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I have an MBA and CFA charter
Those contracts can be voided if the judge deems the contracts would have financial burden on A123.
"Please don't post without any knowledge of the topic"
I assume you are referring to yourself. Either that or you have some kind of insider information, and knows that A123's common shares won't be cancelled, which given the majority of CH 11 cases, is extremely rare. May I ask what your background is? Because if you work in finance related field, I would be embarrassed on your behalf.
Really?? And you're holding this stock since .09? Seriously?? I'm just appalled by the number of people who have no idea what's going on, and is just getting sucked in because of the hypes going around.
This is a CH 11 reorganization, not Ch 7 liquidation. In such case, your BIGGEST risk is common share cancellation and dilution which happens 99% of the time.
Sorry to disappoint you, but I do not hold any position in this stock as I have stated before. Don't be mad just because A123's assets did not fetch $1 bil + like you "hoped" to be.
Monday will be down
The number is very close to what I estimated last week of $300 mil
I'm smelling a lot of negativity on this board today. What happened to the euphoria of yesterday?
Yes, this is a buy on the rumor and sell on the news.
Tuesday will be a down day
1. Please enlighten me as to what evidence you have that supports your "$500 mil - $1bil bid" Because what the public knows so far, the highest bid was $465 mil by Wanx prior to the bankruptcy. Post bankruptcy, we know that Wanx offered $131 mil and JCI offered $125 mil.
2. Please tell me why the value of this company and its assets would suddenly shoot up after A123 filed for Ch 11 bankruptcy according to your "$500 mil - $1 bil bid" logic.
3. Why did no company offer to purchase A123 in EQUITIES if they believed A123 was such an amazing company prior to its bankruptcy?
4. Better yet, why was only 2 companies out of 74 suitors A123 contacted were interested in the company and its assets initially?
5. Now finally ask yourself this, "would you buy a foreclosed house with back taxes at a fair market value"?
Actually, I would like anyone who thinks aoneq will shoot up to answer all those questions above.
The answer to your question has been answered on numerous occasions by different posters on this board.
Since this is a chapter 11 bankruptcy, A123 could emerge from bankruptcy as a viable entity after asset sales and renegotiating with its creditors. As a result, secured creditors and bond holders become the new owners of the shares. Reorganization of the company will lead to cancellation of the existing shares, and lead the common share holders with nothing. Even if the shares are not cancelled, common shares are subject to dilution. This is what happens to 99% of the chapter 11 bankruptcy cases. Now of course there are exceptions like GGP, but it is very very rare. This is why I'm speculating this stock will trade in the range of .05 - .1 for a while and could go down to 2-3 cents. Obviously this assumes that everything goes well and A123 does not go into Chapter 7. Some of you are claiming that A123's assets exceed its debt, while that is true the company is looking to sell its assets and not the entire company thus it filed for Chapter 11 rather than Chapter 7 if the company was insolvent. At this point it would take a miracle for aoneq to get to $0.15+ a share with all the risks that it's shouldering. Another point to think about is why would a company offer $500 mil+ for a bankrupt battery maker when prior to bankruptcy, the max offer was $465 mil by Wanx? Why by going into bankruptcy, GM, GE, Wanx, JCI, etc suddenly value the company a lot higher? Any of those American companies beside Wanx could have snatched A123 prior to bankruptcy for a LOT cheaper. Anyone who thinks A123's assets will be bought out for $1bil+ is just dreaming. An offer of $1 bil+ would put aoneq's market cap at $250mil +, which it hasn't exceeded since last year before all the problems with manufacturing surfaced. Some of the thought process on this board is illogical, and it seems most of you don't even understand basic finance concepts. If you are holding this stock by gut feeling and you don't care about losing money then kudos to you, if you don't want to lose much more money then I suggest you reevaluate your position.
And NO I do not own any position in this stock
This is one of the better posts I have seen on this board all week. Very true about bankrupt companies. Aoneq at this point is nothing but a huge gamble. It is unwise to buy and hold this stock without access to some kind of insider information.
.55 is just a dream he had last night. Even if Wanx were to keep its original offer of $465 mil, that offer is in secured debt and not equities. No way Wanx will convert those into equities. I would assume majority of the posters here have no clue about corporate finance or have any background in finance judging from the ridiculous posts and pumping going around here.
This thing will close below .06 today, and will settle in the range of .05 - .06 for the next week or so before rising to .07 and then tank again to sub .05
But I'm sure all you bargain hunters, gamblers, and wannabe millionaires will keep buying right?
You are quite right lionmaker, these people are just pulling $1 bil, $2 bil, $3 bil with PPS target of $1- $2 out of their rear-end. I guess it's something you can only do when you are down quite a lot of money, and is trying to "average down" by buying more each time it drops. BTW Stockjockey's estimates are based on what Wanx offered PRIOR to A123's bankruptcy, when it offered $465 million in secured debt in exchange for 80% of the ownership. $650 mil - $750 mil is just him fantasizing. Wanx actually made a bid of $131 mil for all of A123's assets except military contracts AFTER A123 filed for Ch 11, so lionmaker is actually closer to the truth than stockjokey. Check WSJ. And no I'm not trying to force anyone to sell, it's just funny that a lot of you only see the positive side of aoneq.
You should load up more shares as aoneq will go down more, and you can get a "bargain" price.
On another note, to those who claim Wanx will bid $1 bil + is dreaming. No company is stupid enough to pay that much to what you all speculate to be "valuable" technologies. Btw, Wanx made a bid of $131 mil back in November for all of A123's assets except for the military contracts. JCI made an offer of $125 mil so that it can practically get A123's assets for free by drawing the remaining $120 mil in grants. Please do not expect the final sale price of its assets to be greater than $300 mil.
A123 will be bought out for $10bil and pps will go to $100.
source: magic 8 ball
John Petersen's article back in November is a spot on as to why shareholders will be left with nothing.
http://seekingalpha.com/article/968231-why-a123-systems-is-a-sucker-s-bet
It would be ludicrous to believe that Wanx will pay anything to the shareholders even if somehow they were able to overcome the hurdles of CFIUS and the Obama administration. Just ask yourself this, if you were in Wanx's position would you contribute any equity capital to a bankrupt compnay? Would you convert any secured debt into equities?
I'm sure most of the people on this board know the situation is not in their favor, that's why we see a lot of "pray, hope" on this board.
To those who are browsing this board, and thinking why a lot of these guys who are losing money are still fist pumping this stock.
Here is your answer: http://www.msnbc.msn.com/id/35259799/ns/health-addictions/t/why-do-losers-keep-gambling-brain-blame/#.ULuLT4YY_5Q
So if you are losing money on this stock, its time to cut your losses and move on. Stop hoping that you will double or triple your money on this. There will be plenty of opportunities to re-enter after the auction. You don't wanna be a gambler like those in the article.
1. This stock will not go above .50
2. You will have plenty of opportunities to load up on its way down to 0
I almost guarantee you all Wanx will not get their hands on A123's assets. If it was the case, their offer of 80% stake in the company would have gone through this past summer. A123 themselves have said the government approval process is too long and they would much prefer to sell their assets to JCI. Wanx even wanted to delay the auction so they can get governmental approval that they need.
In order for Wanx to buy A123's assets
1. They would need approval from Timmy Geithner, which Timmy will unlikely approve
2. Even if Timmy approves the deal, Obama can still veto the decision
3. Those who says it's up to the judge and "judicial oversight" is clueless. Obama has the power to veto when it comes to prohibiting a transaction to safeguard national security.
4. The fact that we are nearing the auction, and have not heard the status of CFIUS is not looking good for Wanx
Some of you are claiming that if U.S. government did block the deal, there will be serious political implications. That is laughable. Just to give you all an example, Ralls Corp a Chinese company recently wanted to buy a land near Oregon close to where U.S. Navy training facility in order to build a wind farm. CFIUS blocked the transaction, and the Chinese challenged CFIUS's decision. Obama then issued an executive order which shut down Ralls Corp's any hope of buying the land.
You do know that even if A123 emerges from CH 11 bankruptcy, it is most likely that your common shares will get cancelled and new shares will issued in place right?
There are too many misinformation on this board. I could have registered, and misled you all with "aoneq buy of a life time! This stock is going to soar with so many interested bidders!" And a lot of you would probably believe it too. But the fact of the matter is this stock is NOT UNDERVALUED. This is a company that filed for Ch 11. Those of you who are holding this stock is doing so purely out of speculation as to what you hope would happen next. To put it simply, you are a gambler at a blackjack table betting that you would hit a blackjack on your next hand.