 Okay in this video I want to talk about a candy stock market update, so KNDY, okay and what I want to go through in this video is that candy has actually responded to the recent allegations about them as a company and I want to go through this, what it means for the share price, can they bounce back, can they recover, can the reputation recover, is this just a small blip in the road and open intended or what is going on essentially and we'll go through this and what does this mean whether if you hold shares or whether you are considering buying them or just taking interest in the company and the electric vehicle space, so we'll get into that. I've first got to say that obviously I'm not a financial advisor, I'm a business teacher in my daily life but I'm by no means an expert in the stock market, I'm just showing you my research, my information that I go through and my thoughts and my journey and the stock market. I am a small YouTube channel making stock market videos so if you leave a like a much-appreciated helps out with the algorithm but we'll go through this, I want to make this a short video to respect the time. Okay so what we got is from Hindenburg Research and this was actually on the 30th of November which was they actually said that candy was faking their sales in the US to you know in terms of they were faking sales okay and what happened after that was the as you can imagine the stock price completely plummeted it was at something like 15 or 16 and then it plummeted right down to about seven or eight and it's just recently come back up again we're going to go into why. Okay so it says here and this was the report and I don't want to comment too much on this because let's look at the update of this from what the responses and I wonder if Hindenburg's gonna actually respond back or we're gonna see like a massive volatility through the stock you know as the responses and then the the counter responses come and and all that but anyways so candy how this China based NASDAQ listed company used fake sales EV hype to now 160 million from US investors and so yeah so this is just a report that came out you can you can read this report favoring in your own time here I don't want to make too long of a video but it basically reveals that apparently candy has been faking the sales of what they've got so they've been saying that their product is more popular than it actually is and that's what we're trying to to say and what it says here our investigation included extensive on-the-ground inspection at candy's factories and customer locations in China interviews with a dozen former employees and business partners and review of numerous litigation documents in international public records so this was a an investigation and a report into candy and they found that they were faking the sales now candy is actually responded to this just recently in the past the recent times and this is the response that we get from from candy okay here so we've got you should do a letter to the shoulders so on November 13 2020 a firm with an acknowledged short position in candy stock issued a research report that leveled a series of inaccurate allegations regarding candy and its management team the firm that issued the report is shorting our stock and will profit if the stock price declines in contrast the company's motive is to create value for all shareholder shareholders by building a durable and profitable leader in a dynamic growth industry it is clear that from the review that the report contains a variety of misleading accusations that either thinly veiled assertions of opinion or based on previous reported historical events as one example they question the odds of success of our white ride-sharing initiative anyone you included is free to assess the likelihood of success of our business strategy merely asserting an opinion on our strategy proves nothing about our trustworthiness assertions like this will we will ignore while the entire report lacks merit the company and its management believe it would be helpful to our shareholders to address the inaccuracies that received significant press attention okay and I don't want to read through all of the report you can look into it yourself it's on the candy website in terms of their response to it and so the report here says it mistakenly contends that candy USA and jazz motorsports have the same address so there was basically was through the few points where it basically says that some inaccurate information it but the important one here is is this one here the financial reports are audited and care is taken to properly record sales so so ultimately what what they're saying is that you know they're audited that they're not faking the sales that there's inaccurate information in the original investigation into candy and they've basically made this response okay and so they did take a while to respond but I suppose they've got to put together a good response to counteract what's been said is what was which is what what they've done so just here accordingly in contrary to contrary to the reports allegations we are enthusiastic about the progress we made in 2020 so start talking about the sales that they did get here and and this is how they conclude the their response to conclude we strongly believe that this report is late with innuendo and supposition which are counted by our proven prospects for future growth rest assured that we will continue to operate with the highest standards in order to maximize shareholder value and so they're completely refuting the report they're saying that they have got sales so what does this mean you know as we can see from from these these these allegations to candy and their response here you can see that the stock market is volatile for this company so it's one of those stocks that you can really swing trade or short-term trade in terms of the long-term prospects and you know I'm gonna do a video on that in a really detailed one for that but what does it mean so ultimately after the response that candy gave here the stock price actually shot right up 18% after it was in freefall it's shot right up so this stock is incredibly volatile now I only actually read this candy response like two or three hours after it actually you know aired so to speak so I really wish I actually bought some stock here you know as it as the as the market opened and sort of right you know ride the wave up a bit I know there's a bit of pullback on the stock people are still not sure you know but after that response the the stock price did go up there so they are trying to you know obviously respond to to it and they're not admitting any sort of guilt or anything like that so they're responding to it so what I'll do what I think I do actually think the vehicles themselves they are actually quite they do look quite good and the electric vehicle market is a bearmen industry it's a growing industry but it's obviously the only thing is I I've shorted this stock I've well I mean I've bought and sold this stock before I bought it at like five four or five I sold it at like ten and then yeah and then this is happening so I don't I don't know what I'm going to do but I'm going to create a video that goes in depth with this so be sure to like the video give the video thumbs up just thought I'd give you an update on this and I will speak to everybody later don't forget to subscribe