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
- US Recession Looms As Factory Orders Plunge 9th Month In A Row | ZeroHedge
- Conviction Buy: $AMCX | iBankCoin.com
- Will The Fed Have To Save Emerging Markets With QE4? | ZeroHedge
- Crude Carnage & Asian Contagion Crushes Hype-Fueled Dreams Of US Stocks | ZeroHedge
- The China Slowdown: Who Loses in the Middle East? | Financial Sense
- This Is Not A Retest - It's A Live Bear! | ZeroHedge
- US Stays Solid Amid Global Quakes | Financial Sense
The most relevant financial news and articles from the Internets
- Court sides with Uber drivers to expand case over pay | Business Insider
- Ukraine: sufficient vaccine coming to block polio outbreak... | Business Insider
- A leading graphic designer calls Verizon's new logo 'just another... | Business Insider
- Facebook built a slick online food ordering app — but it's... | Business Insider
- The pricing information for Apple's iPhone 6S has leaked ahead of its launch (... | Business Insider
- Donald Trump showers praise on 'total winner' Tom Brady after... | Business Insider
- Report: Ohio State QB Jones taken to hospital for headache... | Business Insider