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Dolat Ventures Inc (OTCMKTS:DOLV) Looks To Resume Its Bull Trend

Dolat Ventures Inc (OTCMKTS:DOLV) Looks To Resume Its Bull Trend
Written by
Jarrod Wesson
Published on
May 16, 2017
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In our first piece about Dolat Ventures, Inc. (OTCMKTS:DOLV) in April, we noted the reverse-merger, and the purchase of shares of the company by Mr. DeQun Wang. We stated that the company should be followed closely, as it was delivering news that were causing massive volume and remarkable shareholder interest. Additionally, we found some new information since our last article and saw a lot of unanswered questions in financial forums about the current merger and the other company, Ji Ming Yang Amperex Technology Ltd. Hence, we decided to write a new article. Have a look at the recent price movements:SourceThe merger - More about Ji Ming Yang AmperexWe encourage traders to check out the previous article, as there is plenty of information about the merger conditions. In this piece, we will only focus on the Chinese company Ji Ming Yang Amperex ("Ji Ming"), as it seems to be the information the traders were looking for recently:

"Acquisition is definitely boosting the investor confidence. Volume remains strong with large blocks of trade. Should head significantly higher from here on" Yahoo Finance User: trust_da_dj (Source)"Yes, but who is the other Chinese company? Is it big?" Yahoo Finance User: hedge (Source)

Ji Ming Yang focuses on the development of batteries for "New Energy Vehicles" ("EVs"). According to its website, the company owns different patents to extend battery life as well as reduce operating costs. The aim of the company is the commercialization of this know-how. The company's strategy is very well defined on its website:

"Our mission is for you to enjoy driving our electric vehicle anywhere, anytime. Our customized battery recharging solutions can be easily deployed at home, public space, and office parking space, allow you to have a smooth experience of recharging at home or at work." Source

The company was founded in March, 2015 with a registered amount of capital of $7 million. The headquarters office is in Fengtai District, Beijing, China. We could found that the main product is this EV:SourceFrom its characteristics, we highlighted its battery capacity, which is 77.8 kwh, and its battery replacement time. The main problem of EVs is the lack of of charging stations, thus buyers need to look for large capacity, and this car, in our opinion, is an interesting option. All the other parameters are very acceptable for an EV. Have a look at them:SourceWhy is this company an interesting opportunity? - The EV industry in ChinaAs noted recently, when we covered one of DOLV's competitor, Kandi Technologies Group Inc., it is a great time to invest in the EV industry in China, as the Government is benefiting from the sector. Ji Ming Yang noted the Energy Saving and New Energy Automotive Industry Development Plan on the website, have a look:

"It is the first time in the Chinese history that environmental issue has been raised to a new height of the survival and sustainable growth of Chinese race. The State Council proposed the Energy Saving and New Energy Automotive Industry Development Plan (From 2012 to 2020). The plan demonstrates a strategic direction of automotive industry transition of developing electric vehicles and replacing traditional fuel vehicles." Source

Here is a very good summary of the benefits that the government brings to investors:

  • (1) generous cash subsidies: In 2016, China’s central government subsidized pure electric vehicles up to RMB 55,000 per unit.
  • (2) charging facility construction support: In September 2015, the State Council revealed “2015-20 charging facility development guidance” to help accelerate new energy vehicle development.
  • (3) free vehicle licenses in quota control cities
  • (4) exemptions from acquisition taxes and excise taxes, which are normally based on engine displacement and price, as well as exemptions from circulation/ownership taxes. Source

In our opinion, traders may not yet have researched the company merging with DOLV. Hence, they may not know that it is merging with an EV producer that will obtain many benefits from the Chinese government. Other well known EV stocks have been rising quite a bit because of it and the same could happen to DOLV once investors get to know this new information. Is this a catalyst? Yes, some traders will consider the merger a catalyst.ConclusionIn this new article, we included new information about the Chinese company merging with DOLV. While researching this company, we found out that it will profit from new regulations in China that benefit EVs. Additionally, we saw the characteristics of the EV sold by the company and noted the large capacity offered. In our opinion, the merger will be a great move and it could be considered a good catalyst for DOLV. We still need to assess the financial situation of the merged company, but so far there is a lot to like in the business logic of the merger. We will be updating our subscribers as soon as we know more. For the latest updates on DOLV, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.

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