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KNDI Investment discussion

Discussion in 'Off Topic' started by kevin99, Sep 23, 2013.

  1. kevin99

    kevin99 Banned

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    #1 kevin99, Sep 23, 2013
    Last edited by a moderator: Sep 24, 2013
    As a speculative play, I think KNDI is attractive. It is the most relevant stock with the theme of "EV in China", which I speculate will have a wide ride in the next 3-6 months.

    I've been building up the position and it is doing very well. It is sort of validating my approach how to start small on a speculative stock and go big until proven right. The same approach I employed with TSLA. It is never a big bet and then wait for one year to see if you lose it all or get 10X return.

    In fact my KNDI position is doing too well that I am guilty not to devote enough time to take better advantage of it.

    In my test account with OptionHouse, I have seed money of $5000, which I grow to $50,000 by TSLA within 2 months. Then I put the money to KNDI and the account value is $85,000 now.

    KNDI position.jpg

    Since it is a small account, buying call is all I did.

    In my main account, I did a lot of combination by selling OTM put, Selling In the money put, and buying calls as well. All of them did very well for Sep. August was not so good but it is a small loss. Again go big until proven right.




    [Mod Note: This thread carved out of Short-Term-TSLA-Price-Movements]
     
  2. Convert2013

    Convert2013 Member

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    KNDI is a good buy. Smart thinking.
     
  3. gene

    gene Active Member

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    Kevin, I just gave KNDI a try, I was dying to buy something today.
     
  4. kevin99

    kevin99 Banned

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    #4 kevin99, Sep 23, 2013
    Last edited: Sep 23, 2013
    Owoh gene, start small until proven right!

    I don't know what you did by 'giving a try', :) Did you buy shares? Selling In The Money put is probably a better trade at this time, which I did earlier today. i.e. I sold Oct KNDI @7.5 for $1.4 today. That means i will lose money only if it drops below $6.1, that is the margin of error I've been talking about.

    - - - Updated - - -

    I think it is important to remember what was your thought process at that moment 2 years ago, and not right now after all the facts have been played out.

    I suspect 2 years ago most people are worried about Tesla will go bankrupt, no matter how good the cars they are producing. They will be burning cash too fast that they wouldn't be able to make it profitable and then go under, the sort of doom picture the naysayers been painting.

    The only dependable evidence did not come until Q4 ER 2012, in which Elon declared Tesla will have a profitable quarter in Q1. Amazingly most people does not pay attention, or not willing to believe that. Perhaps when people in the down mode for too long, it takes more than a declaration to shift the sentiment.

    On the contrary, I was fortunate not to be bothered by the doom theory as I was just getting started. Having test drove the car gives me a lot of confidence. Then all signs are coming together this is one epic storm in the forming.

    - - - Updated - - -

    Add them to your ignore list!
     
  5. kevin99

    kevin99 Banned

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    #5 kevin99, Sep 23, 2013
    Last edited by a moderator: Sep 24, 2013
    Oh my god gene, you just made a great trade! You certainly did better than me in one hour. It is above $7 now.:). You do get something exciting to watch now...

    In the longer run, like in 2 weeks or a month, I will probably still win the race... :)
     
  6. kevin99

    kevin99 Banned

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    Holy smoke, KNDI is already $8. Gene you certainly had a great trade.

    My account value rise from $84k to $140k in one day! It is an account intent to test Optionhouse's execution, but the money is as real as any $140k.

    KNDI position2.jpg





     
  7. borat99

    borat99 Member

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    Yeah, is this another TSLA or what? I added a position yesterday after Gene said he jumped it. Great stock pick! Thanks!
     
  8. sleepyhead

    sleepyhead Active Member

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    I would be taking my profits right about now if I were you.
     
  9. hoang51

    hoang51 Member

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    KNDI is quite interesting over the past week. I'd probably buy puts just for the heck of it. It shot up too much and is screaming for a pullback before shooting for the moon again.
     
  10. kevin99

    kevin99 Banned

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    It is a small account of mine. I don't have the energy to time it out and in. Besides, I am going for double digit, and I have Dec and even next year for it. Call me greedy, but the "EV in China" theme is too big to count the money. Let the Tesla storm play out in China, and carry all these little guys with it.
     
  11. sleepyhead

    sleepyhead Active Member

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    Kevin - Can you PM me some reading on KNDI? One or two good articles on it would be sufficient. I don't really have the time to start studying a whole new industry.

    What kind of growth is KNDI expecting? Are their cars any good? Do they need to raise capital, etc.?

    Whenever you think is a good time. I started positioning myself for Q3 a week ago when TSLA was consolidating in the $160s. I will position myself further during the next pullback. It is a constant ongoing theme for me, and my strategy is very flexible depending on the movements of TSLA.
     
  12. Convert2013

    Convert2013 Member

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    Kandi is no Tesla for sure. They make small electric cars for China's home market (which is huge) and is the largest EV maker in China. Considering the massive subsidies just announced by the Chinese Govt for EVs (don't forget their pollution problem), KNDI is a play for sure in my mind... they will likely enjoy the EV wave.
     
  13. kevin99

    kevin99 Banned

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  14. gene

    gene Active Member

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    Thanks Kevin, I wish I had bought much more!
     
  15. Mario Kadastik

    Mario Kadastik Active Member

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    Well I opened a very minor position in KNDI (or well am waiting for the orders to complete) by selling the 7.5 Jan'15 put for 3.55 and buying the Jan '15 7.5 call for 2.5. This way I'm $1 in credit meaning it's as if I had bought KNDI at $6.5 for me to come net zero, max downside is $650, upside however is unlimited at this point. I've started with a really small position and plan to monitor how it goes possibly adding as I go along :)
     
  16. bhuwan

    bhuwan Active Member

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    Thanks for the info Kevin. I'm hoping to get in shortly.
     
  17. tftf

    tftf Member

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    #17 tftf, Sep 24, 2013
    Last edited: Sep 24, 2013
    I would invite everyone to check the numbers (and read up in general on auditors, ownership structure and the history of Chinese reverse mergers listed on US stock markets) before investing real money in KNDI.

    A starting point may be here, also includes links to other sources for further reading:

    Kandi Technologies: Weighing The Evidence - Forbes


    It may all be true, but it may also be too good to be true...I don't know, I would just be extra careful.

    PS: And just to be clear, I have no position in KNDI nor won't touch this stock long or short.
     
  18. gene

    gene Active Member

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    I don't have the nerve to put substantial money into KNDI yet. I only know of it because Kevin mentioned it yesterday and I was itching to buy something! I only bought a few thousand dollars worth. Maybe there will be an opportunity for more tomorrow with a pull-back.
     
  19. borat99

    borat99 Member

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    I bought calls yesterday when I saw your post saying you just picked up some. Got nervous this morning and closed the position with a 64% gain. No complains. I may get in again when things are calmer.
     
  20. Bonken

    Bonken Member

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    I have been holding a small position in KNDI since they were trading around $3,50 mark. It is very speculative as it is hard to get a real understanding of the chinese market and what information is actually true and what is just completely made up. However, if the information is somewhat true and they can achieve only half of what they say they will, this will be an explosive stock within the next couple of years and I am willing to bet a small portion of my portfolio on it as the reward could be tremendous.
     

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