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
- United States Of China: In Which States Is Your Landlord Most Likely To Be Chinese | ZeroHedge
- Daily Scorecard | iBankCoin.com
- Oil Tops $83, Gold Over $1255 As Commodities Spike Higher & Riyal Slides To 2009 Lows | ZeroHedge
- 113 Federal Reserve Staff Members Make $250,000 Annually | ZeroHedge
- How to Link Australian Iron With Marine le Pen | Financial Sense
- "Saudi's Policy Of Downplaying Oil Prices Will Backfire On Them" | ZeroHedge
- Potential Intraday Runners | iBankCoin.com
The most relevant financial news and articles from the Internets
- Palestinian behind Jerusalem car attack dies of... | Business Insider
- Banksy’s New Street Art In His Hometown Of Bristol Has Already Been Vandalized | Business Insider
- AT&T Shares Down 3% After Earnings Miss (T) | Business Insider
- Spanish town hopes for 'Game of Thrones' tourism... | Business Insider
- Here's Why Kobe Bryant Cold Calls Other Celebrities | Business Insider
- Sweden Is Learning Just How Insanely Difficult It Is To Capture An Enemy... | Business Insider
- No end in sight for Hong Kong protests after talks | Business Insider