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IPO anyone? A123 files for IPO.

Discussion in 'Battery Discussion' started by flabby, Aug 8, 2008.

  1. flabby

    flabby Member

    Nov 25, 2007
    concord, ca
  2. TEG

    TEG TMC Moderator

    Aug 20, 2006
    #2 TEG, Aug 8, 2008
    Last edited: Aug 8, 2008
  3. domenick

    domenick Nerd

    Jan 2, 2008
    It might be better to wait until GM announces A123 won't be supplying the battery for the Volt. Price could take a nice dip and that should be a decent time to buy. Of course, I've never owned a stock in my life so take <strike>any</strike> all of my stock advice with a shaker of salt.
  4. vfx

    vfx Well-Known Member

    Aug 18, 2006
    CA CA
  5. Arnold Panz

    Arnold Panz Model Sig 304, VIN 542

    Apr 13, 2009
    Miami, Florida
    With Wit Capital long out of business, your best bet is to go to your brokerage firm (if you have one) and ask your broker to get you some shares. Every big firm (Merrill Lynch, Salomon Smith Barney, CSFB etc.) should get some allocation of shares for the IPO. Generally, these go to their "best" customers (i.e., the ones with the most money and generating the most fees), but it never hurts to ask, and depending on the sway your broker has, he may be able to get you 100 shares or something.

    It's also possible that E-Trade (which I think ended up buying Wit Capital, which used to provide access to IPOs for the "little guy", especially for high tech IPOs) may get some share allocation. Wit Capital used to do it on a lottery basis, so if E-Trade, or one of the other online brokerages, gets access to some IPO shares, that might be an easier way for a regular Joe (or Flabby) to get in on an IPO.
  6. Serge

    Serge Member

    Jul 24, 2008
    Queens, NY
    A123 Surges in First Day on Electric-Vehicle Demand

    A123 Surges in First Day on Electric-Vehicle Demand
    Quite an impressive influx of money for A123, with IPO, government grants, and all. I hope this quickly translates into mass-commercialization (and corresponding drop in prices) of their tech.

    BTW, I noticed they now advertise a prismatic cell specifically designed for transportation purposes.
  7. Axel

    Axel Member

    Sep 12, 2009
    A123 Goes Public

    Hi everyone,

    Because this is my first post on this forum, I figured I'd give a little intro. I'm a long time Tesla enthusiast, live in Silicone Valley and a college student. I don't own a Roadster at the moment, but it's definitely a long-term goal.

    So that's me, just want to say Hi.

    Anyway, I picked up this story on Reuters the other day.
    Silicon Valley eyes long-awaited IPO resurgence | Reuters

    I don't know how to add quote tags yet, but here's the passage that grabbed my eye:
    "On Thursday, venture-backed lithium-ion car battery maker A123 Systems Inc is set to debut on Nasdaq despite never having made a profit, in a test of how adventurous investors are."

    Stock ticker AONE, I checked and as of tonight they're at $20.29, a nice bounce above the $13.50 offering price. If you want to see their web site it's: A123Systems :: Home

    I couldn't figure out what vehicles they actually provide cells for. Is Tesla one of them? I know the Roadster uses the 18650 cell which A123 lists on their site, so they're at least a possible supplier. It'll be interesting to see who they end up supplying in the future.

    On a side note, their website says they were founded in 2001, real close to the time Tesla was founded.
  8. doug

    doug Administrator / Head Moderator

    Nov 28, 2006
    All Aboard The Battery Boom -

  9. Palpatine

    Palpatine Banned

    Sep 6, 2008
    A123 stock seems very overvalued to me.
    The company sold about $86 million in revenue for 2009 and lost about the same amount.
    For 2010 the analysts are expecting $146 million in revenue, but they are also expecting $75+ million in losses for the year.

    At the current stock price, this company is trading at a valuation of $2.3 billion.

    So even if they meet their 2010 estimated revenue and loss target, the company is trading at 15x revenue !!!

    Not 15x P/E. They are trading at a nosebleed valuation of 15x their revenue and they are losing a fortune.

    I don't see a happy ending here for A123 stock. Their LiFePO4 cells may certainly be high quality. But battery cells are often reduced to commodity prices.

    Also the techology is changing so quickly that it would not be surprising for a new player to leapfrog A123 technology and make it obsolete.

    Just my opinion. I think this story will end badly.

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