Why Kandi Technologies Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Kandi Technologies (NASDAQ: KNDI  ) were busting loose again today, jumping as much as 24% before finishing 15% as investors continued to bid the stock up on enthusiasm for its recently announced increase in electric-vehicle sales. The stock has now gained close to 50% in just two trading sessions.

So what: Last week, Kandi said it expects to deliver 2,800 electric vehicles this quarter, a strong improvement from just 3,915 deliveries last year. Considering the gains made by Tesla Motors stock this year as its business model has proved viable, perhaps it's no surprise to see another electric-vehicle maker's stock soaring. An additional factor that adds huge upside to Kandi's potential is a recent joint venture with Geely to launch a car-sharing service in the city of Hangzhou that could include more than 100,000 cars.

Now what: With enormous upside potential in the EV industry and plans for projects like the 100,000-strong car-sharing program, it's easy to see why Kandi shares are flying. The company is not currently profitable, but future expected earnings go a long way in the stock market, and electric vehicles are just the kind of nascent industry that could bring huge returns to Kandi in 10 or 20 years. That's reason enough for me to consider investing.

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Read/Post Comments (2) | Recommend This Article (1)

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  • Report this Comment On December 30, 2013, at 6:02 PM, Tgar13 wrote:

    Company has been profitable until

    Cap Ex for current EV production and

    Build out of Car Share Towers

    However recent loss was for one quarter only

    Kind of silly to say this company is not profitable

    Revenues are increasing significantly

    They are a loaded spring

  • Report this Comment On December 30, 2013, at 6:33 PM, Tgar13 wrote:

    Agree this is a 10 year story but short term

    Appreciation in Earnings per share is near

    Certain as our increasing revenues

    Seems that they are a First Mover and have

    The backing of Geely.

    Again this is a right idea in the right place

    At the right time. They have a dedicated

    And charismatic CEO who is well connected

    In the communist party

    If they sell 20000 cars in 2014 (that have the capacity for100000) that would, in addition to

    Legacy business lead to an EPS of close to

    One dollar - with a PE priced for Growth

    Do the math!

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