Concerns over A123's viability

[jdbauman]

I came across this headline while searching for news on battery technology. I would be totally bummed, now that we seem to be getting some access to these cells.

Jerry

A123 sees "going concern" risk due to steep losses

(Reuters) - Lithium-ion battery maker A123 Systems Inc (AONE.O) said on Wednesday there was "substantial doubt" about its viability because the company expects to burn through cash and report steep losses over the next several quarters.

Read the complete article here...

http://www.reuters.com/article/2012/05/30/us-a123-goingconcern-idUSBRE84T1LE20120530

 

[Jason27]

A123 has 3 major problems right now.

1. They have been having problems with faulty batteries coming from their michigan plant. several recalls

2. knock off batteries from china.

3. slow ev sales and demand

 

[chuckufarley]

I think all the bad press is a crock....as soon as they get ahold of some of the solar and wind market and work out the bugs and the technology's usefulness is realized by the power distributors they will take off.....I'm going to buy some stock personally ...while it's still cheap.

 

[Jason27]

Have any green companies actually made a profit? It seems all the major companies are taking a loss or are in bankruptcy.

 

[totinen]

I'm going to buy some stock personally ...while it's still cheap.

Dont invest more many than you are willing to lose.

 

[deVries]

A123 is like biotech incubator companies married to and supported by huge pharmaceutical company sponsors. As long as A123 keeps getting cash infusions or financing from bigger companies, then it will limp along till the market buys into EV or not. My "analysis" is capacity must double by density for almost same volume/weight for EV to even make-it long-term. It needs to happen within 4-7 years. If prices would drop in half within a year, then volume sales should support the technology until doubling of capacity within 4-7 years.

If prices don't keep dropping to capture volume sales, then their marketing plan is doomed, IMO. Only dominance by a "parent company" would save them with cash infusions & high prices, or a takeover from bankruptcy is sure to happen.