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Stuck in neutral at .0032?
Tomorrow EOD will be new low.
Once PPS holds .25, we're as good as gold....
Heading south fast again... Get ready for major dumpage.
Nah, sell now & be left out in the cold when more news is here.
Day Low = 0.0045
Holy bloody massacre, Batman!
Leg up?
Nokia Royalty Will Delay Vringo's Profits
Vringo would have to gross more than double the purchase price of the new patents purchased from NOKIA just to break even, an additional $22.8 million, if it hires lawyers on a one-third contingency .
http://seekingalpha.com/article/808951-will-vringo-s-22-million-patent-purchase-pay-off?source=email_rt_article_readmore&ifp=0
How LOW can it go?
Screaming Buy. This is a RED HOT company. They are talking about it right now on NPR, WBUR Boston, "On Point" show, as the next new green energy technology. Company in a heated political debate and this company is definetly IN DEMAND!!!! China feels that this Company has the secret in getting the cost down in making lithium ION batteries. Investment by China will SAVE JOBS, and therefore deal will go through!!!
http://onpoint.wbur.org/2012/08/13/battery-technology
EOD burst on its way, IMHO.
This will generate gobs of news over weekend since it is now becoming a heated political issue (see below article). Will GAP UP big time on Monday. Time to get in is today.
Republicans assail battery maker’s deal with China:
http://www.boston.com/business/articles/2012/08/10/a123_systems_deal_with_chinas_wanxiang_draws_fire_from_republicans/
China Deal to Acquire U.S. Battery Maker is Just the Beginning:
http://blogs.wsj.com/chinarealtime/2012/08/10/china-deal-to-acquire-u-s-battery-maker-is-just-the-beginning/
Just the Beginning: China Deals of U.S. Acquisitions
August 10, 2012, 7:28 PM HKT
China Deal to Acquire U.S. Battery Maker is Just the Beginning
By Michael Dunne
As the script now reads, Wanxiang — China’s largest auto parts maker — plays the role of a clever opportunist in the unfolding tragedy of American competitiveness.
Here is an excerpt from the most recent episode:
A leading American maker of batteries for electric vehicles, A123 Systems, secures hundreds of millions of dollars in grants from Washington D.C and the State of Michigan.
Jeffrey Sauger/Bloomberg News
A123 Systems, recently offered a $450 lifeline by China’s Wanxiang Group, makes lithium-ion car batteries at this plant in Michigan.
A123 quickly earns awards for both its innovative culture and its technical advances. But before long, the company encounters business difficulties, faces imminent bankruptcy and scrambles for money.
Wanxiang arrives with fistfuls of cash, takes control of A123 and inherits some of the world’s most advanced battery technology. Wanxiang is further encouraged as policy makers in Beijing promise $10,000 rebates to Chinese electric car buyers. The future is bright.
It is fair to say that Wanxiang, a private company based in Zhejiang, has broken no rules. Wanxiang sees a straight-up business deal in which it pays market price for a cash-starved company that is on the verge of failure.
However, what many American taxpayers see is bad business, a sham. And they sense a deeply troubling pattern for the future: America develops technology – subsidized with generous tax dollars – only to see it purloined, borrowed or, in this case, purchased on the cheap by firms from competing nations.
How can America possibly sustain its culture of innovation when assets are so vulnerable to cherry picking by cash-rich Chinese companies? This issue — not last month’s unemployment rate — should be the central issue as the U.S. tries to decide who will be its president for the next four years.
Autos are one industry where China is feeling especially dauntless these days. The country wants to become the car factory for the world and Chinese auto companies are hunting worldwide for advanced technology.
In 2009, Beijing Auto quietly made a strategic purchase of Delphi’s world-class chassis and suspension company in Brighton, Michigan, just north of Detroit. Shanghai Auto invested $500 million for a 1% share in GM in 2010. Now, Wanxiang aims to own A123 Systems.
With four auto companies already in the Fortune 500, China clearly has the money. Chinese companies will continue their acquisition of prized American assets in more industries. This is just the beginning.
Both President Obama and Governor Romney need to tell the American people exactly how they will eliminate this pressing threat. If we go by their histories, neither man gives us confidence that he has the answers.
The Obama Administration was sloppy to splash so much money — $249 million — on a technology firm without thinking through the possible business outcomes. A standard due diligence would have looked not only at the strength of the battery technology, but also the commercial viability of selling the batteries to car makers. As we know, this wrong call on a technology company is not a one-time mistake by Mr. Obama.
Mr. Romney, on the other hand, should not waste time underlining how Obama messed up on A123. Americans know that already.Given his record at Bain Capital, one could not be blamed for thinking Romney might even view the Wanxiang takeover as “just business.” What Americans want to hear is whether he has a plan to encourage and defend American innovation that will produce more jobs over the long term.
For two decades, China has thrived on its ability to manufacture at low cost. That era is coming to a close. Now China has set it sites on technology leadership, which is a direct challenge to the United States. If China continues to secure American technology this easily and cheaply, what is left in the American playbook? Large swathes of manufacturing have already migrated to China. Is America prepared to see its technology go down the same path?
America cannot change China. But America must change the way it deals with China. American presidential candidates have a choice: Hope that China will some day listen to American speeches on free trade and even playing fields. Or, much better, declare that so long as China plays only by its own rules on trade, market access and currency value, America will reciprocate with a set of special policies to defend American economic interests, including the purchase of America’s crown jewels.
Without this kind of forthright leadership, innovation will die. And without innovation, America will, well, no longer be America. Maybe, just maybe, Wanxing, the clever opportunist, will trigger an overdue awakening in American leadership.
Michael Dunne is president of Dunne & Company, a Hong Kong-based consultancy specializing in Asian car markets, and a leading expert on China’s auto industry. He does or has done consulting work in China for Audi, Mercedes-Benz, General Motors, Acura and Ford, and is the author of “American Wheels, Chinese Roads: The Story of General Motors in China.” Follow him on Twitter @DunneCarsAsia
http://blogs.wsj.com/chinarealtime/2012/08/10/china-deal-to-acquire-u-s-battery-maker-is-just-the-beginning/
Thanks CNBC!!!
Zoom, Zoom, Zoom!!!
Settlement hearings still pending. More lawsuits will be on the way with the acquisition of the new patents from Nokia. The $100k settlement from AOL is ONLY a partial settlement. Transcript of the CC will be made available.
The power of the Markman decision has already been demonstrated with AOL's partial settlement and will affect the Google outcome in a like way, upcoming earnings are irrelevant.
The potential settlement from this case far outweighs any losses this company will encounter in the upcoming reporting quarter.
Rain must have sold and is now trying to create his re-entry point by passing around negativity, lol.
Forbes Article Revised (book value $1.27 a share)
A123 Deal with China's Wanxiang Would Value Stock at $0.55 a Share
Tom Konrad, Contributor
TECH | 8/08/2012 @ 11:24AM |107 views
It was no secret that A123 Systems (NASD:AONE) was desperate for money. It’s also no secret that Chinese companies are interested in buying Western companies, especially when they can acquire useful technology in the deal. So this morning’s announcement that Wanxiang Group Corporation, a Chinese largest autoparts manufacturer which has significant US operations, had signed a non-binding memorandum of understanding to invest up to $450 million in A123 through a combination of bridge loans, convertible notes, and warrants seems like good news for both companies.
A123's stock rallied initially on the deal, but has since fallen back. As I write, the stock has fallen back to $0.48, up only one cent from yesterday’s close. The lack of gain puzzled me, especially since A123's liquidity problems are the main reason it’s been trading at it’s current depressed level at 37% of book value ($1.27 a share.)
Assuming regulatory approvals are met, it seems likely to me that this deal will go through, and I expect Wanxiang will probably make the whole investment. After all, this investment for Wanxiang is almost certainly about acquiring A123's technology and business contacts at a discount, not about short term cash flow. Weiding Lu, CEO of Wanxiang Group, said,
A123 offers industry-leading technology for vehicle electrification and grid-scale energy storage, as well as strong manufacturing and systems engineering capabilities in Michigan and Massachusetts. We think this creates important synergies with Wanxiang, which has been involved in this field for 12 years and has strong R&D and manufacturing capabilities in China, especially as we continue to expand on our strategy of investing in the automotive and cleantech industries in the U.S. This MOU is the first step toward a longer-term agreement through which we plan to build on the foundation A123 has established in the U.S. and help expand the company’s capabilities both domestically and internationally, which we believe would create long-term value to the customers, investors and other stakeholders of both companies.
Since I think Wanxiang is likely to make the full investment, I think the price they are likely to pay is a good short term target for AONE stock. As long as the stock is lower than that, Wanxiang will have an incentive to buy the stock on the open market, rather than exercising their option, which should provide price support.
Reading the details of the release, $75 million of the investment is to be a short term bridge loan, which does not involve the purchase of A123 stock. The rest is to consist of $200 million in convertible notes (which can become stock) and $175 million which might be invested in the exercise of warrants. An exercise of all these warrants and the full conversion of the convertible notes would result in Wanxaing controlling 80% of the company, or about 608 million shares, based on the 170 million shares A123 had outstanding at the end of July. Doing the math, and assuming that the initial $75 million bridge loan used to purchase shares, that’s 55 cents a share.
The current price of $0.48 makes a certain amount of sense, but unless this deal is blocked, Wanxaing has indicated its interest in buying A123 at $0.55 a share, which should put a nice floor under the share price, along with a lot of potential upside as the deal gives A123 new financial stability to execute on existing opportunities and tackle new opportunities in China.
Given all that, I just bought a little A123, which I expect to rally as the various barriers to this deal are overcome. It’s still a small investment, since there is still no guarantee that the deal will go through, and if, for some reason the deal does not go through, AONE will almost certainly continue it’s slide.
Disclosure: Long AONE
http://www.forbes.com/sites/tomkonrad/2012/08/08/a123-deal-with-chinas-wanxiang-would-value-stock-at-0-77-a-share/
Forbes Article Salvaged
A123 Deal with China's Wanxiang Would Value Stock at $0.77 a Share
Tom Konrad, Contributor
It was no secret that A123 Systems (NASD:AONE) was desperate for money. It’s also no secret that Chinese companies are interested in buying Western companies, especially when they can acquire useful technology in the deal. So this morning’s announcement that Wanxiang Group Corporation, a Chinese largest autoparts manufacturer which has significant US operations, had signed a non-binding memorandum of understanding to invest up to $450 million in A123 through a combination of bridge loans, convertible notes, and warrants seems like good news for both companies.
A123's stock rallied initially on the deal, but has since fallen back. As I write, the stock has fallen back to $0.48, up only one cent from yesterday’s close. The lack of gain puzzled me, especially since A123's liquidity problems are the main reason it’s been trading at it’s current depressed level at 37% of book value ($1.27 a share.)
Assuming regulatory approvals are met, it seems likely to me that this deal will go through, and I expect Wanxiang will probably make the whole investment. After all, this investment for Wanxiang is almost certainly about acquiring A123's technology and business contacts at a discount, not about short term cash flow. Weiding Lu, CEO of Wanxiang Group, said,
A123 offers industry-leading technology for vehicle electrification and grid-scale energy storage, as well as strong manufacturing and systems engineering capabilities in Michigan and Massachusetts. We think this creates important synergies with Wanxiang, which has been involved in this field for 12 years and has strong R&D and manufacturing capabilities in China, especially as we continue to expand on our strategy of investing in the automotive and cleantech industries in the U.S. This MOU is the first step toward a longer-term agreement through which we plan to build on the foundation A123 has established in the U.S. and help expand the company’s capabilities both domestically and internationally, which we believe would create long-term value to the customers, investors and other stakeholders of both companies.
Since I think Wanxiang is likely to make the full investment, I think the price they are likely to pay is a good short term target for AONE stock. As long as the stock is lower than that, Wanxiang will have an incentive to buy the stock on the open market, rather than exercising their option, which should provide price support.
Reading the details of the release, $75 million of the investment is to be a short term bridge loan, which does not involve the purchase of A123 stock. The rest is to consist of $200 million in convertible notes (which can become stock) and $250 million which might be invested in the exercise of warrants. If the (...article ended here prematurely)
http://www.forbes.com/sites/tomkonrad/2012/08/08/a123-deal-with-chinas-wanxiang-would-value-stock-at-0-77-a-share/
Deal with China's Wanxiang brings $0.77/share value. Very likely to go through. See Forbes article:
http://www.forbes.com/sites/tomkonrad/2012/08/08/a123-deal-with-chinas-wanxiang-would-value-stock-at-0-77-a-share/
Buy on dips. Will close above $4.
8-k filed 7-31-12, Joint Development and Marketing Agreement entered into Between EarthSearch Communications and Tom McLeod Software Corp
"ECSI and McLeod shall collaborate on the development of an interface (the “Integration Module”) that will permit McLeod’s proprietary LoadMaster® dispatch software to receive and utilize a data feed from ECSI’s proprietary LogiBoxx and GATIS cargo tracking systems. McLeod shall be responsible for designing and developing the Integration Module together with supporting user documentation for each platform, operating system, or computing environment supported by McLeod for its software (“Deliverables”)."
http://www.thehotpennystocks.com/Stock-Quotes/stock-data.aspx?stock=ECDC&a=showFilings
http://www.thehotpennystocks.com/Stock-Quotes/stock-data.aspx?stock=ECDC&a=showFilings
This stock reminds me SOMX, look where it wound up after getting their FDA approval.
Rut ro, so much for the wall street bell honors this morning.
Get ready to bounce.
Confuscious
Saturday, July 28, 2012 2:37:21 PM
Re: Justin post# 42603
Post # of 42624
READ!! True ECDC PPS AND Valuation. Stock is UNDERVALUED
I strongly believe the PPS realistically should be in .02 AND .05 RANGE AND HERE IS WHY!
In sub penny space valuation is based on PPS. (thanks to day traders) Out of sub penny valuation is based on revenue or balance sheet. (10X multiplier).
So if you look at estimated B/S, about 2.5ml to $3.5ml is my guess. So we are looking between $25ml to $35ml in true valuation. (Using 10X multiplier) Put that against 1BL O/S and we have a true PPS of between .025 and .035
Do the same math for revenue and you come up with same number. If i understand it correctly, revenue as of 6/30 is around $1ml, it should be safe to say we will end up around $2.5ml for the year use a 10X multiplier and you have $25ml put is against 1bl outstanding (assuming we have 1bl outstanding) and you have a .025 PPS (This stock is undervalued)
I don't disagree with you on R/s strategy. What I meant to say was that they need to get this thing to about .02 - .05 and do a 5 to 1 Reverse, this will take the stock to anywhere between .10 and .25. Several things will happen immediately:
1. It will eliminate a lot of day traders
2. We will see MM do less shorting Penson will provide clearing therefore bringing a lot of new brokers and traders into the play which would increase the number of eyes on the stock
4. This will help the PPS be more stable
5. We will see better and more stable trading patterns
So in my view the fight is between .02 and .05. so people stop bashing the CEO. Stock price has nothing to do with dilution. it is shorts and paid commentators running the trading boards with negative comments.
I hope the company will go out and get a independent research firm to do a research report, it will confirm my points.
I think you are being a bit pessimistic. Bankruptcy? Hardly. Big profits will arrive in September already. PPS has nothing to do with the health and outlook of the Company. Rather, it typically reflects peoples sentiments and emotions for that point in time. The true value PPS of this stock should be around .20, therefore it is undervalued and a hell of a buy at these rock bottom prices.
Buy more and price average it down, or hold it until it comes back up again! Oh, one other option - sell and take loss.
Student Connect; $2M in revenue a day through sponsored advertisers and that's just in the Atlanta area. Area for growth in revenues; in other cities will make this a phenomenal income producer for the company.
Amen, brother! The updates yet to come send this way higher, tomorrow.
Sorry, but last chance for cheapies. Getting ready for lift-off. Big-time!
"like finding a biotech diamond in the rough" ....great article! Thx.
Better yet, think POTENCIA!! Get it? The Company's energy shot.
There was a promotional alert put out over the weekend, most likely which was not paid for by the Company, that accounted for Monday's rise. Unfortunately, it appears to have been sort-lived.
Volume drying up since no further EU word yet. PPS may test .0015 again in next couple of weeks if this continues.
Fall down, go boom.