Post by jeffolie on Aug 8, 2012 11:26:48 GMT -6
US to be Chinese battery maker A123
Chinese wheeler dealers had a field day when last years they took over US corporations with stock exchange listings, then " pumped and dumped" these ... this year investors have shied away from Chinese stocks mostly because their books are frauds which do not have US accounting blessings.
Below, I wonder if another such similiar result will happen as investors examine the 'new life' of A123 troubled electric car battery maker ?
Please do a deep examination of this stock if you are thinking of buying the stock because it owes a lot of money for recalled bad batteries.
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[The Truth About Cars Blog]
A123 Becomes Chinese – Faster Than Imagined
August 8, 2012
Troubled battery maker A123 is getting another lifeline. This time, from China. Wanxiang Group will invest as much as $450 million in the company, says Reuters. Wanxiang, one of the largest Chinese auto component makers. A123 will soon be Chinese.
A123, which received a $249 million grant from the Obama administration as part of a program to develop advanced lithium-ion batteries, said last month that it only had four or five months until its money would run out. A123, which had big plans for the EV industry, reported a second-quarter net loss of $82.9 million on $17 million revenues. Does not sound like the best business. Wanxiang seems to have a different perspective. Says the Wall Street Journal:
“The proposed agreement includes plans for Wanxiang to obtain convertible notes and warrants that if fully exercised could give it an 80% stake in A123. The deal is expected to close by year’s end.”
When we reported about AS123’s cash crunch, TTAC correspondent Jellodyne said:
“Romney would have closed ‘em down, sold the parts (to overseas companies) and bought the batteries from China. That’s just good business sense.”
www.thetruthaboutcars.com/2012/08/a123-becomes-chinese-faster-than-imagined/
Chinese wheeler dealers had a field day when last years they took over US corporations with stock exchange listings, then " pumped and dumped" these ... this year investors have shied away from Chinese stocks mostly because their books are frauds which do not have US accounting blessings.
Below, I wonder if another such similiar result will happen as investors examine the 'new life' of A123 troubled electric car battery maker ?
Please do a deep examination of this stock if you are thinking of buying the stock because it owes a lot of money for recalled bad batteries.
===================================
[The Truth About Cars Blog]
A123 Becomes Chinese – Faster Than Imagined
August 8, 2012
Troubled battery maker A123 is getting another lifeline. This time, from China. Wanxiang Group will invest as much as $450 million in the company, says Reuters. Wanxiang, one of the largest Chinese auto component makers. A123 will soon be Chinese.
A123, which received a $249 million grant from the Obama administration as part of a program to develop advanced lithium-ion batteries, said last month that it only had four or five months until its money would run out. A123, which had big plans for the EV industry, reported a second-quarter net loss of $82.9 million on $17 million revenues. Does not sound like the best business. Wanxiang seems to have a different perspective. Says the Wall Street Journal:
“The proposed agreement includes plans for Wanxiang to obtain convertible notes and warrants that if fully exercised could give it an 80% stake in A123. The deal is expected to close by year’s end.”
When we reported about AS123’s cash crunch, TTAC correspondent Jellodyne said:
“Romney would have closed ‘em down, sold the parts (to overseas companies) and bought the batteries from China. That’s just good business sense.”
www.thetruthaboutcars.com/2012/08/a123-becomes-chinese-faster-than-imagined/