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
- Guest Post: Timing Is (Not) Everything | ZeroHedge
- Will the Real Economy Please Stand Up? | Financial Sense
- The Meek Shall Inherit Nothing At All | iBankCoin.com
- 1 In 4 Europeans At Risk Of Poverty | ZeroHedge
- The Hunger for Munger | iBankCoin.com
- Great Graphic: Changes in South African Inequality During Mandela’s Life | Financial Sense
- Uruguay Legalizes Pot Trade, But Who "Uses" The Most? | ZeroHedge
The most relevant financial news and articles from the Internets
- Why CollegeHumor Can't Make Money On YouTube, Despite Having One Of The Most... | Business Insider
- The World Gathers In South Africa To Celebrate Nelson Mandela | Business Insider
- Sequestration Is Finally Working | Business Insider
- Today's Google Doodle Is A Tribute To Programming Pioneer Grace Hopper | Business Insider
- Here Comes A Major Battle In Texas As Ultra-Conservative Congressman Will... | Business Insider
- This Brilliant Stop Motion Video Only Uses Photos Taken With Google Glass | Business Insider
- Here's The Moment Barack Obama Shook Hands With The President Of Cuba | Business Insider