Yes, I bought a boat load of this calls this morning. Here are my reasons:
- – On September 17th, the Chinese Ministry of Finance announced the long anticipated renewal of China’s New Energy Vehicle (i.e. electric vehicle or EV) subsidies.
- – China’s first car-sharing scheme starts in Hangzhou
- – JINHUA, China, Aug. 9, 2013 (GLOBE NEWSWIRE) — Kandi Technologies Group, Inc. (the ‘Company’ or ‘Kandi’) (Nasdaq:KNDI), today announced that the construction of pure EV smart vertical parking and charging facilities for public EV sharing system (the ‘Project’) is right on schedule. According to the updated progress report, there will be five pure EV smart vertical parking and charging facilities completed in the coming September. By the end of 2013, 30-40 pure EV smart vertical parking and charging facilities are expected to be built in Hangzhou City. In a year from now, 5,000 to 10,000 Kandi pure EV ‘JNJ6290EV’ model and Kandi-Geely co-developed Brand ‘JL7001BEV’ will be deployed in Hangzhou City based on the progress.
- – The pilot project for Public EV sharing project is very well received by Jinshan District of Shanghai and the local government is in the process of the location selection. The trial operation of Shanghai’s public EV sharing system is expected to be launched before the end of 2013.
Notice that on point 3 and point 4, if business is progressing as planned which I’m betting that it will, $7.50 will be easily taken out before December comes around.
Chartwise, the daily chart looks like a cup & handle breakout is about to happen as soon as the $5.72 high is taking out.
Of course, this is a highly speculative play where if there is no progress in the business development per above, you can lose all your option premium.
My 2 cents.