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
- Market Recap Apr 28, 2016 | FundMyMutualFund
- Denmark's "Recipe For Integration" - Segregated Swimming Hours | ZeroHedge
- Bernie Sanders' Wife: "It Would be Nice If The FBI Moved Along Hillary's Email Probe" | ZeroHedge
- PRECIOUS METALS INVESTOR: Must See Important Charts & Data | ZeroHedge
- The Fed Just Found Its Next Excuse Not To Hike Rates | ZeroHedge
- Candidates Confirm: No Crash This Year | Financial Sense
- The Most Expensive Cities To Live In Across The Globe | ZeroHedge
The most relevant financial news and articles from the Internets
- Why Apple stumbled this week (AAPL) | Business Insider
- Raiders owner says he'll spend $500 million to move team... | Business Insider
- How one founder struggled to maintain control as his app hit No. 2 on the charts... | Business Insider
- 3 ways AI could help save the planet | Business Insider
- There's an incredible Jamaican bar that's better known for its cliff diving than... | Business Insider
- The Wii U has been one of the worst purchases of my life | Business Insider
- Why Aleppo is Syria's fiercest battleground | Business Insider