Why Kandi Technologies Group's Shares Popped
Jun 17th 2013 7:34PM
Updated Jun 18th 2013 1:00AM
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 Group jumped 28% today after the company announced new charging stations.
So what: The company plans to build 30 "pure EV smart vertical parking and charging facilities" in Hangzhou City by the end of the year. The company plans to then sell 5,000 to 10,000 pure EVs in the city within a year after that -- big plans for a very small company that makes primarily ATVs and go-karts.
Now what: These are big plans for a small electric vehicle player and I'd be very cautious buying into the hype. The company had just $14.7 million in sales last quarter, which was only up slightly from a year ago, and I want to see profits and more history before jumping in. A123 Systems came with similar grandiose plans a few years ago and investors who bought in ended up losing their shirts.
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