, we are confident that Kandi will contribute its part in building the green economy in China."
Mr. Yang jian, Vice Chairman of Geely Automobile Holdings Limited congratulates the completion of this new production and assembly line and commented, "We have full confidence with our partnership with Kandi to further expand in the electric vehicle market. With years of exploration, Geely has accumulated rich experience and technological reserves in R&D and marketing of electric vehicles. We believe that the pure electric vehicle industry will witness a great prospect of remarkable growth in the future".
Or how about this joint announcement where Geely sent their Founding VP of Marketing who took Geely from nowhere to the #1 passenger car manufacturer in China to take over the same responsibilities at the JV. (funny how Geely's sales and stock price cratered starting about a month after they lost this SVP to the JV)
Zhejiang Kandi Electric Vehicles Co., Ltd. Appointed Mr. Liu Jinliang as Vice President of Sales & Marketing
"…Zhejiang Kandi Electric Vehicles Co., Ltd. ('the JV Company') appointed Mr. Liu Jinliang as the Vice President of Sales & Marketing for the JV Company, effective immediately.
Mr. Liu Jinliang joined Geely Auto Co., Ltd in 1995, and from 2005, Mr. Liu was in charge of the sales for Geely Auto. Mr. Liu became the Vice President of Geely Auto Holding Group ('Geely') and General Manager of Zhejiang Geely Holding Group Automobile Sales Company Limited in 2007.
Mr. Hu Xiaoming, the General Manager of the JV Company, comments, "The appointment of Mr. Liu Jinliang, one of the most seasoned and experienced sales and marketing senior executive in Geely, to become the VP for Sales and Marketing of the JV Company, demonstrates Geely's great support and focus on the new energy vehicles and the JV Company. We are confident that with Mr. Liu Jinliang in charge of sales and marketing, the JV Company will achieve great development in the new energy vehicle business."
Mr. Li Shufu, Chairman of Geely Auto Holdings Ltd., comments, "New energy vehicle is the strategic business sector for Geely. After years' preparation and accumulation in technologies and marketing, especially the cooperation with Kandi, our new energy vehicle business has entered into a fast development lane. We believe that Mr. Liu Jinliang will utilize his experience and expertise, as well as deploy his resources and take action to make a break-through for the sales of the JV Company's new energy vehicles."
You claim Geely has not transferred any of their auto technology to the JV. Once again, you didn't do your homework. Geely and KNDI jointly developed the EV version of Geely's #1 selling ICE car the Panda. This is four door EV designated the SMA7001BEV that is being used in both the carshare and long lease programs.
And let's not forget this comment from a Dec. SEC 8K filing"
"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."
Self Dealing Through Kandi USA
Not Hardly. As you pointed out, Kandi USA has always had absolutely nothing to do with KNDI. This is no different than if a Ford Motor Company heir decided to open up a Ford Master Franchise. However, I do remember before Kandi USA was started some four or five years ago. KNDI was selling their two door LSEV's to the prior distributor for slightly more than $4000 per car. By the time the end consumer had a chance to buy the car it had a sticker price of over $12,000. After Mr. Hu, KNDI's CEO's son started Kandi USA, the export prices increased some 25% and the end user price declined.
Let Call a "Spade, a Spade".
KNDI over the past four years, has been the target of more than two dozen attack articles such as yours by a half dozen sources. ShareSlueth alone (whom you credit with giving you most of your four and five year old data along with the personal attack on me) has published 13, with a 10 going back to when the stock was trading between $2.5-4.5 a share. During that time the reported short interest has grown from a reported one million shares or around 4% of the float, to the current 7 million shares or close to 30% of the float. (About the same percentage TSLA was when it finally broke out through $50 a couple of years ago)
In all of those articles, never once has any writer, (to include yourself in the current piece) ever accused KNDI of even doing anything illegal, let alone accuse them of "Fraud". All that is ever attempted is to discredit by insinuation, distortion, innuendo, mis and dis-information in order to "raise doubt" in the minds of intelligent investors to sell their stock to let the shorts out of their trap. Why has the short continued to go up along with the stock price? IMO, because of these articles. They draw attention to the Company forcing inquisitive investors to do a little research. Each day more and more intelligent investors who take a little time to truly research the Company in current light; and take the easily attained massive information proliferated all over the China Media (by using Google Translator, search words Kangdi Electric Vehicles); pair it with the "common sense" that tells China with its very cheap electricity is the one Country that has no choice but to use EV's to help alleviate their pollution problems. And the answer is overwhelmingly simple: Investors would rather be long than short KNDI.
In this current time of Stock Market turmoil and unrest, Nothing, I repeat, Nothing, happening anywhere in the rest of the World is going to negatively affect the growth of EV's in China or KNDI specifically. KNDI, with its miniscule $500 million Market cap and very strong cash heavy balance sheet increased by the recent $71 million $17.20 share financing; is going to likely increase its incredible business momentum in its trillion dollar potential sector in China. Even in catastrophe, the last stimulus that the PRC dare cut is the one to help cure their living environment. Air pollution already has the Government on the edge of Anarchy.
Mr. Richter, it is your opinion that KNDI stock price should be somewhere between "0" and $7, you are certainly entitled to your opinion.
It is my opinion that in the next few years KNDI will have a three digit share price. You would not argue that I am entitled to my opinion.
As ridiculous as it might sound in attack articles about a multi-million share a day volume NASDAQ Company such as KNDI, as mentioned above, I have been personally accused of over-supporting the stock. This is not true. I could care less what the stock does on a day to day basis. However, I proudly admit I have been extremely supportive of the Company and its brilliant Management. I have been in KNDI continuously for over seven years and expect to be holding a position on my last days on earth. At age 67. I have been in the market since 1974 when the Dow traded as low as 576 and watched the birth of most of "today's" tech giants without being smart enough to participate.
IMO, at this early stage, KNDI, while still legitimately speculative in the eyes of many, has potential that far exceeds any of those missed passed opportunities at equivalent age levels. I could care less who buys or sells the stock. It's their money and they can do with it what they want. My writings are only to help "Level the Playing Field" and not passively allow investors to sell or not partake for the wrong reasons.
Disclosure: The author is long KNDI.
Themes: Kandi Technologies, Kandi, KNDI, TSLA, EV, China EV Stocks: KNDI
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Tom Payne
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great piece Art
12 Oct, 06:22 PM Reply ! Report Abuse Like 4
Arthur Porcari
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Author’s reply » Thanks Tom, If you all have not seen it yet, Michael Nguyen also just posted an Instiblog covering the just released Sept production results. Once again, KNDI was #1 for the month and appears to have made over 6000 EV's. Lets see. How many cars did TSLA make in the month of Sept.
"Kandi Technologies Produced More Cars In September Than In H1 2014"
http://seekingalpha.co...
12 Oct, 07:24 PM Reply ! Report Abuse Like 9
cbd001
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Mr. Porcari, have you considered sharing your DD with analysts that might consider covering KNDI?
12 Oct, 08:15 PM Reply ! Report Abuse Like 4
cbd001
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Thank you Mr. Porcari for your vast DD on KNDI and willingness to take on the bashers head on!
12 Oct, 06:41 PM Reply ! Report Abuse Like 8
bullmarket2222
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Good work Arthur. It's not a fair fight as your knowledge far exceeds his agenda.
Cris Cary's reported that I was working as a Kandi shill on the message boards.
That information is patently false.
I've often been the target of such nonsense.
ELN posters had to go to court. Stock went from 1 to 20.
ACAD They had my group, email, and post disappear.
.75 to current 23 dollars.
I'm a strong, vocal, prolific opponent, of downside positions based on leveraging cash, Public smear campaign and utilizing manipulative algorithms/on high speed computers, to make profits at the cost of good honest hard working folks. I don't particularly care for folks that like to ride their coattails of those naysayers.
12 Oct, 06:46 PM Reply ! Report Abuse Like 4
teevee
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great article, Art ...i appreciate your time and effort.
please keep up the good work !!!
teevee
12 Oct, 06:48 PM Reply ! Report Abuse Like 4
MMCHINA99
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Excellent Article, exactly my feelings .. great job Art... outofplano ..Mike
12 Oct, 07:12 PM Reply ! Report Abuse Like 4
User 28039473
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Thanks Art for all that you do for us...the individual investors who is no match to these short and unscrupulous tactics. You are certainly a man with decency and integrity
12 Oct, 09:08 PM Reply ! Report Abuse Like 8
t0nutz
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thanks big Art :) appreciate all your hard work on the coverage of kndi stock.
12 Oct, 10:07 PM Reply ! Report Abuse Like 4
oneluckydog
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Long #KNDI. Alos recently long some January calls
$KNDI #shortsqueeze
12 Oct, 10:29 PM Reply ! Report Abuse Like 4
ronstubing
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I read every word of your article. It was truly informative. Letting others on the board know I have been with you since the stock was below $3 , been at your home and have kept in touch with you by phone weekly. I have had a substantial position in the stock through options and am convinced that nothing will impede our future growth to $50 or higher in the next year. Thanks again!
12 Oct, 10:39 PM Reply ! Report Abuse Like 5
Sodaking
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The pump is over to many Longs got burned on Mr.HU offerings every time kndi pops, another 230million to go almost 50% of kndi current market cap, longs getting hit with margin calls are selling and will never buy, no new buyers left, Kndi can't even make a profit with subsidies and dilution, market is droping and the trash getting thrown out
12 Oct, 11:34 PM Reply ! Report Abuse Like 0
bullmarket2222
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Stop crying . Sodaking....
Kandi produced a record 6,771 PEVs in September to end Q3 with 10,506 cars. The company produced more cars in September than the total number of cars produced in the first half of 2014.
Chinese car companies produced 32,262 NEVs in Q3, 2014, with 22,000 produced in September.
PRC estimated production for 2014 has been revised three times, from 35,000 in April to over 80,000 after September numbers are released.
Likewise, Kandi's production number was revised from 12,500 earlier in the year to 20,000 recently, and likely will need to be revised upward again.
13 Oct, 05:18 AM Reply ! Report Abuse Like 4
Marc Chang
, contributor
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Thank you Art, great work!
13 Oct, 12:42 AM Reply ! Report Abuse Like 4
Tennis1112
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Sodaking.....I think you're fizzing out.
Thanks Art...every once in a while the little guy needs some shoulders to stand on....you (and Harry Boxer) got me into KNDI about six years ago....and the news just keeps on getting better...irregardless of what short sellers attempt to do with the current price...I'm not going anywhere but to the bank. I just haven't decided to wait for $50 or $100, because both are just around the corner.
13 Oct, 01:54 AM Reply ! Report Abuse Like 4
Sam100
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Excellent article and I fully agree with you Art.
The only nagging question I have is when will they raise capital and dilute by offering the shares further to the company's preferred investment funds.
13 Oct, 03:04 AM Reply ! Report Abuse Like 0
CSIHawaii
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Nice job Art - you really wiped the floor with him!
13 Oct, 04:35 AM Reply ! Report Abuse Like 4
Royaltyk
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Well done, thanks Art
13 Oct, 08:12 AM Reply ! Report Abuse Like 2
hobserver
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Congratulations AGAIN! I've been with you in KNDI since near the beginning and you've never let me down. Thanks for your courage and for all the energy you are willing to put out to help all of us and keep us on the winning page. Great write-up! Thanks!
13 Oct, 08:48 AM Reply ! Report Abuse Like 5
Sodaking
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When someone rambles as much as ART the article isn't even readable, these cars are cheap and can buy 3 or 4 or compared to tsla 10 kndi with same $$$, is like saying I made 10,000 cars but cost 5000, I made more Byd, BMW, leaf, all BS
13 Oct, 09:15 AM Reply ! Report Abuse Like 0
Arthur Porcari
, contributor
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Author’s reply » Soda- KNDI's cars sell for more like 1/10 the price of a TSLA. However, it appears that KNDI may have produced well over double the cars that TSLA did in Sept. If true, are you of the belief that TSLA should still be trading at a 40 times higher market cap?
13 Oct, 09:24 AM Reply ! Report Abuse Like 6
Sodaking
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Once again your fudging what you say, comparing production numbers, with dollar amounts, if tsla sells 750, that's like 7500 kndi, plus tsla sells to real end users, kndi cars are all parked, no comparison
13 Oct, 10:15 AM Reply ! Report Abuse Like 0
Michael Nguyen
, contributor
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@Sodaking Kandi is targeting direct sales to consumers with its new cars coming out late 2014 and 2015. In addition, it's targeting different car segments including SUV, not just mini EV. I'm researching the likely possibility of Kandi entering PHEV market soon. This is getting more and more exciting, and I want to personally thank Art for inspiring me to invest in Kandi in early 2013.
Read my latest Instablog to learn that shorts have failed to stop Kandi from making explosive upside moves in the last few years, and there are strong fundamental reasons (eg. explosive production/sales in Q3) that they will fail again. The move could begin as soon as the market correction is over.
13 Oct, 09:41 PM Reply ! Report Abuse Like 4
Sodaking
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Targeting? researching? Possibility? Sounds like speculation. How did shorts fail if kndi is down 50% faster then it went up! longs want to sell this story of short squeeze! it's dropping cause constant dilution by Mr. HU, and selling by longs holding the bag at higher prices, longs want shorts to cover because no intelligent investor will buy this chinese speculation
15 Oct, 01:07 AM Reply ! Report Abuse Like 0
bullmarket2222
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Sure there's speculation, but too many fact exist confirming that to be true. Do your homework.
Dilution of 10% is hardly significant enough to be the cause of the recent decline.
You need to short ASAP and keep shorting.
I'll stay long and leave the light on for you.
BULL
15 Oct, 10:49 AM Reply ! Report Abuse Like 1
bullmarket2222
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There is no ramble. The information Art provides is complete and conclusive, unlike many others.
Karl Richter is nowhere to be found and has not made any comments on the board since his awesome display of ignorance.
Cris Carey from Shareslueth has remained incommunicado since posting his Kandi short thesis (LOL).
Marc Cuban has not contacted any other Kandi longs that I'm aware of.
Kandi longs have returned home from China and are highly optimistic has they have seen the Kandi production facilities, tested the EV's and met with CEO Hu.
BULL
Hangzhou electric passenger intends to fill 30,000 micro bus subsidies undecided
2014-10-14 Li Yan Jiao first electric car network
[Abstract] pure electric passenger vehicles to be given 30,000 yuan subsidy, plug-in hybrid (including by program) to give 20,000 yuan subsidy for passenger cars; pure electric buses and other benefits in accordance with national standards, give a: supporting one's subsidies. "Micro-bus" subsidy standard will be forthcoming.
October 14, the Hangzhou government website announced the "Hangzhou Interim Measures for promotion and application of new energy vehicles, financial assistance (draft)" (hereinafter referred to as the "Rules"), this "approach" is in the online state hearing.
According to this "approach", pure electric passenger can get 30,000 yuan of financial subsidies Hangzhou, plug-in hybrid (including by program) passenger will receive 20,000 yuan in subsidies than the average pilot cities with the national standard one: 1 standard lower. Subsidies for large-scale promotion of standards are Hangzhou Condi "micro-bus" models undecided. "Measures" said micro-pure electric vehicles (ie micro-bus) subsidy measures shall be formulated.
Hangzhou "micro-bus"
Subsidy standard for other models: pure electric passenger car, plug-in hybrid (including by program) buses, electric special vehicles (mainly: postal, logistics, sanitation, etc.), fuel cell vehicles, according to state subsidies, giving a : a matching grant. This means that the pure electric vehicle can get 30-50 yuan subsidy, plug-in hybrid (including by program) buses get 250,000 yuan subsidy.
In the definition of new energy vehicles, Hangzhou consistent with national definitions for pure electric, plug-in hybrid and fuel cell vehicles. In terms of access to car prices, consistent with national directory of directories, but requires car prices in Hangzhou has an independent legal personality of car sales organization, but also a filing system: basic situation of enterprises, product announcements parameters, product price, maintenance capability, service commitment, warranty period, real-time monitoring capabilities and infrastructure construction for the record to Hangzhou authorities. "Approach" does not provide the record of the project to achieve what requirements.
Infrastructure construction, according to the actual charge for electricity facilities given the highest amount of investment does not exceed 20% of the subsidies. Where the amount of subsidies given is generally 30%.
"Measures" is valid January 1, 2013 to December 31, 2015, the period of time has passed half.
"Measures" reads as follows:
Hangzhou to promote the application of new energy automotive financial assistance Interim Measures (Draft)
To implement the Ministry of Finance, Ministry of Science, the Ministry of Industry and Information Technology, the National Development and Reform Commission, "on continuing to promote the application of new energy vehicles work notice" (Finance Building [2013] No. 551) and "On the support of Beijing, Tianjin and other cities or regions promote the use of new energy vehicles to carry out the work of the notice "(Finance Building No. [2013] 805) the spirit of the city to encourage consumers to purchase and use of new energy vehicles, effectively promote the city to promote the application of a new round of new energy work, formulated Interim Measures.
A subsidy range
Individuals and units in the city to buy the cards and run new energy vehicles, vehicles should meet the requirements of pure electric vehicles, plug-in hybrid vehicles, fuel cell vehicles.
1 new energy vehicles included in the Ministry of Industry and Information Technology "Vehicle manufacturers and product announcement" and "energy-saving and new energy vehicles to promote the application of recommended models directory."
2 Non-registered in Hangzhou new energy automobile manufacturers to sell new energy vehicles in Hangzhou, to be in the city [including district and county (city)] business registration agency or commission car sales in Hangzhou has an independent legal personality.
3 involved in the city to promote the application of new energy automotive products, by new energy automobile manufacturing companies or automobile sales organization to Hangzhou, energy-saving and new energy vehicle development Coordination Group Office for the record. Filing include: basic situation of enterprises, product announcements parameters, product price, maintenance capability, service commitment, warranty period, real-time monitoring capabilities and infrastructure construction.
Second, subsidies object
Grants targeted consumers to buy new energy vehicles, including individual users and corporate users, consumers pay the sales price after deducting subsidies.
Individual users are those city residence staff, holding a valid "Zhejiang residence" or "Zhejiang introduction of talent residence permit" non-city residence staff, holding a valid city "Zhejiang temporary residence permit" and the last two years (inclusive) continuous payment (excluding overdue) social insurance in the city of non-city residence staff, Zhuhang troops (including armed police Force) servicemen, holding a valid proof of identity and more than two years of continuous residence in the city, and the cumulative annual Hong Kong, Macao and Taiwan residents live more than six months, overseas Chinese and foreigners. Hangzhou has a legitimate job and a stable residence outside the cities residents and expatriates.
User means any body corporate organization registered in Hangzhou, including government agencies, enterprises, institutions, people's organizations and social organizations.
Third, subsidies
Consumers to buy new energy vehicles in the country on the basis of subsidies, the city then given matching grants, specific criteria are:
1 pure electric passenger car, plug-in hybrid (including by program) buses, electric special vehicles (mainly: postal, logistics, sanitation, etc.), fuel cell vehicles, according to state subsidies, give 1: 1 matching grants .
2 pure electric passenger vehicles to give 30,000 yuan subsidy, plug-in hybrid (including by program) passenger given 20,000 yuan subsidy.
Among them, the micro-pure electric vehicles (ie micro-bus) subsidy measures shall be formulated.
3. infrastructure facilities in accordance with the actual charge for electricity given the highest amount of investment does not exceed 20% of the subsidies.
Xiaoshan, Yuhang and five counties (cities) in the public domain to promote new energy vehicles and charging facilities for electric input subsidies, responsible for supporting the territorial fiscal subsidies.
Fourth, application procedures and disbursement of funds
(A) new energy vehicles subsidy
Sales of new energy vehicles by manufacturers or sales agencies to apply for grants, fill out the "Hangzhou purchase of new energy vehicles, financial subsidies Application Form" and provide a copy of the following materials:
1 Sales of new energy automobile production enterprises or sales organization code certificate, business license and tax registration certificate;
2 testing organizations (required State Administration of Quality Supervision, Inspection and Quarantine accredited institution) inspection reports issued by passenger cars sold new energy models;
3 purchasers organization code certificate and business license, personal ID card buyers, the sale of vehicles, motor vehicle unified sales invoices, batteries, motors, electrical control invoice (price to prove), tax clearance certificate, vehicle ownership registration certificates and driving certificate;
4 Sales of vehicles has achieved national subsidies related materials.
(B) the charge for electricity facilities grants
By charging for electric facilities construction unit grant application, fill out the "charge for electricity infrastructure projects in Hangzhou financial subsidies Application Form" and provide a copy of the following materials:
1 project implementation unit of the business license and tax registration certificate;
2 project approval or filing (approval) file;
3 provides accounting firm issued a list of project audit reports and investment finance investment in equipment;
4. project completion and acceptance of the report.
City to apply for a quarterly financial subsidies on principle, but also visual regularly apply. Unit shall apply for grant application forms and materials of bound volumes, respectively, the Municipal Finance Bureau, the City Commission by letter reviewed to determine financial subsidies program and disbursement of funds.
V. Regulatory
1 new energy automobile manufacturers and their dealers to strictly distinguish between corporate sales incentives and government financial assistance, financial assistance may not be included in the enterprise preferential quotas may not have enjoyed price concessions and other subsidies by refusing to honor, not because of government subsidies and raise new energy vehicle sales, rental prices, ensuring consumers truly enjoy state financial subsidies.
2. the city has already received a license and municipal finance subsidies for new energy vehicles in the field operations, once verified, will recover the city financial assistance funds have been made??.
3 units to apply for grants consistency responsible for the authenticity of the application materials and products. Inconsistent with the application materials for the product, does not meet the performance requirements, and providing false information to defraud grant funds, and not in accordance with the deduction of the amount of subsidy sales of new energy automotive products, depending on the seriousness given to the recovery of the grant funds, reprimand, disqualified and other penalties.
4 grant funds must be used for other purposes, any unit for any reason, in the form of interception, misappropriation. In violation of regulations, will follow the "financial penalties for violations sanctions regulations" (State Council Decree No. 427) and the relevant provisions of the law be held accountable relevant units and personnel.
Six, sources of funding and validity
In grant funds to raise revenue from the city's main obtain total control 20 percent of small passenger car license plate auction, this approach is valid from January 1, 2013 to December 31, 2015.
The municipal finance bureau, City Commission by letter, Municipal Science and Technology Commission, the Municipal Development and Reform Commission responsible for the interpretation.
Alibaba’s Alipay mobile payment service has jumped into the car rental business, with a service rolled out in Beijing Wednesday (Oct. 15) called Che Fenxiang (“car sharing” in Chinese), according to The Wall Street Journal.
“One thing that makes the service unique is that users with good creditworthiness — determined based on their transaction data collected by Alipay — can rent a car without paying a deposit. Other users with lower credit ratings can also rent them but they have to pay a deposit,” the story said. “Rental fees vary depending on the type of car. The cheapest one is about 15 yuan an hour ($2.45), while certain vehicles like electric smart cars are more expensive. Zhejiang Ant plans to launch the car rental service in Hangzhou, Alibaba’s hometown, later this week. The service is offered jointly by Alipay and car rental firm called Hangzhou Che Lizi.”
Zhu Haiwei, a product manager for Zhejiang Ant, is quoted saying that this idea of using good credit to give consumers benefits is being trialed with the car rental service and could be added to existing Alipay services such as hotel booking and apartment rentals.
I had a call today from a fellow Kandi Shareholder.....
He was in China, went to the factories and output is accelerating.
He drove the Kandi Car and was impressed. He even got underneath the car and said work was good quality. He ended with solidly built and drives like any normal car.
BULL
Micro Bus now becoming Police Cars in the Westlake Area...
Lake District Urban Management Bureau in cooperation with the micro-bus companies, bus hire micro electric vehicles for routine inspections, compact micro bus inspectors inspect become a good helper. Micro bus just to meet two players two inspections needs, mini body, can enter the lane, alley, to solve the previous problem get in big law enforcement vehicles.
Ning Jiang Lake District Urban Management Bureau, told reporters that, from September 1 start of the river which attracted a total of 10 micro-buses, mainly for Zhuantang Town patrol the streets and double work.
Why use micro-buses it? Ning told reporters that there are three main reasons: firstly, because of the regulatory region of a very large area, the river is currently the only five law enforcement vehicles, a pickup, supervision is not enough. The second is because the micro-bus in the area of municipal roads and towns are easy to use, these small local road, many people, small and micro bus body, to solve the previous problem get in big law enforcement vehicles. The third is the use of micro-bus greatly reduces the cost, "Our car has been on the road patrol, fuel costs per vehicle per month to more than 7000 yuan, plus maintenance costs, is spending a small fortune, but as long as the expenses micro bus The annual cost of electricity and rent, electricity, then at 100 yuan per vehicle per month or less, very affordable. "Ning said.
Reporters also learned that these micro-bus conservation, environmental protection, once it is fully charged can run 80 kilometers, basically meet the needs of the day's work.
"We now have emphasized civilized law enforcement, in order to persuade based, does not require the seizure of things, so the micro-bus is very practical. And general rate of about 50 yards, very safe." Ning said.
Alipay's mobile app (Alipay Wallet) is being updated to support a car rental service that will allow users with good credit (as determined by Alipay's transaction data) to rent cars without a down payment.
The service will initially launch in Alibaba's (NYSE:BABA) hometown of Hangzhou - EV maker Kandi (NASDAQ:KNDI) supports a local car-sharing program - but will later expand to Shanghai and Beijing.
Going forward, the Chinese online payments giant sees itself handling many other types of local services payments, including hotel bookings, apartment rentals, and hospital fees. "This car rental service is like a pilot project," says a product manager.
Separately, Alipay has launched ePass, a service that handles payments for Western merchants looking to sell to Chinese consumers. Fashion retailer Gilt Groupe is among the initial supporters.
Alipay argues ePass can handle thorny currency, customs, and logistics issues that can prevent Western merchants from selling into China. U.S. chief Jingming Li: "We’ve been there for 14 years: we know the customers, know their marketing channels."
Ahead of its IPO, Alibaba restructured its deal with Alipay parent Small & Micro to give it a 37.5% stake in the event of an IPO involving a $25B+ valuation, and to obtain 37.5% of Small & Micro's pre-tax income until them. Alipay had 800M+ registered users as of June 2013.
Cuban contacted Klein to tell him the stock was a fraud based on my posting too prolifically. LMAO
Needless to say Klein knows that article was a piece of fiction.
Cuban bankrolls sharesleuth.
http://seekingalpha.com/instablog/11442671-gerald-klein/3350075-the-real-fraud
BULL
The problem Cris Cary has is that is article is patently false.
He has yet to contact me nor has he ever tried.
BULL
Treaty Energy Corporation (PN (TECO)
$ 0.0049 ? 0.0006 (13.95%)
Volume: 301,800
Shareslueth is joke and everybody knows that.
Cary has been incommunicado and never tried to contact me.
It's a good laugh.
BULL
Sounds great....
But it's hardly the truth....
BULL
I see that.....
I encourage to keep current with Kandi's progress moving forward.
Don't be shy, all opinions are welcome.
We're in a battle with some short sellers making highly questionable claims.
So far Karl (short seller) has been lame on his responses.
Go view current happenings under comments here, scroll to the bottom of the page.
http://www.cnbc.com/id/102076251?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=102076251#.
BULL
Micro Bus goes wedding....
http://www.hoolo.tv/folder212/folder225/2014-09-26/142941.html
BULL
We should start seeing some positive results soon.
BULL
Kandi Technologies Produced More Cars In September Than In H1 2014
Oct 12, 2014 2:42 PM | about stocks: KNDI, TSLA
Kandi produced a record 6,771 PEVs in September to end Q3 with 10,506 cars. The company produced more cars in September than the total number of cars produced in the first half of 2014.
Chinese car companies produced 32,262 NEVs in Q3, 2014, with 22,000 produced in September.
PRC estimated production for 2014 has been revised three times, from 35,000 in April to over 80,000 after September numbers are released.
Likewise, Kandi's production number was revised from 12,500 earlier in the year to 20,000 recently, and likely will need to be revised upward again.
Kandi once again dominates China electric car market, to date producing more than half of total PEVs, and one-third of the total NEVs produced in China.
"People who lie and deceive should remember it's a small world out there, with strange coincidences. What you give out, you get back, thrice-fold. Be ready for it!" - Nishan Panwar
Synopsis
As expected, Kandi's production took a huge jump in September. This was predicted in my latest article "Kandi Technologies: Accelerated Growth Ahead!" The main drivers for the growth are the purchase tax exemption started in September, the government mandate for 2014, and the seasonal factor as explained in the article.
The Geely/Kandi JV agreement has a 20 year term, and a 2-year notice for termination. Each company has a new factory under construction (Geely in Rugao; Kandi in Wanning City, Hainan) and both new factories are going to be contributed to the JV in 2015. Those will be the third and fourth Kandi JV factories. Surely you read that in the 10Q and 8K, so why would you say that Geely isn't contributing much and plans it to be a short-term arrangement? Your source is obviously inaccurate, if not fictional.
A quick internet search would have revealed 2 Chinese brokerage firms which give Kandi the highest rating.
Why don't you ask a high-ranking executive at BYD what they think of Kandi's prospects, now that BYD is BEHIND Kandi in NEV production for NINE MONTHS! In September alone Kandi JV produced more EV's than the first 6 months of the year. The omission of overwhelming positive evidence of Kandi's success in your analysis is one of the hallmarks of an ulterior motive. I have too much respect for an MIT degree to think it could be anything but intentional. How could you have innocently overlooked so much that is so easily available online? How could someone trained as an engineer be so superficial in his analysis? What's your excuse?
Kandi started at zero EV's in 2011 and is now the 7th biggest EV producer IN THE WORLD, ahead of Tesla! How do you accidentally miss that? You owe your readers an explanation for the agenda behind this outrageously unfair article. Anyone who has done comprehensive due diligence is certainly not short KNDI, especially not now.
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Platon Petratos • 28 minutes ago
It's real simple Mr. Richter, I'll certainly take back all I said about you when you can point out the fraud in Kandi. I'm not taking about Art's 30 year old history, my posting too much for your liking, past history on the forming of Kandi at a couple of dollars, top 5 auditors nonsense, China/RM skullduggery or any innuendo. Show us the fraud.
BULL
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Platon Petratos • an hour ago
SUSQUEHANNA INTERNATIONAL GROUP, LLP
06/30/2014
735,164
485,929
194.97
8,895
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Platon Petratos • an hour ago
Kandi's Short Seller Karl Richter's caught selling Snake Oil....Former Employer says "no way" Buys KNDI
Your Two Former Hedge Fund Employers have been Two of KNDI's Largest Holders over the past year!
But, irrespective of the fact you either didn't take the time to do a
thurough research on the Company, or just chose to ignore the CEO's
comment above on the call, I find it very interesting that of the few 50
institutions that have reported as being Kandi Shareholders over the
past year alone, both Susquehanna and SAC are included (Go to pg.2 for
SAC). While you can see from this link notorious SAC did sell the last
of its position in Q2, what I find it even more interesting is that
Susquehanna, your home town Philadelphia based Stock and Options Market
giant is not only Kandi's current largest Institutional shareholder with
some 735,000 shares, but is also one of the two Hedge funds that has
participated individually to the tune of over $100 million total
(including warrants) in every Kandi financing since the first in 2010,
to include likely having 4.9% $30 million of the recent $71 million
financing you speak of in your report.
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dantman859 • 9 hours ago
Mr Richter: Of the 4 arguments quoted in the article that you use to build your case of shorting KNDI I am going to take issue with only one as the other three have already been aptly refuted by others (a: not covered by a single analyst, b: poor choice of auditor, c: JV partner Geely "has made a very small contribution to the JV and won't be involved in the future"). Namely your claim that many "investors may think the company is the "Tesla of China" but it has very low odds of achieving such success".
First, referring to Kandi as the "Tesla of China" is not only inappropriate but shows utmost ignorance of very basic facts. Reality is Kandi is a manufacturer of low-end electric vehicles that offer a much needed affordable and green means of intracity public transportation to the millions of Chinese people living in congested and heavily polluted cities. These low- and mid-income people donot need nor can afford an expensive high-end EV like Tesla. Second, if you had followed the monthly and annual production numbers of New Energy Vehicles (NEV), especially the category of Pure Electric Vehicles (PEV) Kandi is in, publicized in many different media, you would have realized that the odds of Kandi achieving success is far from being "very low". Let me quote two very recent production statistics to refute your claim: As of End of July 2014, the Year-To-Date production of PEV in China is 17,499 units total with Kandi being the clear #1 producer at 6,929 units or a whopping 40% of total. In Sep 2014 China produced 12,200 PEV units with Kandi again the #1 with 6,771 units or 55.5% of total (see link below).
Very low odds of success? hah only in your imagination thanks to poor DD.
www.0car0.com/xnynews/x...
see more
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David H. • 11 hours ago
WOW....how many additional investors took positions based on this article posted late Friday? And why would an article like this be posted JUST PRIOR to the release of Sept production numbers? The 6771 vehicles produced in Sept completely contradicts the initial reasoning laid out for the decision to short this stock - "Richter raises serious questions about the company's ability to maintain the growth it has reported. He argues that investors may think the company is the "Tesla of China" but it has very low odds of achieving such success." haaaaaaaa
With a 254% increase quarter to quarter....do you really believe Richter's questions were serious at all? Another POOR short decision. What I am curious about is who followed who...richter on cubans coattails or vice versa?
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KARL.RICHTER • a day ago
Mr. Porcari, here you are in the comments!
Are you the same Arthur Porcari who got into trouble with the Securities and Exchange Commission for stock manipulation and "predictions without a reasonable basis" in 1994?
http://www.sec.gov/news/digest...
Are you the same Arthur Porcari who had his securities registration revoked by the National Association of Securities Dealers?
http://finra.complinet.com/en/...
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Arthur Porcari KARL.RICHTER • 5 hours ago
Karl, You Betcha I am. I want to thank you for personally "opening the door" to respond to you directly, not only to your personal attack against me, but more importantly to also thoroughly debunk your bogus work of fiction. Since I don't want to clutter up all of the worthy comments of others here, I have taken a few hours to take you and your article apart, Piece by Piece in a detailed blog titled.
Kandi Technologies: A Losing Battle For Trapped Short Sellers- A Rebuttal Of Karl Richter's Visit To Fantasyland..
http://seekingalpha.com/instab...
Enjoy and I eagerly look forward to any comments you might have the guts to post on the blog.
BTW, I hope you already have been paid your "prize money". If not, you will likely lose it after the "Judges" realize how little work you really did researching KNDI.
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CP23 KARL.RICHTER • 21 hours ago
Why don't you respond to his post from a fact standpoint instead of attacking him on a personal history standpoint?
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Riot50000 • 2 days ago
By next week, KNDI will spike again as usual. Insider confusion continues. What happens if News this weekend takes it 20% by extended market or Monday Morning? I was out already
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SOONERGOLD1 • 2 days ago
As an investor in a few different companies currently, and having over 40 years experience in the pits, I take issue with CNBC in,providing a highlighting platform for hedge funds, whose sole intention is to damage legitimate companies for their profit, by publishing "trash" as exhibited of Mr. Richter of Tectonic Investments of Philadelphia via his interview with CNBC.
The total basis for Mr. Richter's remarks are conjecture and falsehoods. Throw in a little of "his analysis" and you end up with a totally distorted view of the facts.
How do I know this? Because I just returned from a ten day trip to China to find out, first-hand, what were the truths and falsehoods regarding Kandi. With me were five other investors who wanted to complete their Due Diligence research by seeing with their own eyes what is real and what is "pump." Well we all found out that Kandi is a legitimate EV manufacturer and is currently #1 in EV sales and production in China. I know it because I actually read the Chinese EV Production Reports put out by the Chinese Central Government...And yes, Kandi is #1. To further substantiate those reports our small group of investors visited the three existing manufacturing facilities of Kandi and the Joint Venture of Kandi and Geely. Mr. Richter, in his 15 seconds of fame, told Mr. Jannarone, "that based on his analysis, Geely has made a very small contribution to the JV and won't be involved in the future." How does Mr. Richter know this insiders information? He doesn't! His statement is but another example of irresponsible analysis based on nothing. Remember Seinfeld? The facts are that during my trip I talked to former executives who worked for Geely, who now work for the Joint Venture, who indicated that production at the Shanghai facility was increasing rapidly and were very excited about the roll-out in China's second largest city. Oh, and let me not forget that Mr. Richter stated that Geely had made only a small contribution to the JV. If putting up $130,000,000, supplying some of the redesigned car designs, contributing Geely EV technology, providing design personnel from Geely to the JV, and also reassigning Geely's top sales and marketing executive to the the JV, is a small contribution then I defer to Mr. Richter's analysis. Do your homework Mr. Richter.
He also commented on Alfred Wong being the accountant and auditor for Kandi. Suggested that Kandi would be wise to find a more prestigious firm. Little does he know that Alfred Wong and Co. are ranked as #7 in Hong Kong as an SEC auditor. What's your background Mr. Richter? Yes, I made notice of your MIT degree. Congratulations! Unfortunately, however, it was in engineering and not business.
I don't wish to respond to Mr. Richter's other comments which have absolutely no merit or coherence in his rationale on what bothered him about Kandi. I will only say that Kandi is alive and well and sooner, rather than later, this short attack which Mr. Richter has been part of will disappear. Success has a way of evening things out in the long run.
Let's face it Mr. Richter, you came in second in this contest not by your knowledge of the EV industry, although you say you have a history, and or Kandi, but by sheer luck. Or, someone tipped you off of a concerted short attack on Kandi. I don't know which applies here. But, suffice it to say you have no first-hand knowledge of Kandi and shouldn't have overstepped your bounds by showing how smart you aren't.
I do, however, suggest you read my upcoming article on Kandi in seekingalpha.com next week. You will hopefully learn much more than you possess now...Remember, I was there.
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KARL.RICHTER SOONERGOLD1 • a day ago
Soonergold,
I am interested to hear about your trip to China and will look out for your next article.
I respectfully dispute your claim that Albert Wong is ranked as the #7 auditor in Hong Kong.
Albert's website lists his clients:
http://www.albertwongllp.com/
And you can also do a text search on edgar and see for yourself how often Albert Wong appears as auditor for other US equity issuers filing with the SEC.
Another resource I would recommend for your due diligence is the Public Company Accounting Oversight Board: www.pcaobus.org
What you will see there is that the current year self-report by Albert Wong (HK entity) that he filed June 2014 shows 14 issuer clients. ALL of those clients except for Kandi are penny stocks.
You can also read about the PCAOB inspection in 2013 of Albert Wong & Co LLP (the New York entity) which indicates this office has 6 clients:
http://pcaobus.org/Inspections...
And you can see the PCAOB inspection of Albert Wong & Co (Hong Kong entity) from 2010, which appears to be the last visit to that office. At that time, Albert told PCAOB they had 10 issuer clients.
http://pcaobus.org/Inspections...
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SOONERGOLD1 KARL.RICHTER • 7 hours ago
Mr. Richter,
I appreciate your reply. Although your assessment of Alfred Wong & Co. might be different than mine I am convinced that his company knows what they are doing and is independent. I do not make statements which I can't corroborate (see below).
Firstly, the SEC has never investigated and or brought to task any of his certified audits to the SEC. Secondly, as an example of his independence his company insisted that Kandi accept GAAP procedures of reporting approximately 2 years ago, AW&C has also publicly stated that Kandi needed to shore up their accounting control procedures about a year ago. If his company was anything short of honest, as in bought and paid for, he wouldn't have taken those actions.
Please find below the Top 25 Hong Kong SEC Auditor Rankings:
http://www.marcumbp.com/TOP25S...
Btw, do you have any degrees in accounting to support your belittling of AW&C? I do....
I must confess, that I feel your analysis, somewhat based on already refuted allegations by Sharesleuth in the past, and the character assassination of Arthur Porcari as per Chris Carey of that same "rag", were the basis of my responses to you previously. I felt that you buying into what Mr. Carey said, and then making it an integral part of your submission to FactSet was not only irresponsible but nasty. Btw, to my knowledge, the SEC findings and subsequent censure of Mr. Porcari was not a "criminal action" as alleged by Mr. Carey, and substantially repeated by you when you did your cut and paste job of Mr. Carey's rantings. Look it up. It's public record. If you had pled your analysis based solely on your own DD you might have established a modicum of credibility, but you chose otherwise. Then again, I basically differ with just about all your analysis, excepting some statements here and there. I hate saying this, but your research was shoddy at best. I know..I was there and saw and learned with my own eyes and ears some of the outstanding questions that I needed to answer for myself. Mr. Richter, truth be told, some of your more outrageous conclusions are puzzling which must have been based on guesswork and not fact.
Know this Mr. Richter. Anyone can character assassinate another. If I chose to, which I don't, not my style unless provoked, I'd venture to say that you and your company could not withstand an aggressive assault by innuendo, misleading statements, and outright falsehoods. Everybody has weaknesses or vulnerabilities Mr. Richter. Don't make this a game of personal considerations. Stick with facts that are integral to what you are really writing about. Example: If someone would target you personally any response you might have will be after the fact, and any apologies, retractions and or corrections will be published on page 48 of the NY Post. Get my meaning? Stay away from that crap.
Another $.02 worth of advice, If you have something to say do not utilize the "trash" of others to justify your conclusions or unwittingly or do the dirty work of others; especially listening to one Chris Carey who has carried a vendetta of sorts with Kandi for over seven years. He has failed at every turn and will continue to do so in the long term. His mistake from the beginning has been that he has made this personal. Please don't get caught up in his web of deceit and contradiction.
Btw, on a positive note, you are the first of Kandi's detractors, who have had the courage to enter into any kind of conversation with me. I appreciate that.
Harris Goldman
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John Jannarone SOONERGOLD1 • 2 days ago
The link to his entire report is available via the hyperlink.
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SOONERGOLD1 John Jannarone • 2 days ago
Thanks John...I have just finished reading his semi-professional analysis, wink wink, and would love the opportunity to go head to head with Mr. Richter to see who is telling the truth and who is living in Fantasyland. Could you arrange that? Much of what he says in his factless analysis appears to be almost a cut and paste job from previous attack articles by Sharesleuth on Kandi. Now I get it! Missed it the first time around. He talked to Chris Carey who has been attacking Kandi for over seven years. I still remember the "mysterious spy" episode in which he claimed that one of his investigators found out, from an unnamed source of course, that Kandi was a total fraud. Chris Carey the infamous shill for Mark Cuban, owner of the Mavericks, who finances Sharesleuth and shorts Mr. Carey's recommendations...Open record John. Part of the SEC's investigation of Mr. Cuban. Cuban actually admits it under examination. Ethical considerations be damned!
A couple of things I'm very curious about....His analysis of the Geely/Kandi connection of contributions relies on conversations he had with Geely executives. Was one a Li Shufu? When I write articles I always attribute important conversations with a name or a link as to who provided me this information. It's called the credibility factor. Mr. Richter just says he talked with somebody...Nameless. My question, which we readers have a right to know, is with whom? Was it the janitor, the chauffeur, or the milkman? To be fair I take what he said as a "falsehood" unless I know whom he talked to and would be willing to corroborate his assertions ...Again, this isn't a "deep throat" from Watergate scenario. Or, is his copycatting his mentor Chris Carey with another "mysterious spy" episode.
The next thing I'm curious about is his claim that Kandi EV's are nothing more than glorified golf carts. How does he know this. Has he ever driven one? Does he also know that the MIIT has approved Kandi and it's EV's for road use? Does he even know who the MIIT is? The facts are that he hasn't ever driven a Kandi EV, and for Mr. Richter's edification the MIIT is the testing and approval arm of the Central Government on all vehicles whether they be ICE's or EV's. It might surprise Mr. Richter that Kandi has over ten approved models for road worthy cars and light trucks/vans...As to my original question on whether Mr. Richter has ever driven one to come to his conclusions that Kandi isn't a legitimate EV manufacturer. Well Mr. Richter, I have ridden two. Yes, It's no Tesla but it doesn't have to be one. I reached 50 mph in my test run. That was both in the two and four-door models. Btw, Kandi just recently announced a redesigned Geely Legrand EV model that will be released before the end of 2014 under the Kandi logo. Listen to Mr. Richter when he says how Geely is not contributing very much to the JV. I guess it's good to know he has a "deep throat" source every once in a while. And Mr. Richter the age old cliche still rings true..."If you're willing to give you also must be willing to receive."
Apparently, Mr. Richter can't get over and doesn't quite understand is that Kandi and Tesla are not competitors. Kandi is creating affordable, serviceable inner city cars for the emerging middle class of China. Kandi doesn't sell their EV's to the end user. It only rents or leases them. That's their business model, and it's working. He also is completely ignorant as to Kandi's game changing technology named QBEX for EV's. My oh my, glorified golf-carts he says. Now that I think about it Mr. Richter should read all my articles on Kandi that appeared in seekingalpha.com. Mr. Richter to expand his knowledge horizon from just Chris Carey.
That's all for the moment. Maybe Mr. Richter will show up here for a little not so private tete a tete. I would like that.
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KARL.RICHTER SOONERGOLD1 • a day ago
Soonergold,
All comments appearing in "quotes" in my note about Geely are attributable to a Geely executive. I have not attempted to reach Li Shufu directly.
Lively conversation! Let's continue it and get to the truth!
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Arthur Porcari KARL.RICHTER • 5 hours ago
Mr. Richter, You said: "All comments appearing in "quotes" in my note about Geely are attributable to a Geely executive."
Is this comment just a subterfuge thinking that a reader will just take your word or are you serious?
I just went back to read your "note" and I only see the following in "quotes"
The word "disposal"
The partial sentence; "the business scope of the JV is to develop, manufacture, and sell auto parts"
The partial sentence; "the parties agreed the JV can use certain of their trademarks, patents and technologies free of charge and have entered into patent license agreements with the JV"
the two words: "disposal of"
the partial sentence; "it is inappropriate for me to answer questions about Kandi Electric"
and finally, "Geely's new energy product and technology plan is independent from the JV and involves quite a lot of other technology partners, technologies and products"
This all sound almost exactly like the language that was in the Initial JV agreement filed with the SEC 20 months ago. So how is it that you now feel something has changed? Or is this just another example of the "Big Lie" theory where one person makes such an outrageous statement that he expects a reader to believe its true without checking for oneself"?
Link to the original JV agreement. SEC form 8K
http://www.sec.gov/Archives/ed...
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Platon Petratos Arthur Porcari • 2 minutes ago
Art, don't you realize that Karl is lame. He possess no smoking gun and is not even keeping up with the facts. It's a dog and pony show now for him now. Anybody investing with Karl should seriously consider a change in venue.
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SOONERGOLD1 KARL.RICHTER • 7 hours ago
Name a name! How would we know that your conclusion has any validity without corroboration?
C'mon Mr. Richter we have gone through this lame exercise before.
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Steve Fowler KARL.RICHTER • 12 hours ago
Mr. Richter, I was also among the group of Kandi investors that visited China to check out Kandi, and spoke directly to Mr. Hu a month ago. Here is a excerpt for our notes on Mr. Hu's direct comments about Geely's contribution and committment to the JV....
He, (Mr. Hu) also feels lucky that Geely came to operate with his business.
Geely has three main businesses:
1) Traditional Cars
2) New Energy Industry
3) Volvo
And Geely puts the New Energy Vehicles as a high priority. That's why it has put a lot of resources into the JV. For example - the four most talented people from Geely have come to the JV.
I posted this information on the Kandi private board over a week ago.
Mr. RIchter, are you calling Mr. Hu a liar?
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Steve Fowler Steve Fowler • 12 hours ago
Also, Mr. Hu mentioned that Geely has, and continues to, contribute greatly to the JV R&D and IP efforts (the coming launch of the Cyclone, the Urban Beauty, and the City Cowboy models are evidence of that. Did you notice the touch screen dash on the interior picture of the Cyclone? Where do you think that technology came from?
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Arthur Porcari • 2 days ago
BTW, KNDI does have a research following in China with "Overweight" Ratings. Perhaps you should do your own homework before pontificating ignorance.
Shun International Securities -Kandi-Overweight Rating
"Condi car industry (KNDI): a new model electric passenger beneficiaries. Company shares left-right business model using time-sharing operating lease Hangzhou micro bus project, due to the effective subsidies and policy support, Kandi pure electric cars selling well, sales in 2014 are expected to pure electric vehicles will reach more than 12,500 amount, earnings significantly improved, while Condit and Zhuhai, Chongqing, Suzhou, Sanya City, signed a memorandum of timesharing plans to promote electric vehicles leasing business model.Established in Shanghai in cooperation with Geely Maple phase electric car production line in February 2014, production capacity bottleneck break, future sales are expected to continue to improve, maintain "overweight" rating."
http://translate.google.com/tr...
Citi Orient Securities- KNDI - "Overweight"
http://translate.google.com/tr...
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Arthur Porcari • 2 days ago
Re-KNDI- Geely to date has invested over $130 million USD in the KNDI Geely JV as per their own financial reports in just over a year. . Just this week KNDI put out a PR on a new EV that was spawned from both KNDI and Geely to add to the 13000 or so EVs they have jointly made so far this year. .
Kandi's New Pure Electric Vehicle Model "Cyclone" Expected to Launch at Year End
By GlobeNewswire, October 06, 2014, 08:32:00 AM EDT
JINHUA, China, Oct. 6, 2014 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (Nasdaq:KNDI) (the "Company" or "Kandi"), today announced that its new pure electric vehicle model KD17 "Cyclone", jointly developed by Kandi and Geely Automobile Holdings Ltd. ("Geely"), passed the evaluation done by the executive team of Kandi Electric Vehicles Group Co., Ltd, the joint venture formed by Kandi and Geely's 99%-owned subsidiary, on September 30, 2014.
Read more: http://www.nasdaq.com/press-re...
What grounds doe this Richter shill have for making the below comment? Particularly since Geely has transferred over some of its top long time Executives to the JV to include its 20 Year Sr. VP of Marketing to the same position at the JV.
"Richter said. But based on his analysis, Geely has made a very small contribution to the JV and won't be involved in the future."
I am curious. KNDI has had a short in excess of 3 million shares since it was trading below $4 a share over a year ago. At that time the float was half of what it is today due to KNDI being able to get SEC Registrations on several financings (apparently the SEC is not as concerned about KNDI's auditors as you are) Now the short has had to suffer the price is it tripled during that time and the short has jumped to 7 as reported just yesterday million after the stock has taken two rides to over $22 this year.
What awards were you giving when your short selling friends were struggling with massive paper losses at that time? Or is this piece of yours just a panic sign of desperation by shorts buddies who now see the volume going away an are still stuck in a 7 days to cover short?
KNDI will be reporting Q 3 numbers one month from today. It has been published on many third party media sites both in China and the US that KNDI was ranked #8 in 1st Half World Wide EV/ Hybrid EV sales behind such luminaries as Nissan Leaf, Ford, Chevy, BMW, Mitsubishi, BYD, Toyota and Tesla. I don't blame the shorts from panicking and needing your pathetic services to help them cover before earning come out..
http://translate.google.com/tr...
BTW, The below link is an article published today in China by International Economist, Jeremy Rifkin that Ranks KNDI's China CarShare by name up there with the ranks of AliBaba in developing a much needed Divestiture Technology for China..
https://translate.google.com/t...
Good luck to your short selling buddies, they are going to need it.
JMHO
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Tyler Blake • 2 days ago
So.. the suggestion is to short $KNDI which is going to be pumped by the chinese govt sort of like how Daqin Railway and others are pumped by the CCP. I thought these 'professionals' learned from shorting TSLA not to short things that are subsidized by the government and have a high growth trajectory. What nonsense. Some more investors are going to lose the shirts on their backs due to the inanity of so called 'professionals' who just don't get it.
Where's Whitney Tilson? Maybe get his input on shorting Tesla and how that worked out.
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SmarterestestHuman • 2 days ago
This is an utter distortion on KNDI. Chinese Gov't is offering subsidies to people who buy KNDI EVs. Growth QoQ is in the 100's of %s, so this 'game' short sellers play is not at all based on reality.
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: gwklein@outlook.com
To: john.jannarone@nbcuni.com
CC: karl.richter@tectonicinvestments.com; ir@kandigroup.com; echen@pryorcashman.com
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
Kandi Technologies: A Losing Battle For Trapped Short Sellers- A Rebuttal Of Karl Richter's Visit To Fantasyland.. 0 comments
Oct 12, 2014 4:24 PM | about stocks: KNDI
Mr. Richter, I am so glad you came out of the shadows and gave me a venue to respond to you farcical attack on Kandi Technologies (NASDAQ:KNDI) and me personally. You have now given me the opportunity to expose you as the shill you really are.
(Authors Note: I apologize for taking up the first quarter of this response defending Richter's direct challenge against me; feel free at any time to skip down to the section title: "Back to your farcical article- Your Credentials" to get to the important part of challenging his bogus article against Kandi.)
This InstaBlog is in partial response to an attack article against Kandi Technologies and myself for supporting Kandi Tech for over seven years, referenced in a syndicated article published on Oct. 10, 2014 titled:
"Worst stocks win awards in hedge fund 'short' contest"
As one can see in the Comment section of the above article, the original author of the "attack report" which also attacked me personally for supporting KNDI; posted a comment below the main article "Calling Me Out" with the below comment after I had the audacity to make some despairing comments about his "take" on the core published article:
KARL.RICHTER • 14 hours ago
Are you the same Arthur Porcari who got into trouble with the Securities and Exchange Commission for stock manipulation and "predictions without a reasonable basis" in 1994?
http://www.sec.gov/news/digest/1994/dig060794.pdf
Are you the same Arthur Porcari who had his securities registration revoked by the National Association of Securities Dealers?
http://finra.complinet.com/en/display/viewall_display.html?rbid=1189&element_id=1159003969
I certainly am that Arthur Porcari. But you know that and so do thousands of followers of Kandi over the last half dozen years. Why do they know who I am? For two reasons;
1) I am extremely proud of the type of multi-thousand hour detailed Due diligence I have done on Kandi (to include TWO personal trips to visit the Company in China- How many have you done?) for no compensation other than for a few free meals in China. And
2) busting irresponsible short sellers who think they found they key to guaranteed riches by hiring "guns" such as yourself to spend a few hours nitpicking and embellishing worthless antiquated minutia to distort all the positive work of decent Companies. You don't have to be a student of Psychology (which I happen to be by degree), to learn that it is a lot easier to "scare" investors out of a stock, then to scare them into one.
The problem with your article is that it was so poorly done that no one in the Sum-Zero Hedge Fund community, supposedly numbering in the many thousands, gave it any credence so you had to get it featured in some bogus contest article. My claim is proven by the fact your actual attack article was published and dated a month ago on Sept. 12, but got little traction from hedge funds until it was put out to public innocent individual investors on Friday by Mr. Jannarone's syndicated article. I say "little traction" in that the recent short interest report showing 7 million or 30% of the float, has remained stable at that level for the past month.
You see Mr. Richter, I am no "Spring Chicken" when it comes to dealing with short sellers. If you read my bio on Seeking Alpha you would have noted though retired for some 25 years, I was a Market Pro to include a few year Brokerage/Investment Banking stint at Merrill Lynch in the mid-'70's as well as being President and owner of a regional full service stock brokerage firm and head OTC market maker. This followed by a few years of having an IR consulting firm.
In my Brokerage firms days, I dealt with and sometimes joined in with some of the legendary short sellers of the late '70's an '80's. While I respect the good and necessary work done by short sellers to weed out the numerous "bad apple" companies that prey on innocent investors, I also detest the strategies of "bad apple" short sellers who perhaps innocently got trapped into a bad short position just due to the fact this is a China company; and are now desperately trying to sucker innocent investors into selling their stock to let that short seller out of his own trap. Jim Cramer as a former hedge fund manager does a very good job warning investors about how low Short Sellers will stoop to rescue a bad decision in this TV interview.
Jim Cramer reveals dirty tricks short sellers use to manipulate stock prices down
It is for these reasons I publish proudly under my own name (22 published articles on Kandi) and because of this, I have personally been attacked in no less than a dozen KNDI attack articles by incompetent hacks who quickly discovered "if you can't factually attack the message of the Company, then attack the messenger."
Kandi Technologies: If You Don't Like The Message, Attack The Messenger
What I find most hilarious is that all of you shills continue to link my sole interaction with the SEC which dates back to something over 25 years ago in 1989 where I was accused of creating a short squeeze. Obviously no "long" shareholder is going to make such a complaint, so what sympathy do you think you are going to get from Long shareholders pushing this in an article? What is even more hilarious is if you read the last paragraph of the Order, you will note what I was accused of was exactly what you and other shills are doing today on the "short" side with reports such as yours.
"…The commission further found that, in connection with his efforts to bring about a short squeeze in Cedar's securities, Porcari made predictions, without reasonable basis, to registered representatives that "Cedar's" stock price would rise to a specified levels within specified periods of time. Also, the Commission found that Porcari advised groups of registered representatives to purchase specified amounts of Cedar's securities simultaneously in order to raise the market price of those securities.."
Now in my defense of that charge, I didn't tell the crybaby short seller to get caught in his own trap by shorting almost 100% of that New Issue below $3 which only had a float of around a million shares. (sounds like a modern day "GoPro" but on a much larger scale, doesn't it?) Also, to be clear. If you read the "order" I was not convicted of anything by the SEC. I simple settled after fighting it for five years and a heavy five digit legal fee for me and who knows how much tax payer money for SEC costs, neither admitting nor denying any guilt and was NOT levied any fines, fees or disgorgement.
Regarding the second "FINRA (then, NASD") allegation dated April of 1989, was a fine levied against the Brokerage Firm with many brokers of which I was formally President. The Petra situation had to do with the Firms purchase of some 8,700 shares of a stock purchased at $.30 a share (yes around $2,500 worth of stock) which did shortly go up to over a dollar a share, but collapsed back to our purchase price when the deal did not happen. We Never sold the shares we bought and ultimately wrote them off as worthless. The second part of the NASD allegation was generated based on a closing transfer audit after my partner and I sold the Firm a year earlier in 1988 and voluntarily left the Brokerage Business due to the advent of competitive Discount Brokers like Charles Schwab appearing. Since we were no longer "in the business" and had no interest in returning, we never fought the decision as we were not required to pay the fine unless we elected to return as Registered brokers.
Back to your farcical article- Your Credentials;
I noticed from your Techtonics bio that in your 15 years' market experience, you spent most of your time at Susquehanna and SAC Capital Advisors. In your report, you bring out the Companies lack of institutional following. The one point I agree with you has to do with the Companies small institutional following likely due to the Company not (yet) doing Conference Calls. Yes this is likely true since no Wall Street quality analyst is going to be the first to follow a young company that does not do quarterly conference calls or give forward guidance. HOWEVER: the Company has opened up the Annual Meeting to shareholders telephoning where questions are asked and answered. The very subject that you attempt to distort was a question that was answered at last year's call:
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.
If you know anything about emerging "Disruptive Innovations" in complex societies as the PRC has in China, you would know that any Company which initially relies on announced, but not yet completely implemented actions such as; Grants, Federal and Local tax breaks and subsidies, particularly a young company that come out of a totally unrelated business like Kandi, is going to be subject to a myriad of what seems like "never ending" changes before final long term reliable rules are implemented. Even now, while KNDI has finally received a small first installment of some $31.8 million covering only the PRC Subsidy payments for sales up to March 31, 2014, they, along with all other EV manufacturers are still waiting to be paid the Hangzhou City share of subsidies for all of the EV sold to date; pair this payment along with further PRC subsides up through Sep. 31. and you get in total, the amount now owed KNDI is likely over $100 million. The fact that the PRC did pay its first installment and also requires the local Governments to effectively "match" the PRC payments, takes out the "if" leaving only the "when" for future payments.
While most US based Companies with a primary goal of enhancing their stock price would be willing to gamble with their future by premature public speculation through Conference Calls and Guidance, the heavily China politically connected CEO of KNDI knows when to speak and when to keep his mouth shut. That is how KNDI has jumped into the current #1 slot for Pure EV's in China (#2 behind BYD when Hybrids are included) and #4 Wordwide behind Nissan, Tesla, and Toyota and #9 when hybrids are included.
"Plug-in the first half of global car sales rankings: Top Ten China accounted for two seats"
Brokerage Research Recommendations.
Once again, you prove you have not done your homework. KNDI does have at least two major China based Brokerages firms in China, Though China residents are forbidden from investing in US traded Companies like KNDI, these firms have still each given "Overweight" Ratings to KNDI.
Citi Orient Securities - KNDI Ranking "Overweight"
Shun International Securities- KNDI Ranking "Overweight"
Your Two Former Hedge Fund Employers have been Two of KNDI's Largest Holders over the past year!
But, irrespective of the fact you either didn't take the time to do a thurough research on the Company, or just chose to ignore the CEO's comment above on the call, I find it very interesting that of the few 50 institutions that have reported as being Kandi Shareholders over the past year alone, both Susquehanna and SAC are included (Go to pg.2 for SAC). While you can see from this link notorious SAC did sell the last of its position in Q2, what I find it even more interesting is that Susquehanna, your home town Philadelphia based Stock and Options Market giant is not only Kandi's current largest Institutional shareholder with some 735,000 shares, but is also one of the two Hedge funds that has participated individually to the tune of over $100 million total (including warrants) in every Kandi financing since the first in 2010, to include likely having 4.9% $30 million of the recent $71 million financing you speak of in your report.
Now; "Inquiring Minds" might just wonder. "Is it just a coincidence that the only two 'Buy Side' firms you worked for in your short career on Wall Street, happened to have had enough confidence in the Company to be recently reported long shareholders of Kandi; or was this bogus report just a way for you to lash back at them for laying you off?" (Based on the poor quality of work you did on this KNDI slam based on "other peoples" antiquated and debunked attacks and maybe some disgruntled former Geely employee, don't for a second think that any intelligent investor would believe that you left a "posh" life as a Big Company Wall Street analyst with your "Bachelors of Engineering" degree to start your own research firm (Techtonic) to sell your independent research except to short sellers that are trapped and will pay for any trash, true or otherwise to be published)
Karl Richter - Portfolio Manager?
?Karl K. Richter is the founder of Tectonic Investments LLC. He has fifteen years of investment experience, including thirteen years investing in long/short equity fundamental hedge fund strategies.
Before founding Tectonic, Karl was a senior portfolio manager and founding partner at AlphaOne Capital Partners. Previously, he had eight years of experience as a portfolio manager and fundamental research analyst at Susquehanna International Group and SAC Capital Advisors. He started his career in equity research at Robertson Stephens and Lehman Brothers in San Francisco.
Education:
Massachusetts Institute of Technology, Bachelor of Science, Mechanical Engineering.
KNDI's Auditor
Though KNDI has been publicly trading in the US since 2007, only in the past year did it become recognized enough to break though the $250 million mini-micro-cap barrier. They have used the same auditor for some six years now and have had no problem arise with the SEC regarding their auditor as is likely evidenced by SEC "Effective" rulings on more than a half dozen registration statement; (three so far this year). Which BTW, should likely give a "hint" as to the direction of the SEC Fact Finding Investigation you pointed out in your report that was first published in Kandi's last years 10k.
KNDI/Geely JV- Your Comment is a Joke, Right?
It must be because it is not backed up by the actual facts. However, it is interesting how you painted the "picture" of how Geely "passed off" an "idle factory" to the JV. But wait! Isn't this what Toyota, Tesla's early "Strategic Partner", did with your beloved TSLA's one and only manufacturing facility? However, what you forgot to mention was a year prior to the JV (not KNDI, but the 50-50 JV) taking over the Shanghai Maple plant, Kandi sold their new Changxing EV plant to the same JV.
Kandi Technologies Completed China's First Full Scale Production and Assembly Line Specialized for Pure Electric Vehicles
"…This new production line combines the advanced production equipment and manufacturing technologies. It also integrates the robust manufacturing concepts and experiences of Kandi technologies and its JV partner, Geely Auto…
Mr. Hu Xiaoming, Chairman of Kandi remarked, "With the unprecedented enthusiasm and unwavering support from all levels of government leaders, Kandi Changxing will take full advantage of the technology strengths and expertise of Kandi/Geely Auto in the EV area to develop pure electric vehicles that consumers can afford to buy and drive while adopting practical business models to provide reliable and convenient services to our customers. Carrying the great expectation as well as the social responsibility, we are confident that Kandi will contribute its part in building the green economy in China."
Mr. Yang jian, Vice Chairman of Geely Automobile Holdings Limited congratulates the completion of this new production and assembly line and commented, "We have full confidence with our partnership with Kandi to further expand in the electric vehicle market. With years of exploration, Geely has accumulated rich experience and technological reserves in R&D and marketing of electric vehicles. We believe that the pure electric vehicle industry will witness a great prospect of remarkable growth in the future".
Or how about this joint announcement where Geely sent their Founding VP of Marketing who took Geely from nowhere to the #1 passenger car manufacturer in China to take over the same responsibilities at the JV. (funny how Geely's sales and stock price cratered starting about a month after they lost this SVP to the JV)
Zhejiang Kandi Electric Vehicles Co., Ltd. Appointed Mr. Liu Jinliang as Vice President of Sales & Marketing
"…Zhejiang Kandi Electric Vehicles Co., Ltd. ('the JV Company') appointed Mr. Liu Jinliang as the Vice President of Sales & Marketing for the JV Company, effective immediately.
Mr. Liu Jinliang joined Geely Auto Co., Ltd in 1995, and from 2005, Mr. Liu was in charge of the sales for Geely Auto. Mr. Liu became the Vice President of Geely Auto Holding Group ('Geely') and General Manager of Zhejiang Geely Holding Group Automobile Sales Company Limited in 2007.
Mr. Hu Xiaoming, the General Manager of the JV Company, comments, "The appointment of Mr. Liu Jinliang, one of the most seasoned and experienced sales and marketing senior executive in Geely, to become the VP for Sales and Marketing of the JV Company, demonstrates Geely's great support and focus on the new energy vehicles and the JV Company. We are confident that with Mr. Liu Jinliang in charge of sales and marketing, the JV Company will achieve great development in the new energy vehicle business."
Mr. Li Shufu, Chairman of Geely Auto Holdings Ltd., comments, "New energy vehicle is the strategic business sector for Geely. After years' preparation and accumulation in technologies and marketing, especially the cooperation with Kandi, our new energy vehicle business has entered into a fast development lane. We believe that Mr. Liu Jinliang will utilize his experience and expertise, as well as deploy his resources and take action to make a break-through for the sales of the JV Company's new energy vehicles."
You claim Geely has not transferred any of their auto technology to the JV. Once again, you didn't do your homework. Geely and KNDI jointly developed the EV version of Geely's #1 selling ICE car the Panda. This is four door EV designated the SMA7001BEV that is being used in both the carshare and long lease programs.
And let's not forget this comment from a Dec. SEC 8K filing"
"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."
Let Call a "Spade, a Spade".
KNDI over the past four years, has been the target of more than two dozen attack articles such as yours by a half dozen sources. ShareSlueth alone (whom you credit with giving you most of your four and five year old data along with the personal attack on me) has published 13, with a 10 going back to when the stock was trading between $2.5-4.5 a share. During that time the reported short interest has grown from a reported one million shares or around 4% of the float, to the current 7 million shares or close to 30% of the float. (About the same percentage TSLA was when it finally broke out through $50 a couple of years ago)
In all of those articles, never once has any writer, (to include yourself in the current piece) ever accused KNDI of even doing anything illegal, let alone accuse them of "Fraud". All that is ever attempted is to discredit by insinuation, distortion, innuendo, mis and dis-information in order to "raise doubt" in the minds of intelligent investors to sell their stock to let the shorts out of their trap. Why has the short continued to go up along with the stock price? IMO, because of these articles. They draw attention to the Company forcing inquisitive investors to do a little research. Each day more and more intelligent investors who take a little time to truly research the Company in current light; and take the easily attained massive information proliferated all over the China Media (by using Google Translator, search words Kangdi Electric Vehicles); pair it with the "common sense" that tells China with its very cheap electricity is the one Country that has no choice but to use EV's to help alleviate their pollution problems. And the answer is overwhelmingly simple: Investors would rather be long than short KNDI.
In this current time of Stock Market turmoil and unrest, Nothing, I repeat, Nothing, happening anywhere in the rest of the World is going to negatively affect the growth of EV's in China or KNDI specfically. KNDI, with its miniscule $500 million Market cap and very strong cash heavy balance sheet increased by the recent $71 million $17.20 share financing; is going to likely increase its incredible business momentum in its trillion dollar potential sector in China. Even in catastrophe, the last stimulus that the PRC dare cut is the one to help cure their living environment. Air pollution already has the Government on the edge of Anarchy.
Mr. Richter, it is your opinion that KNDI stock price should be somewhere between "0" and $7, you are certainly entitled to your opinion.
It is my opinion that in the next few years KNDI will have a three digit share price. You would not argue that I am entitled to my opinion.
As ridiculous as it might sound in attack articles about a multi-million share a day volume NASDAQ Company such as KNDI, as mentioned above, I have been personally accused of over-supporting the stock. This is not true. I could care less what the stock does on a day to day basis. However, I proudly admit I have been extremely supportive of the Company and its brilliant Management. I have been in KNDI continuously for over seven years and expect to be holding a position on my last days on earth. At age 67. I have been in the market since 1974 when the Dow traded as low as 576 and watched the birth of most of "today's" tech giants without being smart enough to participate.
IMO, at this early stage, KNDI, while still legitimately speculative in the eyes of many, has potential that far exceeds any of those missed passed opportunities at equivalent age levels. I could care less who buys or sells the stock. It's their money and they can do with it what they want. My writings are only to help "Level the Playing Field" and not passively allow investors to sell or not partake for the wrong reasons.
Disclosure: The author is long KNDI.
Don't want benefit of the doubt, you should know with a high measure of certainty. But it takes a strong effort to find that level of truth.
It doesn't surprise me either.
I've often been the target of such nonsense.
I'm a strong, vocal, prolific opponent, of downside positions based on leveraging cash, and utilizing manipulative algorithms on high speed computers, to make profits at the cost of good honest hard working folks. I don't particularly care for folks that like to ride their coattails of those naysayers.
I'm not the Boogie man. But keep looking.
Change suspicious to cautious, and rightly you should be. 1 stock in US has caused more wealth destruction than all of the China stocks combined.
http://en.wikipedia.org/wiki/Lucent
BULL