Yesterday, Andrew Keene Tweeted that he may be starting to like KNDI as a speculative play. Andrew, welcome to the KNDI bandwagon. I am very bullish KNDI. Last December, I chose KNDI as my favorite stock play for 2014. It is up almost 65% since then.
I still like it and think it will go much higher. I own both shares of stock and call options.
KNDI is an electric vehicle company in China, and has been soaring. Here are some important KNDI points to consider:
1. In his State of the Union last month, China’s Premiere Li stressed fighting smog.
2. When the Chinese government wants to do something, it does it. There is no political stalling like the US.
3. The Chinese government provides subsidies to KNDI customers. These were just enhanced and extended, and they could increase further.
4. There are many enormous cities KNDI is not yet in.
5. KNDI is a microcap; thus it has enormous growth potential.
6. Wait ‘til all the TSLAites discover KNDI.
7. KNDI has electric battery patents. These alone could be worth more than the current market cap.
8. The biggest risk in a Chinese stock is normally fake numbers. Here that doesn’t matter, because you’re buying growth potential, not earnings or revenue.
I have also made the following subjective observations with regard to the stock and option prices.
KNDI’s options have wide spreads, but offers in the middle frequently fill. Option volume seems to be increasing lately. Still, day trading the stock may be more lucrative than options.
KNDI is very volatile. Can be up or down a point or more quickly intraday. This creates trading opportunities.
KNDI seems to go up or down intraday not on news but on volume. On many volume spikes (which are frequent) KNDI will move up or down hard.
KNDI is often very volatile (up or down big) before the bell and in 1st half hour, creating stock trading opportunities. It often seems to move back to the norm during the day.
The above are just a few thoughts to consider. But KNDI remains my stock pick of the year.
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(DISCLAIMER: The above is my subjective opinion only and NOT investing advice or suggestions in any form. I am not a registered advisor of any kind. I own KNDI stock and call options.)