Story Stocks to Watch

• Kandi Technologies Corporation [[KNDI]] – Shares of the all-terrain vehicle and go-kart manufacturer are set to open higher after announcing that its electric powered COCO vehicle has met requirements to receive tax credits in the U.S., which it expects to help spur sales in the country. Qualified purchasers of the vehicle will receive a tax credit in the amount of $4,435, according to a letter from the U.S. Department of Treasury informing the company that its low speed electric vehicle was eligible.
• FLIR Systems, Inc. [[FLIR]] – Shares of the thermal imaging designer are set to open higher ahead of its October 21st earnings date after being recommended by CNBC’s Jim Cramer on his Mad Money program. The hedge fund manager noted that FLIR gets about 53% of its sales from its government systems division, with other commercial revenues coming from airports that use the company’s cameras. Cramer believes that the stock could be a good investment with a good catalyst still ahead, trading at 18.8x next year’s earnings with a 19% long-term growth rate.
• Joe’s Jeans Inc. [[JOEZ]] – Shares of the denim jeans and related casual wear provider are set to open higher after it reported a 16% increase in third quarter net sales. The company earned $1.9 million, or $0.03 per share, on revenues that grew 16% to $21.2 million for the quarter. Meanwhile, gross margins remained steady at 49% and operating income increased 22% to $2.8 million. The company also predicted continuing strong performance in the fourth quarter and into 2010.

Market Preview

U.S. futures are pointing to a lower open that could trim strong weekly gains, after Bank of America Corporation [[BAC]] reported a third quarter loss and sales from General Electric [[GE]] missed analyst expectations. GE in particular is seen as a barometer of the U.S. economy, and there was hope that it would beat estimates already priced into the market.

The Federal Reserve’s industrial production figures are due out at 9:15 am, with many analysts predicting a third consecutive rise in the number, putting manufacturing at the forefront of the economic recovery. Meanwhile, the Reuters/University of Michigan consumer confidence report (due out at 10 am) is expected to show an easing off of the highest level in more than a year.

Oil prices jumped to their highest levels in a year after a U.S. government report showed an unexpected fall in gasoline stockpiles. In the metal markets, gold fell as the dollar made a brief recovery against the euro and analysts asked themselves whether or not the rally may have been overdone. Gold dropped to $14.10 an ounce, while oil price rose $2.40 to $77.58 per barrel.

Hong Kong stocks posted modest gains before profit-takers leveled the index around mid-day Friday, after oil and commodities shares rallied on higher crude prices and a weaker dollar. Meanwhile, China’s Shanghai Composite dropped 0.53%, after central bank highlighted a time limit to China’ easy policy stance hurt sentiment. Finally, European shares opened higher as financial shares turned into the green after dragging down the market down in recent days.

Said the CEO, “While these certifications are valid only through December 31, 2009, we have submitted the tax credit applications for 2010 and are confident our application to renew acknowledgement of the KD08E as a Qualified Electric Plug-in Vehicle will be approved. Further, we are planning to submit applications for additional vehicles, which we believe also will meet the requirements.”

The COCO convertible is currently being sold in the US and travels up to 60 mph and 25 miles on a single charge.  It retails for around $12,000 but there are a few sites selling used ones for around $10K.

KNDI is currently trading up about 10% in premarket trading.

And shares of Kandi Technologies (NASDAQ:KNDI) advanced about 18 and a half percent, after the US Treasury approved the company’s “COCO” low speed electric vehicle as a qualified plug-in electric vehicle, making buyers eligible for a tax credit of over $4,400. The approval could generate demand in the US for the low-speed two-seater vehicle, which travels up to 60 miles on battery, at a top speed of 25 miles per hour.

Biopharmaceutical company Targacept (NASDAQ:TRGT) presented data from its phase 2B trial of its treatment for major depressive disorder. The company called the study “highly successful” and said compelling evidence was provided that the treatment can provide relief for millions of patients who do not respond well to the current first-line therapy. Targacept shares jumped about 19 and a half percent in early trading Friday.