Electric Car Battery Company Struggles
Modern Energy Roundup - May 15, 2012
A123 Systems (NASDAQ:AONE) has announced Q1, 2012 results. . .
Revenue fell 40% from $18.1 million in Q1, 2011 to $10.9 million. Net loss came in at $90.8 million, compared to a net loss of $53.6 million last year, and as of March 31, the company has $113.1 million in cash and cash equivalents.
I don't know a single person who was expecting to see anything positive coming from Q1. This stock, despite a lot of early optimism, has been getting crushed since early 2010. Sure, traders have been having a field day with this one. But those who initally thought AONE was a good long-term play left the building last year.
To be honest, it's unfortunate AONE has had such a rough go at it. Certainly I applaud any group of individuals with the stones to launch an energy storage company on US soil.
Besides intense competition from already established companies working in this sector, like Johnson Controls (NYSE:JCI) and EnerSys (NYSE:ENS), developing disruptive technology in this space is a costly, and extremely risky proposition. And of course, any young company looking to help develop next-generation electric vehicles is just asking for an avalanche of criticism from naysayers, partisan slaves and crotchety old bastards who still haven't figured out that supporting electric car development is actually a patriotic endeavor. I definitely expect those dolts to pump out a few op-ed pieces this week highlighting the $249 million grant AONE got from the government.
Regardless, when it comes to making wise investment decisions, none of this matters. You know the deal – never get emotional. And while I would love nothing more than to see AONE succeed, in this market environment, I have to continue watching this one from the sidelines. Although it will be interesting to see how it does throughout the day. The stock headed north at the open, climbing around 6 percent in the first 10 minutes of trading.