A123 Sys Inc Com (NASDAQ:AONEQ)

CAPS Rating: 2 out of 5

The company designs, develops, manufactures, and sells rechargeable lithium-ion batteries and battery systems.

Recs

8
Player Avatar JoeBaggadoenits (94.85) Submitted: 4/7/2011 11:30:34 PM : Outperform Start Price: $5.85 AONEQ Score: -145.03

Warren Buffet recommends buying businesses you understand; with an MS and BS in physics and currently pursing a PhD in materials science, I feel qualified to speak on the technical aspects of A123's product line. I have personally met some of the brain power behind this company and listened to presentations at technical conferences on their technologies, and I believe that the combination of A123's approach to solving the various energy storage problems their customers present along with the quality of the researchers they employ make them the team to beat long term. Their "Nanophosphate" approach to battery design is a very promising technology which I believe offers a slight competitive advantage over the other various layered transition metal oxides used by their competitors, depending to some extent on the desired application.They have a relatively new factory in Livonia, MI with what I understand to be the highest production of Li-ion batteries in the U.S., and demand only looks to increase as federal goals from the DOE and other agencies for automotive efficiency begin to kick in over the next few decades. I don't own any stock in this company yet but plan to buy some soon. Definite Outperform over 5+ years time line.

Report this Post 5 Replies
Member Avatar Battmon (< 20) Submitted: 8/3/2011 4:16:13 PM
Recs: 0

Yes Warren Buffet said stick to business you understand. While I won't argue with you on your understanding of materials science, that is not business that is science. There's also another saying just because Buffet invests doesn't mean you should too.

BTW A123 fell below $4.00 a share 3 days shy of the 4 month anniversary of your post. I'd bet the short.

Member Avatar akenst (82.19) Submitted: 8/8/2011 2:10:54 PM
Recs: 0

At this price ($3.31), I'd buy it now.

Member Avatar BuffettJunior1 (97.65) Submitted: 8/11/2011 3:40:52 PM
Recs: 2

Seems like you understand the science part and not the business part. This company is losing a massive amount of cash each year, that's not a very good business if you ask me.

Member Avatar zman555 (54.72) Submitted: 12/16/2011 5:54:28 PM
Recs: 0

buffetjunior have you ever started a business? Most new companies that are still investing in themselves to grow will lose money for a long time but they will be ready to mass produce product at a cheap rate and be profitable for the long term. Battmon the fact that the price is cheaper is motivation to buy if you see what is happening. Stock got caught in a political crossfire. If your an investor and not a trader this is where you buy imho

Member Avatar BriAsh (52.09) Submitted: 5/4/2012 1:40:04 AM
Recs: 0

The assessment of AONE needs to address how they will financially survive long enough become profitable. If it can do this or is so vital and groundbreaking a research machine that they are bought out by an organization with the resources and financial savvy to make things profitable then this is a decent investment. If Book Value is still $296.37M, buying at little above half book value ($1.2) is tempting, yet one must realize that this may be above the book value by the time they make profit on their own. At 94¢/share, I really wished I had a better understanding of the financials behind this company. I'm thinking that would have been a great move given the chance to trade during an uptick sometime in the next year, and that it sounds like the true skeleton in the closet was actually forgivable (just a very unprofitable failure that went on longer than they wanted to admit publicly).

http://ycharts.com/companies/AONE/price_to_book_value#series=type:company,id:AONE,calc:price_to_book_value,,id:AONE,type:company,calc:book_value_of_equity&zoom=5&startDate=&endDate=&format=real&recessions=false

Featured Broker Partners


Advertisement