Kandi got a large number of short hit pieces but none of the allegations proved any wrongdoing and Kandi is chugging along just fine. While I was invested in KNDI I got quite a lesson in hit pieces. Without a doubt good shorts have to be smart, sharp, and on their toes to stay alive. Often they uncover real dirt and help clean up the market. There really isn’t anything unAmerican about shorting. The problem is that there are also a lot of scumbags shorting and writing hit pieces. The long investor has to know how to distinguish one from the other. Knowing your company is an essential, how else do you refute the FUD in hit pieces? The following which I posted to the Kandi board might be helpful:
We should learn something about the anatomy of hit pieces. Two things stand out for me:
1.- They are unreadably long. The idea is to create fear to get the reader to sell before finishing reading the piece. Once sold it puts a marker in your thinking. Even if you realize you have been fooled, many people are not willing to accept this fact, instead they rationalize.
2.- They are short on verifiable fact and long on innuendo and on irrelevant comparisons.