Tuesday, June 19, 2012

CBS savages A123 on Sunday Evening News on 17 June 2012

See link Electric car battery company hits road bumps

But, on June 18, 2012, we have Why A123 Systems' Shares Jumped

Meanwhile Sean Williams wrote:

Spending even more when you admit your cash flow is deeply negative is a strategic alternative? I was unaware that corporate suicide was a business tactic. I definitely must have missed that day in my economics classes back in college.

Sarcasm aside, times are very dire for A123. It may have a breakthrough technology, but it has proved time and again that it doesn't have the ability to see its projects through. Its technology might be useful for Tesla Motors (Nasdaq: TSLA ) , whose Model S is readying to hit the market. I'm still concerned about whether Tesla can really monetize its EV idea, but A123's batteries, if effective, could knock down Tesla's costs to the point where it could actually be profitable -- something I thought I'd never see. Johnson Controls (NYSE: JCI ) is another company that could benefit from A123's technology, as it produced nearly $1.1 billion in operating cash flow in the trailing-12-month period -- more than enough to handle the hiccups associated with bringing new technology to market.


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