a battery maker powers up post-ipo - lithium ion cell
Its stock has been on a roller coaster since the A123 System went public.
How much juice do they have left? SAN FRANCISCO (Fortune)--
If you believe the battery in your car will soon be bigger than the engine. -
Or replace it completely. -
You should pay close attention to the A123 System.
Small town on the water. -
S. -based companies developed advanced lithium-ion batteries for products such as electric tools and automobiles, which went public at the end of September after withdrawing earlier IPO applications to wait for a better investment environment.
The company discovered this and on the first day of trading, the company's stock price rose 50%.
The stock has been riding a roller coaster since then.
When the market fell in the week of October 10, A123 (AONE)plummeted 17%.
Overall, the stock has risen by about 8% since it went to market in September 23.
Obviously, this stock needs to be cautious, just like all new problems.
A123 is not a profitable company;
The the company report said as at June 30 of a years income for 89 million beauty yuan loss the 90 million beauty yuan.
If it doesn't get $0. 249 billion in federal stimulus money to build a battery-making plant outside Detroit, a123 will be in a very difficult situation, may not be a candidate for an IPO: once a leading contender for GM's initial supplier of plug batteries to be launched
Among Chevrolet Volt's hybrids, it lost to a subsidiary of South Korea's LG.
This is your warning.
But considering that A123 is one of the few in the United StatesS. -
Almost every automaker in the world is predicting a huge competition in the industry.
Although it has not yet introduced batteries for automakers, A123 does work with a handful of automakers, particularly Chrysler (
Now Fiat)
Daimler and BMW.
GM offers possibilities for future cooperation with A123.
At the same time, Black & Decker and DeWALT are launching millions of A123 lithium-
Ion batteries in electric tools.
The electrified transport is emerging in various forms, in which the battery plays a role.
A gasoline hybrid like Toyota Prius. Plug-
In a hybrid like Volt, all the batteries
Companies such as Nissan and Renault soon launched electric vehicles. Even hydrogen-fuel-
Battery cars need a complex battery system, especially if they're going to be the next-
Run a fuel cell and battery instead of a gasoline engine/battery combination instead of a hybrid.
The problem A123 still faces as an investment is, how long does it take for all of these technologies to reach scale --market road?
Think about the lesson of Ballard Power. Ballard (BLDP)
It used to be a high fuel cell.
But its stock is now worth only 1.
Third less than when it went public in 1995, as car fuel cells failed to take off as quickly as people thought.
Although Ballard has withdrawn from the automotive industry, they have finally arrived there.
A123 faces similar players, technical barriers and time issues. If mass-
Cars on the market will soon be available and A123 may be hit a lot.
If not, you can expect long and painful pain.