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CGDI - Think all of their malls fell into a sinkhole?
KNDI - Disappointed, sure, BUT -
I don't like my shares dropping but if your only in this for the short run, don't panic. In the long run this, theretically, reduces my earnings by 20% but not necessarily. We are talking about running a business here and you need to view it that way. They need money. Why? To make money for themselves and YOU.
- Takes money to make money.
- With the current product and the governemnt support on many levels they are in a 'sweet' spot.
- They have a facility that can put out lots of cars but you need to buy/prepay for many parts.
- They can't wait until a few small sales provide cash and they loose their current advantage.
- What advantage? Anyone can make a small car but KNDI did it first, are ahead, and should not give up the lead.
- They need sales personnel to hit those government agencies in all of the ever growing pilot cities.
- They need dealerships, either owned or franchised.
Overall, they must not give up the advantages they currently possess and strike while the iron is hot.
Disappointed today, yes, BUT -
I don't like my shares dropping but if your only in this for the short run, don't panic. In the long run this, theretically, reduces my earnings by 20% but not necessarily. We are talking about running a business here and you need to view it that way. They need money. Why? To make money for themselves and YOU.
- Takes money to make money.
- With the current product and the governemnt support on many levels they are in a 'sweet' spot.
- They have a facility that can put out lots of cars but you need to buy/prepay for many parts.
- They can't wait until a few small sales provide cash and they loose their current advantage.
- What advantage? Anyone can make a small car but KNDI did it first, are ahead, and should not give up the lead.
- They need sales personnel to hit those government agencies in all of the ever growing pilot cities.
- They need dealerships, either owned or franchised.
Overall, they must not give up the advantages they currently possess and strike while the iron is hot.
Oops - CNBC talking about China shells/reverse mergers.
KNDI - Yep a shock -
But all I can think of is moeny is needed for dealerships in all of those pilot cities. Needed for sales. And with the government subsidy, almost give aways of the cars.
KNDI - up 10% - EOM
KNDI and government subsidies -
On Firday I was unsure of the battery capavity and how much subsidy would be available.
Battery specs for the KD5011 are:
- Lithium iron phosphate battery, type: IFP152/40/256,
- the total voltage: 73.6V, total capacity: 300Ah
So that results in a full 22 kwh capacity which is good enough to get the max. subsidy of 60,000 Rmb from the Central Government and 60,000 Rmb from the Hangzhou Government in case of private purchase of the KD5011
Based on this the car is essentially free. Also the local government provides 5 year free battery use. This is currently planned to go on for at ltast 3 years. Don't know if this will change but it will get a lot of cars on the road and attention.
KNDI (Part 2)
For this subsidy program Hangzhou invests 860 million Yuan and targets private purchase of 20,000 New Energy Vehicles before the end of 2012.
Based on information from Mr. Hao Zhiyi, Deputy Director of Hangzhou Municipal Economic Commission this program is now implemented and allows for the following subsidies that are specifically applicable to the Kandi KD5011EV, in consideration of Kandi’s business model “Separate purchase of the EV and leasing of car batteries”
a) a subsidy that allows the buyer of a KD5011EV to use the (non lead-acid) battery free of charge for a period of 3 years, or alternatively 60,000 km
b) a maximum subsidy of 60,000 Rmb when purchasing a KD5011EV
c) an extra subsidy of 3000 Rmb per KD5011EV in case of private car fleet purchase of minimum 10 cars.
d) an extra subsidy of 3000 Rmb per KD5011EV that is purchased to replace an old car.
According Mr. Hao Zhiyi the customers will be able to obtain cumulative subsidies provided by the Central Government and Hangzhou Government of up to 123,000 Rmb for Pure Electric Cars!
Some extra news about further subsidies from the Central Government:
Xu Changming, head of information resource development at the State Information Center during an interview with China Business News stated:
“As electric car charging stations will be installed at parking areas, subsidies will be provided to the State Grid Corp of China and China Southern Power Grid. Users of new energy cars will enjoy preferential policies when paying road tolls, parking fees and charging fees.
Moreover, manufacturers of new energy cars may receive subsidies if they apply new technologies to the production, he added.”
http://www.chinadaily.com.cn/m/hangzhou/...
Further important news:
Mr. Liang Nie, Head of the Hangzhou Electric Power Bureau stated his company’s commitment to support the Hangzhou Government New Energy Cars promotion efforts:
a.o. lay-out and construction of a battery charge and quick battery replacement station maze of 1km x 1km which would allow customers to easily reach a station and have a battery swap done within 1 minute!
Before the end of 2012 Hangzhou intends to complete the construction of:
4 centralized charging stations,
38 de-centralized charging and quick battery replacement stations,
145 parking areas with a total of 3500 charging poles.
Does the above information make it clear why Mr. Hu decided to have Corporate Offices in Hangzhou?
KNDI - This shows the degree of government support for EVs and specifically KNDI: (from Yahoo, Part 1)
As promised hereby an overview of what is available as subsidies from the Central and local Governments:
Applicable to the Kandi KD5010EV:
Central Government Program A: “ Public services, energy conservation and new energy vehicle demonstration and extension work – 20 pilot cities“
Ref: http://translate.google.com/translate?hl...
Introduced in Feb 2009 by the Central Government this program provides subsidies for purchase of New Energy Vehicles by Public Service Departments (Postal, State Grid, Police, etc..) in 20 pilot cities, including Hangzhou.
For purchase of Pure Electrical Cars (BEV) the subsidy amounts to 60,000 Rmb.
The “Initial sales” of 60 KD5010XXYEV to the Hangzhou Postal Service were sold under this program at a price of 68,000 Rmb /car
There isn’t really any cap on the number of cars for which a subsidy can be granted and the program will run for another 5 years or more!
The subsidy is restricted to New Energy Vehicles that are certified and listed in the Ministry of Industry and Information “Energy-saving and new energy vehicle demonstration application of recommended models directory”
Applicable to the Kandi KD5011EV:
Central Government Program B: “Subsidies for Private purchase of New Energy Cars in 5 pilot cities”. This is the subsidy program that was referred to in the PR of last Friday:
http://finance.yahoo.com/news/New-Kandi-...
This subsidy program was introduced early June 2010. If you want more details go to:
http://translate.google.com/translate?hl...
For this program Hangzhou has obtained a commitment for 1.2 Billion Rmb from the Central Government.
Applicable to the Kandi KD5011EV:
Hangzhou Government Program: "Hangzhou city subsidies for private purchase of new energy vehicles pilot implementation plan ".
This subsidy program was introduced at the end of August 2010 and is now being implemented. If you like more proof from Hangzhou’s Official website go to:
http://translate.google.com/translate?hl...
I'm aware that no one uses this KNDI site. The best place for KNDI news and post is at Yahoo. I know you find that impossible to believe but it is true. Corstrat over there is the leader of an investment group on KNDI with LOTS of shares. He visits China and keeps in contact with the CEO. But here is a quickie on KNDI based on the Last PR which was a game changer for the company.
KNDI - What might be the market -
For a two person, plus child, electric car selling for ~ $3,000 after a government subsidy of $6,000, with an added lease cost on an advanced LiFePo4 battery which will go 100 miles, and the battery can be swapped in 90 seconds at the cost of the electicity in the battery, at governement constructed battery 'changing station'? In addition this is in a country that hates the pollution due to its negative impact on the countries image. Also the company partner is the National Grid Corp. which provides 88% of all electricity in the country. Car is approved for driving on all roads and for sale in the 'current' 20 pilot cities. Government also supports the subsidy for government agencies like the postal system (300,000 vehicles) and Grid Corp. meter readers (number of vehicles unknown). Company also gets a percentage of the battery changing fee since it is their patent and concept.
Company has an automated factory, paid for, to produce 100,000 per year. Current margin on the $9,000 vehicle is 24%.
When they reach capacity in that plant they will be making ~ $8.00 per share. I'll wait. Also, I hope the shorts don't follow me. As for now there is only 1M shorts, 8% of the float.
'A life of its own'
Yes the pattern here is untreal. Naked short selling, naked in my opinion, is uncontrolled by the SEC. In the long run CCME will be at the 'efficient market' price but I might have died of a heart attack by then or lost all my money chasing the irrational rises and falls caused by the shorts at their whim.
So, early this week I took my toys and bought KNDI. Pardon this OT but here is my CGS post on it after the Friday pm PR:
KNDI - What might be the market -
For a two person, plus child, electric car selling for ~ $3,000 after a government subsidy of $6,000, with an added lease cost on an advanced LiFePo4 battery which will go 100 miles, and the battery can be swapped in 90 seconds at the cost of the electicity in the battery, at governement constructed battery 'changing station'? In addition this is in a country that hates the pollution due to its negative impact on the countries image. Also the company partner is the National Grid Corp. which provides 88% of all electricity in the country. Car is approved for driving on all roads and for sale in the 'current' 20 pilot cities. Government also supports the subsidy for government agencies like the postal system (300,000 vehicles) and Grid Corp. meter readers (number of vehicles unknown). Company also gets a percentage of the battery changing fee since it is their patent and concept.
Company has an automated factory, paid for, to produce 100,000 per year. Current margin on the $9,000 vehicle is 24%.
When they reach capacity in that plant they will be making ~ $8.00 per share. I'll wait. Also, I hope the shorts don't follow me. As for now there is only 1M shorts, 8% of the float.
KNDI - Yes, 20,000 is conservitive.
Depends how fast the sales go but one thing we know for sure, there will be no shortage of production capacity. So let the orders begin. I only look a the max. production of 100,000 per year and an EPS of ~ $8.00 and an appropriate PE. I believe that even Cramer will understand selling cars since he seems not to comprehend TVs in busses.
My CCME money went to KNDI this week. Now I can only hope that the shorts don't follow me.
KNDI - What might be the market -
For a two person, plus child, electric car selling for ~ $3,000 after a government subsidy, with an added lease cost on an advanced LiFePo4 battery which will go 100 miles, and the battery can be swapped in 90 seconds at the cost of the electicity in the battery, at governement constructed battery 'changing station'? In addition this is in a country that hates the pollution due to its negative impact on the countries image. Also the company partner is the National Grid Corp. which provides 88% of all electricity in the country. Car is approved for driving on all roads and for sale in the 'current' 20 pilot cities. Government also supports the subsidy for government agencies like the postal system (300,000 vehicles) and Grid Corp. meter readers (number of vehicles unknown). Company also gets a percentage of the battery changing fee since it is their patent and concept.
Company has an automated factory, paid for, to produce 100,000 per year. Current margin on the $9,000 vehicle is 24%.
KNDI - Up 15% -
Going to hit 1M shares vol., 4X normal for a PR put out 2+40 min. prior to closing.
Do your research this weekend.
KNDI - Li ion battery model + subsidies -
http://finance.yahoo.com/news/New-Kandi-EV-Model-Approved-iw-1077293329.html?x=0&.v=1
KNDI now has a LI ion battery model of its 100 mile vehicle and it is availavle for the maximum government subsidy. In the future I also ecpect the lead acid will be available (cheaper battery) for the subsidy.
No limit on the number of naked short shares. Especially since no one, certainly not the SEC, gives a damn about pursuing enforcement.
Shorts can still play, if brave, until the dividend day is declared and this can't be done until after the 10K in late March. So let's see how brave they are.
for the shorts it's ~ $0.5M total -
If they are holding at the time of issuance.
I'm no expert but I watch the tape on only two stocks and this is the short trading pattern. Several 100 share his, followed by a 400, then maybe a 1200, them more 100s. It's a shorts computer generated pattern. All of course on the current bid or below.
CCME - Yes, big risk by the shorts.
That is if this IS shorts. As said earlier, a lot of this is trading because the stock does this all of the time.
However, I beleive that the company has several possible releases that can pop the stock to counter these ocassional downtruns. I beleive everything swampdonkey:
"Divi - Its still a few months away as they have another board meeting to discuss the finer details at the end of the year
I would still say late Jan / Feb.
In the meantime we have 2011 guidance which will be conservative and announcements very soon on the new initiatives that they are working on."
Other than the buyin by Jacky recently, there are these possible PRs which could be done almost weekly, therefore it is dangerous to be out of CCME, short it, or trade too severely. Possibles:
New 2010 guidance
New contracts
New inititives
New analyst coverages and pps projections
Dividend announcement
I don't think there is any worry here.
The moderators here rule with an iron hand. If they suspect the type of things that go on at Yahoo, they warn and then, if required, ban them.
Yes, big risk by the shorts.
That is if this IS shorts. As said earlier, a lot of this is trading because the stock does this all of the time.
However, I beleive that the company has several possible releases that can pop the stock to counter these ocassional downtruns. I beleive everything swampdonkey:
"Divi - Its still a few months away as they have another board meeting to discuss the finer details at the end of the year
I would still say late Jan / Feb.
In the meantime we have 2011 guidance which will be conservative and announcements very soon on the new initiatives that they are working on."
Other than the buyin by Jacky recently, there are these possible PRs which could be done almost weekly, therefore it is dangerous to be out of CCME, short it, or trade too severely. Possibles:
New 2010 guidance
New contracts
New inititives
New analyst coverages and pps projections
Dividend announcement
OT: Solar and wind is the future ? -
The future is something you don't know of and it is far off due to the snail pace in the nuclear area. And it is ???? Thorium nuclear power Can't make money in it unless you have a long, long time to profit. For info go to Lightbridge: http://www.ltbridge.com/technologyservices
Lightbridge would convert current power plants and new plants to use thorium based control rods. The US has lots of thorium, the residue has almost now plutonium, and therefore no nuclear plorificlation problems. Some interest in the US but likely that the first proof of a full scale operation will be in the middle east. Our 'government energy experts' (forgive the term) will see the wisdom in maybe 2050.
And sorry, it's not Chinese.
A resonable thing for the company.
KNDI more - BTW, no car orders have ever been reported, government or private. There are city subsidies for private cars but only ~3000 per city. The importance of the partnership with the National grid Corp. is that they want the battery changing concept over the battery charging concept to put recharging on grid power surplus at night. They also could be a big goverenment customer for the meater readers.
OT: New RF-4C photo. Korean aircraft with either an actual or practice utility hydraulic failure. Clues are 1/2 flaps versus full, hook down for approach end barrier engagement, fuel receptical open for gravity flow.
KNDI - From the Yahoo board today discovered facts on government subsidies for lead acid batteries in the KNDI electric vehicles. As for now we are waiting and expecting approval for subsidies for private consumers. The consumer price would drop from $6000 + battery lease cost. With a subsidy it would be $3000 + battery lease cost. This obviously would be significant. However, a new fact found today was that lead acid batteries with a subsidy do apply for government agencies. Already 20 cities have approval to procure such vehicles. They don't need the governemt construction of public changing or charging stations as the government agencies have facilites at their locations. The size of the potential governement procurement (postal and electric grid meter readers) is so large that the private consumer subsidy is hardly important. They sell the special configured vehicles for ~ $10,000 and at a 25% margin. Total postal vehicles in the country are 300,000. Meter readers unknown. If they just max. out thier current factory capacity of 100,000/year the numbers and earnings are significant. They also have other buildings for increased capacity.
Annual meeting is next Friday in China. I'm expecting news. Watch this company closely. For percentage increase, I like it better than CCME and that's saying something.
BTW, yes I know corstrat is a pumper and is part of a big group of investors, but potential is potential and facts are facts.
Yes, true. Even though they have a PE of 100 and ours five. But they have the reputatuion.
Now we have the fight for 14.99 or 15.01, as it makes any difference.
OT: Watch for this -
Obama is setting himself up to be the economic savior, but he knows that congresional democrats will not support him. Therefore, there will be a fight over taxes, they will not be any deal, and taxes will go up. Obama can then blame congress, praise himself for not wanting it to happen, and continue to fight over a tax structure all next year.
Regan cut taxes and said; "Now they will have to cut spending". Obamas strategy is the opposite (although never publically stated); 'Spend, spend, spend, and then they must increase taxes'.
Anyway, as this approaches 31 Dec, watch your money.
That 'should' eat up current shorts -
If it isn't withdrawn before exhausted.
If the shorts are alive -
True, the topic will be alive.
It is the plaything of shorts -
Yes - Forget that phrase -
Comment provided by me and 'I am not a crook'.
Someone took their daytrading profit at the end: 17,745 @ 16.51. A healthy piece of change.
Now for MS on Tuesday and GS on Thursday. Too, too much to hope for.
KNDI - The province subsidy for only 3,000 cars is minor although helpful. But the extension to Lead acid batteries would apply to all of China, and as it is now, last for three years. They have a plant capacity (paid for palnt) of 100,000 cars/year. I want them to use it. I think A Better Place CEO said on CNBC Friday that they were totally out of China. For small cars, now, KNDI is it. Of course others will get in in time. Maybe Warren will add KNDI to augment BYD.
And for corstrat, he does know the company but I think he has done about all he can to promote the company. And it has been appreciated. His recent trip to China and the plant will have some interesting data for his next SA article. But we need the subsidy approval which I believe will come unless the government has some 'special interest' in LiFePo4 batteries.
KNDI (for possible 60 day double) - If the goverment approves subsidies for electric vehicles with lead acid batteries. Why they were not included in the original subsidy announcement I don't know. Yes we know LiFePo4 batteries are the proper, and hi-tech, batteries in the long run, but they will be in short supply for years and years. With the subsidy, a KNDI auto will cost a consumer ~ $3,000 and the company gets an equivelent amount from the governmenet. The customer leases the battery and KNDI uses a battery replacement station (built and paid for by a government program) to swap a battery faster than you could put gas in one. It also allows a slow charge of the battery (leading to longer battery life) and doesn't tax the power grid during the high load of the day. KNDI is in partnership with the National Power Grid Corp. which provides 90% of all electricity. I think the government will approve the subsidy especially with the influence of the Power Grid Corp.
CCME - What, another run up ?
CCME - This second surge is amazing and unusual.
December 6, 2010 9:17 AM EST
Global Hunter Securities upgraded China MediaExpress (NASDAQ: CCME) from Accumulate to Buy. PT $24.
Global analyst says, "CCME shares dropped significantly last week, which we believe was unrelated to the fundamentals of the company. CCME recently added 2,000+ buses to its inter-city and airport bus network and we expect continued expansion going forward. The company's strong balance sheet should support its growth strategies, through network expansion and other value-added services. Shares are currently trading at 5.2x our FY10 EPS, and only 3.7x if backing out the $170MM net cash ($4.40/share). We believe the valuation has become more attractive and therefore upgrade our rating."