Stock Alert: AONE Rebounding?
Only one day after A123 Systems, Inc. (NASDAQ:AONE) alerted that they had a miss in debt payments and they could be heading for restructuring under Chapter 11, but this morning AONE is showing a little life. The stock rocketed 48% to $0.0815. Don’t be fooled by this rebound and remain cautious. Keep in mind that AONE had fallen 85% over the past few trading sessions which led to the company filing for bankruptcy protection and sold the company’s automotive assets due to the weak sales of electric cars. AONE has not posted a profit and has had 12 straight quarterly losses including the second quarter of a lost of $83 million. It was only 2 months ago that A123 Systems, Inc. announced that Waxiang Group Corp gave them a $450 million lifeline, which is now over. The bankruptcy filing may not be such a bad thing for the company and it could turn A123 into a more attractive investment. According to The Chinese company, the nation’s biggest auto-parts maker, they are still interested in taking over A123 because the court proceedings would clear out legal risks, Ni Pin, president of Wanxiang Group Corp.’s U.S. operations.
What is A123 Systems, INC (AONE)
A123 Systems, Inc. (Nasdaq: AONE) was founded in 2001, the headquarters is in Waltham, Mass and employs more than 2,400 people across the world. The company develops and manufactures advanced Nanophosphate® lithium iron phosphate batteries and energy storage systems that deliver high power and energy density, long life, and excellent safety performance. The company’s goal was to use their game-changing technology to enable customers to commercialize innovative products for the transportation, electric grid, commercial and government markets.
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