A123 Systems Fights for $1 Level
A123 Systems, Inc. (NASDAQ:AONE) is barely trading above $1 a share. In the last 3 months its share price has tanked 37%.
Its been a rough go for shareholders of A123 Systems and it doesn't appear its going to get better any time soon. Recall a few years ago when A123 systems was going to change the world as we hoped electric cars using their batteries would rid the earth of its need for fossil fuels. In 2009 AONE was a $22 stock, fast forward to 2012 and the company is fighting for its survival.
May 31st AONE filed a harsh 8-K in which they worried about its mounting losses and cash burn "raise substantial doubt on the Company's ability to continue as a going concern." Management is trying to raise cash and is "evaluating other strategic alternatives," and is "in discussions with strategic partners for substantial investments."
Its a big risk for shareholders of A123 Systems and if the go Chapter 11 investors could be wiped out. AONE had $113 million in cash and equivalents as of March 31, down from $187 million three months earlier.
MASTERY Bottom line:
If you have the money to burn, now is the time to bet on A123 Systems. However its a significant risk if the company can keep going at this rate.
AONE shares got down to 82 cents in the last 12 months. Why not wait for that price again or cheaper if you really love this stock?
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Rice From Fukushima Was Served To Japanese Government Officials, And Then Something Odd Happened | ZeroHedge
- So, This is How Lululemon Just Announced the Firm’s New CEO | iBankCoin.com
- PMs Surge As Stocks Slumber On Dow's Lowest Range In 16 Months | ZeroHedge
- Are Stocks Cheap? | ZeroHedge
- Former Hawkish Bank Of Israel Head Rumored To Be Next Fed Vice Chairman | ZeroHedge
- New Long | iBankCoin.com
- Las Vegas Housing Demand Has Crashed While Supply Surging | ZeroHedge
The most relevant financial news and articles from the Internets
- Here Are The New Food Trends We'll See On Restaurant Menus In 2014 | Business Insider
- Here's Why You Should Buy Into The Hilton IPO — And Why You Shouldn't | Business Insider
- The US Misery Index Has Fallen To A 4-Year Low | Business Insider
- 8 Reasons Why Republican Steve Stockman Is The Biggest Troll In... | Business Insider
- MOBILE INSIGHTS: In The US, Smartphone... | Business Insider
- Westjet Airlines And Santa Claus Gave These Passengers A... | Business Insider
- If The NYC Subway Makes You Late For Work, The MTA Will Write You A Pass | Business Insider