plus 4, You Auto Know: Dangerous Dakar - Times Colonist

You Auto Know: Dangerous Dakar - Times Colonist
Kandi Technologies, Corp. Forges Strategic Alliance With Major - MSN Money
The Role Of Monroe Shock Absorbers - PRLog (free press release)
TVS Motor shares soar 9 percent - Silicon India
How Warren Buffett picks a winner - Globes - Israel Business Arena

You Auto Know: Dangerous Dakar - Times Colonist

Posted: 04 Jan 2010 07:17 AM PST

You Auto Know is a new regular feature that examines auto-related facts and fiction, busts some common car myths and checks out weird and wonderful tidbits such as little-known trivia about the automotive industry.

DID YOU KNOW..

The Dakar rally, considered by many to be the world's toughest race, is underway in South America for the second consecutive year. Starting yesterday and continuing until Jan. 17, competitors will fight it out in 14 stages over 9,000 kilometres, including the Atacama Desert and its gigantic dunes.

- In 1977, Paris-Dakar founder Thierry Sabine got lost on his motorbike in the Libyan desert during the Abidjan-Nice Rally. Rescued, he returned to France and came up with a route starting in Europe, continuing to Algiers and crossing Agadez before eventually finishing at Dakar.

- The first Paris-Dakar took place on Dec. 26, 1978, when 182 vehicles turned up in the Place du Trocadero for the 10,000-kilometre event. Among the 74 trailblazers who made it to the Senegalese capital, it was Cyril Neveu, at the handlebars of a Yamaha 500 XT, who arrived first.

- In 1983, the first visit to the Tenere desert was as astounding as it was terrifying. Competitors found themselves caught in a sandstorm, which caused some 40 drivers to lose their bearings. Those who strayed furthest spent as much as four days getting back on course.

- Organizer Sabine and four others were killed in a helicopter accident in 1986. Sabine's ashes were scattered in the desert and his father Gilbert, aided by Patrick Verdoy, took over the rally organization.

- In 1988, more than 600 vehicles started out from Versailles. Peugeot, which had made a successful debut the previous year, set out to defend its title. But Ari Vatanen, having led the rally, had his 405 Turbo 16 stolen. When it was eventually found, it was too late for Vatanan to continue.

- For a change of pace, in 1992, the route was altered, entering Africa from the north and proceeding to the southernmost tip. The Paris-Cape rally comprised 22 stages and passed through 10 countries on a route stretching 12,427 km.

- Jutta Kleinschmidt, first competing in the Dakar 13 years earlier on a motorcycle, became the first woman to win the overall event in 2001, at the wheel of a Mitsubishi.

- After the murder of four French citizens and three Mauritanian soldiers just before the start of the 2008 edition, the rally was cancelled. The following year, the event was moved to South America.

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Kandi Technologies, Corp. Forges Strategic Alliance With Major - MSN Money

Posted: 04 Jan 2010 04:54 AM PST

Kandi Technologies, Corp. (NASDAQ: KNDI) today announced it has formed a strategic alliance with China Potevio/CNOOC New Energy and Power, Ltd. -- a joint venture of China National Offshore Oil Corporation (CNOOC) and China Potevio Co. -- and Tianneng Power International, Ltd., aimed at speeding up the commercialization and achieving mass adoption of Pure Electronic Vehicles (Pure EVs) in China. Working together with government support, the companies believe they are the first in China with an innovative automotive transportation business model that provides a comprehensive solution to overcome current obstacles to an oil free future.

Within the Alliance, formally named "Alliance for Chinese Electric Vehicle Development and Commercialization," Kandi -- an established China-based leader in the design and manufacture of all terrain recreational vehicles and developer of the "COCO," a battery powered low-speed vehicle for casual driving -- expects to design and manufacture electric cars with patented (and patent pending) technology that permits easy battery removal and replacement, which is central to the new open architecture business model.

Mr. Xiaoming Hu, Chairman and CEO of Kandi, who spearheaded the new Alliance, stated, "We now have a core group of highly competent, like minded companies, with backing from the government who see the future of transportation in China -- zero emission vehicles powered by electricity that will decisively improve China's environment and help free us from dependence on foreign oil. Kandi is privileged to be part of this group which, among other things, we believe will help solidify our leadership in building and marketing electric vehicles."

Mr. Hu continued, "While auto companies around the world are racing to create and sell EVs, it is widely recognized that the key 'bottlenecks' to creating a mass market for battery powered vehicles include their relatively short driving ranges, high costs, long charging times and limited facilities for recharging. These are hurdles our Alliance believes can be overcome with an open architecture strategy which we aim to implement over time with government cooperation on a city by city basis throughout China. Our initial test city will be Jinhua City with a population of nearly five million in one of China's most economically advanced regions and where Kandi is headquartered. To our knowledge, if we are successful, Jinhua will be the first city in China with a comprehensive model EV transportation system in place."

The New EV Business Model

The new EV business model of the Alliance focuses on the specific transportation needs of China's rapidly growing urban centers and an anticipated high degree of government cooperation. Some of the current key elements of the model include:

 -- Building a comprehensive network of EV "battery stations" throughout each city for one-stop battery charging, replacement, recycling and rental -- Powering the battery stations with a centralized industrial "battery charging farm" in each city that can optimize electrical usage and costs -- Selling affordable pure electrical cars without batteries -- equipped, however, with Kandi's patented (and patent pending) technology for easy battery removal and replacement -- Making traditional batteries available on a lifetime, maintenance free rental basis -- and replacing, maintaining, and recycling them at the battery stations -- Obtaining government support not only in the form of subsidies for car ownership, but also for operational requirements such as permits for battery station construction and operation -- Reflecting the fact that most commuting in China is intra-city, covering relatively short distances, the model will be tested initially in Jinhua City and then in other mid-size cities. Expansion would be via the existing network of Alliance partners or by duplicating the model with other new partners.

Removing All Key Obstacles To Success

The advantages of this model to drivers of EVs are clear, starting first and foremost with the purchase price of their cars, which will be much lower without batteries, and with anticipated government subsidies. Further, they will never have to worry about owning, maintaining or disposal of their batteries. Significantly, they also will have no worries about safely driving too far away anywhere within or just outside their city limits. Over time, driving ranges will expand as the model is expanded to neighboring cities and regions.

For Alliance partners, the key revenue stream will be revenues from the battery stations, which will operate in a "green" and efficient mode on energy supplied by the battery charging farm. Scale up in revenues will occur as EV usage and sales expand and more battery stations are built in new cities.

Alliance Members (in addition to Kandi)

Potevio/CNOOC New Energy and Power Ltd. is a joint venture between China Potevio Co. Ltd. Group and China National Offshore Oil Corporation or CNOOC. China Potevio Co. Ltd. is one of the largest state owned enterprises in China which focuses on IT equipment and service. China National Offshore Oil Corporation, is China's largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world. The Group mainly engages in oil and natural gas exploration, development, production and sales. The Potevio/CNOOC joint venture strives to develop and to invest in alternative energy technology in China.

Tianneng Power International, Ltd. and its subsidiaries is one of China's largest battery producers which engages in producing and selling lead-acid motive battery for electric bikes, Ni-MH batteries and lithium battery products. The Group also has entered the fields of solar and wind energy storage batteries as of 2009.

Mr. Hu commented further, "Our new Alliance is committed to the success of its revolutionary business model on a large scale over time. Nevertheless, while many of the key elements for such success are in place, there are still several key issues to be resolved. In the weeks and months ahead, I'm sure each member, including Kandi, will be providing periodic updates and new details on the progress of the Alliance, as we work diligently to bring to fruition what we believe will be one of the most important chapters in the commercialization of electric vehicles in China."

About the Company

Kandi Technologies, Corp. (NASDAQ: KNDI) ranks as one of the largest manufacturers and exporters of go-karts in China, making it a world leader in the production of this popular recreational vehicle. It also ranks among the leading manufacturers in China of all terrain vehicles (ATVs), and specialized utility vehicles (UTVs), especially for agricultural purposes. Recently, it introduced a second generation high mileage, two seater three-wheeled motorcycle. A major company focus also has been on the manufacture and sales of a highly economical, beautifully designed, all electric super mini car -- the COCO -- for neighborhood driving and commuting. Kandi believes that battery powered, electric super minis will become the Company's largest revenue and profit generator. The Company's products can be viewed at http://www.kandivehicle.com. Its corporate/ir website is http://www.chinakandi.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.

Contacts:  Kandi Technologies, Corp. Hu Xiaoming Chairman and CEO 86-579 - 83906856  US Ken Donenfeld donfgroup@aol.com Tel: 212-425-5700 Fax: 646-381-9727  US Investors Focus Asia partners Robert Agriogianis Tel:973-845-6642

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The Role Of Monroe Shock Absorbers - PRLog (free press release)

Posted: 04 Jan 2010 03:06 AM PST

PR Log (Press Release) – Jan 04, 2010 – Monroe shock absorbers play an important role in your car's suspension system. You might want to replace the Monroe shock absorbers when evident signs of wear become apparent, otherwise your safety and comfort within your car could become compromised. Monroe shock absorbers work by easing the compression and extension of the car's Monroe suspension springs and hence avoiding ongoing bouncing.

Monroe shocks work to absorb road impact, prevent excessive rebound, limit sway and improve overall road handling. When your Monroe shocks are working properly, your car holds on to the road whether you are braking, negotiating a bend while in the road, driving on bumpy roads or experiencing strong side winds. If worn out, your Monroe shocks can mean you lose control of your vehicle and put you, your passengers and riders in other cars in danger.

Strut assemblies wear out gradually. Longevity depends on a number of factors. Local driving on smooth road surfaces will prolong everyday living of shocks and struts, on a trip consistently on winding, gravel or dirt roads will initiate quicker replacement. The Monroe Air Ride Conversion Kit was designed to replace the air suspension used in 1988 to 1994 Lincoln Continentals. Monroe engineers developed a coil spring replacement for the air spring used in the original Original manufacturer' s suspension system.

Combined with brackets built for the Lincoln Continental and application- specific valving, the retrofit kit is a direct replacement option. This retrofit is made to replace all four air struts and is fully engineered to be an assembled conversion of the suspension structure. Since it's a mechanical system, the Monroe retrofit package will not obstruct the vehicle's electrical system.

A shock absorber is a device used to smooth jolts or shocks and to disperse kinetic energy. Shock absorbers are crucial in motorcycle and automobile suspension, in landing gear for aircraft and as part of the support systems for industrial machines. A large version of the shock absorber is sometimes used in structural engineering to add stability and lessen damage from earthquakes and other disasters. The shock absorber is usually a cylinder which has a sliding piston that is cushioned by hydraulic fluid or air.

The Lincoln Town Car's air suspension uses a small, separate air compressor under the driver's side left fenderwell, with air lines running to the air bags. On the top of each air bag is a electrical valve. This is a relief valve that allows air to be exhausted when activated, and which senses the number of air pressure within the air bag to keep both sides equal.

These valves are operated via a leveling sensor that is that come with the body of the car and to the rear axle by a movable arm. When the rear of the car drops due to increased load, the arm is pushed up. When the arm is pushed up, it turns on the air compressor and fills the air bags to level the car. When the load is removed and the arm moves down, indicating that the back of the car has risen, the sensor opens the valve on the air bags and allows air to escape, lowering the car.

If the back of the car is low, indicating that the air suspension is not working, and the air suspension light is on, check the fuse first. If the fuse is all right, check the air suspension switch in the trunk and make sure it is on. This switch is used when the car is in for service. Always turn off the switch before lifting the car, because the sensor will think the car is rising and keep the air bag valves open, ruining the rear air suspension.

Monroe Sensa- Trac Shock Absorber features position sensitive damping and the safe tech system placing precision tapered grooves in the pressure tube with application engineered valving and fluon banded piston. This truck shock absorber adjusts faster to changing road and weight conditions. It is equipped with special modifiers to reduce friction and ensure smooth rod reaction. This truck shock absorber features full displaced valving that adjusts to road extremes to provide consistency and ride comfort. It includes a 1. 1375 inches large bore to provide better and consistent control. This truck shock absorber comes in addition to a fluon banded piston to enhance responsiveness to changing road conditions.

For more information, please visit our website: http://www.strutmasters.com/

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TVS Motor shares soar 9 percent - Silicon India

Posted: 04 Jan 2010 04:18 AM PST

Bangalore: The TVS Motor stock finished among the top gainers in the market, after its price went up by more than nine percent. Having started the day at Rs. 66.10, the stock touched its 52 week high of Rs. 74.10, before closing trade at Rs. 70.85, up 9.59 percent. During the day, 3,881,371 TVS Motor shares were traded in the market, with the current P/E ratio of the stock at 29.89.

TVS Motor Company is an India-based company that operates in the automotive vehicles segment. It manufactures a range of two-wheelers from mopeds to racing-inspired motorcycles. The Company launched its three wheeler - TVS King - in six states in fiscal 2009. During fiscal 2009, the company launched its two-stroke three wheeler in petrol/compress natural gas/liquefied petroleum gas variants. Recently, the company reported a 34 percent increase in its sales in December 2009. The company reported net sales of 1.19 lakh units in December 2009 against 89,285 units a year ago.

The company's cumulative growth showed a 10 percent increase in sales of 11.09 lakh units up to December 2009 compared to 10.06 lakh units in the same period of previous year. Out of the 12 analysts following the stock currently, the consensus recommendation is to hold the stock, while five analysts suggest to sell the stock. Sundaram BNP Paribas Select Small Cap Fund holds the highest number of TVS shares with 1,409,801 shares in its portfolio.

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How Warren Buffett picks a winner - Globes - Israel Business Arena

Posted: 04 Jan 2010 03:06 AM PST

Celebrity weddings can be million-dollar affairs these days, but when renowned investor Warren Buffett married last year, he did so in a small ceremony involving only himself, his new bride, and two guests, according to The New York Times. The wedding was followed not by a privately catered feast, but instead by dinner for the quartet at Bonefish Grill, a seafood restaurant chain where you can get a center-cut filet mignon for less than $20.

Buffett's lifestyle may not brim with the glamour and excitement you'd expect of one of the world's wealthiest men -- his primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes -- but his resume and investment portfolio are enough to make anyone's heart skip a beat. Five decades after starting his first job, Buffett has amassed a $44 billion fortune through his stock market expertise. His firm, Berkshire Hathaway, a holding company that owns such corporate giants as Geico and Fruit of the Loom and has sizable stakes in the likes of Coca-Cola, Wells Fargo, and American Express, averaged a 24 percent annual return over a 32-year period, one of the greatest stock market runs ever.

That success has made Buffett the most well-known of the Wall Street greats upon whose philosophies I base my "Guru Strategies", computer models that each mimic the approach of a different investment sage. And when it comes to Warren Buffett, investment philosophy parallels personal lifestyle. He didn't make his fortune betting on trendy, flashy stocks, nor did he do it by taking high-risk gambles that went his way. His was a steady-as-it-goes, conservative approach that focused on companies whose prices didn't reflect their strong financials and lengthy track records -- an approach that showed that high returns and high-risk stocks don't have to go hand-in-hand.

Buffett's philosophy is particularly relevant in light of the US market's recent downturn. While many investors jump on the bandwagon of stocks that are "hot" at the moment, Buffett finds that to be folly, and in fact sees downturns as an opportunity. "Investors should remember that excitement and expenses are their enemies," he said in a 2004 letter to Berkshire shareholders. "And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."

Comments like that have led some to speculate that, in light of the US market's recent troubles, Buffett -- whose firm spent $4 billion last year to gain a majority share of Israel-based Iscar Metalworking -- could be headed for a buying spree. His name has even come up as a potential suitor for much-maligned Countrywide Financial, the US's largest mortgage company and one of the firms hit hardest in the market during the recent subprime loan meltdown.

Inside the strategy

Before getting into the specifics of Buffett's approach and the model I base on it, one note: While most of my Guru Strategies are based on published writings of the gurus themselves, Buffett has not publicly disclosed his strategy. My Buffett-inspired model is based on the book Buffettology, written by Mary Buffett, Warren's ex-daughter-in-law, and David Clark, a Buffett family friend.

Most of my Buffett-based method centers on a company's fundamentals, but there are a few non-statistical criteria to keep in mind. For example, Buffett likes to invest in companies that have very recognizable brand names, to the point that it is difficult for competitors to take away their market share, no matter how much capital they have. One example of a current Berkshire holding that meets this criterion is Coca-Cola, whose name is in the culture of America, as well as other parts of the world.

In addition, Buffett also likes firms whose products are simple for an investor to understand -- food, diapers, razors, to name a few examples.

Johnson & Johnson for example

When it comes to the fundamentals-based aspects of Buffett's approach, the theme is solid results over a long period of time. He likes companies that have a lengthy history of steady earnings growth, and, in most cases, the model I base on his philosophy requires companies to have posted increasing earnings per share each year for the past ten years. There are a few exceptions to this, one of which is that a companys EPS can be negative or be a sharp loss in the most recent year, because that could signal a good buying opportunity (if the rest of the companys long-term earnings history is solid).

As an example, let's look at Johnson & Johnson (NYSE:JNJ), the New Jersey-based pharmaceutical giant whose 250 operating companies make a myriad of drugs and other health care products, including the Tylenol, Band-Aid, and Neutrogena brands, to name just a few. Over the past decade, Johnson & Johnson's earnings per share have been (from earliest to most recent) $1.02, $1.02, $1.39, $1.61, $1.84, $2.16, $2.40, $2.74, $3.35, and $3.73. That's the type of steady, predictable growth that Buffett looks for, so Johnson & Johnson passes this test.

Another part of Buffett's conservative approach: targeting companies with manageable debt. My model calls for companies to have the ability to pay off their debt within two years, based on their current earnings.

Again, let's look at JNJ. While the firm has sizeable debt -- $2.01 billion of it -- it also has very high annual earnings -- $10.5 billion -- that it could, if needed, be used to pay off that debt within the two-year limit.

Measuring management

As a manager, Warren Buffett has guided Berkshire Hathaway to historic gains over the past several decades. As an investor, he also likes to see a track record of strong, proven management in companies in which he invests.

Buffett assesses management using a couple different tools. One is return on equity, which measures how much profit a firm makes using its shareholders' money. Over the past 30 years, U.S. corporations have averaged about a 12 percent annual return on equity; the model I base on Buffett's approach likes firms to have posted an average ROE of at least 15 percent over the past decade, as well as over the past three years.

It's not enough for the firm to have a strong average return on equity; Buffett also likes to see consistency from year to year, and my Buffett-based model requires companies to have posted an ROE of at least 10 percent in each of the past ten years (with the possible exception of the most recent fiscal year).

Another way Buffett examines a firm's management is by looking at how it spends the company's retained earnings -- that is, the earnings a company keeps rather than paying out in dividends. My Buffett-based model takes the amount a company's earnings per share have increased in the past decade, and divides it by the total amount of retained earnings over that time. The result shows how much profit the company has generated using the money it has reinvested in itself -- in other words, how well management is using retained earnings to increase shareholders' wealth. Buffett is very pleased if a firm has generated a return of 15 percent or more on its retained earnings.

One more area Buffett examines: capital expenditures. He doesn't like to invest in companies that must spend a lot of money on major facility or equipment upgrades, or that need to spend a lot of money on research and development to stay competitive. My Buffett-based model thus looks for companies that have positive free cash flows, an indication that the company is generating more cash than it is consuming.

Johnson & Johnson meets all these criteria with flying colors. Over the past 10 years, the firm has an average return on equity of 24.9 percent while its average ROE over the past three years is 26.3 percent. The company has retained $13.06 in per-share earnings over the past decade, during which time its EPS has increased $2.71, and its free cash flow of $2.47 easily meets the Buffett cash flow test.

All that at a bargain

So far, all of the Buffett-based criteria have looked at the strength of a company's fundamentals. But Buffett doesn't just buy companies that fit a certain profile; he also makes sure that he's buying them at good prices. One way he does this is by comparing a company's initial expected yield to the long-term treasury yield. (If it's not going to earn you more than a nice, safe US T-Bill, why take the risk involved in a stock?)

When we take Johnson & Johnson's trailing 12-month EPS of $3.59 and its current price of $61.60, we get an initial expected rate of return of 5.83 percent, exceeding the current long-term treasury yield (4.80 percent). Combine that with the analysts' consensus estimated long-term growth rate of 9 percent, and we see that the stock is a better choice than treasury bills, which this model sees as a good sign.

In addition to Johnson & Johnson, several other companies currently get approval from my Buffett-based model. Here's a quick look at three American firms that make the grade:

Wal-Mart (NYSE:WMT): This retail giant, which sells everything from clothes to toys to automotive parts to food, has grown earnings in each of the past ten years, during which time it has posted an average annual return on equity of 20.1 percent.

Harley-Davidson, Inc. (NYSE:HOG): The legendary motorcycle maker has also grown earnings for 10 straight years, and has enough earnings to pay off its debt within one year.

The TJX Companies, Inc. (NYSE:TJX): The owner of well-known US discount clothing chains TJ Maxx, Marshalls, and Bob's Stores has averaged a 36 percent annual return on equity over the past decade. It has also grown earnings each year during that time.

Companies like TJX, Johnson & Johnson, Harley-Davidson, and Wal-Mart are precisely the type of firms Buffett has made his fortune from: large corporations that have lengthy track records of success, and which feature brand names that are engrained in the everyday lives of Americans. These stocks are not the kind of sexy, flavor-of-the-month picks that catch most investors' eyes; they are proven winners selling at good prices.

But don't misconstrue Buffett's conservative approach as lacking fortitude. He has made his fortune by sticking with the companies he believed would succeed in the long-term, based on his stock-selection methods, even if the stocks were highly unpopular or were taking short-term hits in the market. That kind of patience and resolve takes courage. You may never get to Buffett's level of wealth, but if you're willing to practice the same type of discipline, you're likely to add significantly to your portfolio in the long run.

Published by Globes [online], Israel business news - www.globes.co.il - on September 6, 2007

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