This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Kandi Technologies (KNDI) Is Lower on Wednesday

NEW YORK (TheStreet) -- Kandi Technologies (KNDI - Get Report) is slipping on Wednesday after announcing it has entered into a securities purchase agreement with two institutional investors.

Before the bell, shares had taken off 5.2% to $20.06.

The electrical vehicle (EV) developer said it intends to raise around $11 with the direct placement of 606k shares of common stock at a price of $18.24 per share.

The China-based business also said it would issue warrants to the investors for 90.9k worth of common stock at $22.80 a share. The warrants have a term of 18 months from their issue date.

Kandi Technologies said the net proceeds would be used for general working capital purposes. The offering is expected to occur around March 24, pursuant to customary closing conditions.

Earlier in the week, the company reported fourth-quarter revenue of $50.6 million, a 92.2% year-over-year increase, and adjusted net income of $4.6 million.

In its 10-K filing with the SEC, Kandi also noted it has been part of an SEC investigation since November and that, if prolonged, it would have a significant financial impact.

"A protracted investigation could impose substantial costs and distractions, regardless of its outcome. There can be no assurance that any final resolution of this investigation will not have a material and adverse effect on the company's financial condition and results of operations," the company said in the filing.

Reasons for the SEC's investigation were not disclosed.

Must read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates KANDI TECHNOLOGIES GROUP as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate KANDI TECHNOLOGIES GROUP (KNDI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Submit an article to us!
SYM TRADE IT LAST %CHG
KNDI $11.95 -1.70%
AAPL $126.28 -1.90%
FB $77.36 -1.80%
GOOG $533.19 -1.40%
TSLA $231.11 0.26%

Markets

DOW 17,967.47 -102.93 -0.57%
S&P 500 2,093.27 -21.22 -1.00%
NASDAQ 4,942.8650 -74.0640 -1.48%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs