ZAP (fka ZAAP)

[WOLDUMAR]

http://seekingalpha.com/article/255860-revisiting-kandi-why-i-remain-confident-in-this-stock?source=yahoo

California based ZAP is probably a company that most don’t realize is now a possible “contender” in the EV space, both in the U.S. and China. But for those who do, I suspect they don’t truly realize how expensive this entry was. I can’t imagine how this stock can currently be trading with diluted market cap of $385 million. And this is significantly down from the over half billion market cap it had in early January, right after it completed and announced a multi-part macro private share placement at around $.24 a share with a lot of $.25 warrants totaling some 200 million shares. The placement was used to raise $30 million to buy 51% of a Jonway Automobile a Chinese gas powered carmaker who had supposed revenues last year of around $77 million.
As stated in its Jan. 25 PR, “With ZAP’s electric vehicle (EV) technology expertise and international experience, the combined company intends to build the necessary production platform to address the Chinese EV market,” the company plans on taking its 16 years as a “pioneer in the electric vehicle industry since 1994, engaging in the design, development, commercialization and distribution of 100% pure electric vehicles and power systems,.. (full article)” and teach this Chinese company how to convert its gas powered cars to EVs. Who knows? After generating some $4 million in revenues in 2010 and accumulating a deficit of $143 million over the years developing its“expertise”, maybe the company finally learned a secret or two to teach the Chinese about EVs.