China BAK Battery, Inc. (CBAK)

[Ecomike]

DD and Investing in any stock should include knowing what is going on in the entire sector the company operates in, and with the companies competitors. Today, there was a bit of an earthquake in the world of high tech batteries, and CBAK makes high tech lithium iron phosphate batteries.

Seems a major automotive China firm offered 450 million dollars (in a complex deal) to buy up to 80% of the US DOE, GE,....Lithium Ion iron phosphate battery giant darling, AONE that just went public not so long ago, and is already nearly bankrupt already.

IIRC their core technology came out of the MIT University labs not so long ago, but CBAK and two others in China already seem to be making a very similar lithium iron phosphate batteries (or electrodes in the case of CSGH, who supplies CBAK) in China.

I have no idea at this point how this will turn out, or if it might affect CBAK, but it will bring a huge bunch of attention to the sector now.

Here are some links I have already found on the news:

http://online.wsj.com/article/SB10000872396390443991704577576881949308486.html?ru=yahoo&mod=yahoo_hs

http://ir.a123systems.com/releasedetail.cfm?ReleaseID=699094

http://www.forbes.com/sites/tomkonrad/2012/08/08/a123-deal-with-chinas-wanxiang-would-value-stock-at-0-77-a-share/

http://www.forbes.com/sites/boblutz/2012/08/08/a123-goes-chinese-will-washington-learn-it-cant-mandate-a-market/?partner=yahoofeed

There may be more detailed info on the Ihub chat room, that is where I got these news links.

I am curious what others think this might all lead too, short term and long term.