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
- BofA Fined $12.5 Million For Creating At Least 15 Mini "Flash Crashes" | ZeroHedge
- Truth in Numbers | Financial Sense
- 'Angry' Davids Vs. 'Complacent' Goliaths: Social Revolution Looms | ZeroHedge
- Nate Silver: 51.1% Chance Of Trump Winning If Election Held Today | ZeroHedge
- FBI Crime Report Reveals Massive Surge In Murder Rates In Several Large U.S. Cities | ZeroHedge
- Saudi Arabia Bails Out Banking System After Interbank Rates Hit 2009 Highs | ZeroHedge
- Curve Flattens After Treasury Sells $34 Billion In Uneventful, Tailing 5Y Auction | ZeroHedge
The most relevant financial news and articles from the Internets
- How property taxes in California help people with big, expensive houses | Business Insider
- The mother and brother of the NYC bombing suspect have... | Business Insider
- The ACLU will provide legal counsel to NYC... | Business Insider
- The master key to understanding the IoT... | Business Insider
- One of the biggest mergers in history was just given the... | Business Insider
- The US military is asking for 8,000 more Marines | Business Insider
- The glasses that keep computer screens from destroying... | Business Insider