Why Kandi Technologies Group's Shares Popped
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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The article Why Kandi Technologies Group's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium and The Motley Fool have no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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