Laize
14 years ago
Warren Buffett would be pleased with this company.
This is a great company at a rock-bottom price. A buy I'm sure even Warren Buffett would love if it stood to make him any noticeable amount of money.
Their Q1 report came out with revenue 12% higher than their Q1 from last FY. Despite having to pay out a *FULL* 16.7% of their net revenue to the former officers who left, they still barely lost any money this quarter. Without that payout (or the tax benefit that resulted from it) their net income would've been approximately $9-$10 million, which would have exceeded analyst expectations. However right now all any of the sheep see is that they lost $211,000 this quarter and didn't look at WHY they lost it. Instead of being reasonable, people panicked.
Also considering their new research arm and loan service, their revenue will increase considerably by the end of Q2. They're also still keeping feelers out in the M&A market which, if they begin advising, would be a massive increase in revenues. I'd suggest getting it now while it's at rock bottom.
madtony
14 years ago
Three Bank Stocks With More Reward, Less Risk
10/19/09 - 05:12 AM EDT
BOSTON (TheStreet) -- Earnings reports last week from Bank of America(BAC Quote), Citigroup(C Quote) and JPMorgan(JPM Quote) revealed that the banks' main business -- lending -- was still saturated with risk.
Financial-services companies that don't deal in loans and mortgages have fared better. TheStreet.com's "Under the Radar" series has picked some lesser-known winners, including investment bank Stifel Financial(SF Quote), up 30% since our June 1 article, and Broadpoint Gleacher (BPSG Quote), up 38% since our Aug. 3 story.
Here are three overlooked financials due for a boost. Each receives a financial-strength score of 7 or higher, matching the "buy"-list average, but is cheaper than its peer group, offering investors more profit per dollar invested.
Pittsburgh-based Federated Investors(FII Quote) is an investment manager that sells mutual funds and separately managed accounts. The company has $402 billion in assets under management, making it one of the country's largest money managers.
Federated's second-quarter net income fell 9% to $53 million and earnings per share dropped 4% to 52 cents, cushioned by a lower share count. Revenue slipped 1% to $307 million. Federated's gross margin shrank from 32% to 30%, and its operating margin decreased from 30% to 29%.
Federated is 57% cheaper than asset-management peers based on trailing earnings and 22% cheaper based on projected earnings. The shares have rallied 53% this year, outpacing major U.S. indices. The stock pays a 3.6% dividend yield, with a safe payout ratio of 49%. Federated reports third-quarter results after the close of the stock market Oct. 22.
Knight Capital(NITE Quote) is a Jersey City, New Jersey-based capital-markets firm that specializes in thinly traded securities such as OTC Bulletin Board stocks. The company is enjoying steady improvement in trading volume, based on share volume and dollar value.
Its second-quarter net income grew 21% to $36 million, and earnings per share climbed 41% to 52 cents. Revenue surged 65% to $314 million. But Knight's gross margin fell from 34% to 29%, and its operating margin dropped from 31% to 26%.
Knight is 66% cheaper than brokerage peers based on trailing earnings and 24% cheaper based on projected earnings. The stock has rallied 38% this year, more than major U.S. indices. The company doesn't pay dividends. Knight reports third-quarter results before the stock market opens Oct. 21.
New York-based W.P. Carey(WPC Quote) is a real estate investment, management and advisory firm that deals mainly in commercial properties. It earns revenue as an adviser to affiliated real estate investment trusts, or REITs.
W.P. Carey's second-quarter net income dropped 25% to $15 million, and earnings per share declined 10% to 37 cents, cushioned by a lower share count. Revenue fell 5% to $55 million. Its gross margin narrowed from 75% to 70% and its operating margin shrank from 38% to 31%.
W.P. Carey is 51% cheaper than asset-management peers based on trailing earnings and 6% cheaper based on projected earnings. The shares have rallied 26% this year, more than the Dow and S&P 500 Index. W.P. Carey pays a 6.8% dividend yield, but has an unsafe payout ratio of 110%. The company reports third-quarter results before the stock market opens Nov. 5.
-- Reported by Jake Lynch in Boston.
http://www.thestreet.com/story/10612966/1/three-bank-stocks-with-more-reward-less-risk.html
madtony
15 years ago
A123 Systems: A Matter of Demand
09/25/09
The success of A123 Systems (AONE Quote), which had an extremely successful IPO this week, will depend on how big the market for electric-car batteries will be and how much competition the company faces.
On the end-user side, data show that the number of EV (electric vehicle), HEV (hybrid electric vehicle), PHEV (plug-in hybrid electric vehicle) models with an annual production run of at least 20,000 vehicles will grow from 19 models in 2009, to more than 150 models in 2014, and more than 200 models in 2019.
In addition, estimates for the global lithium-ion battery market for automotive application in EVs, PHEVs and HEVs are $31.9 million in 2009 growing to $21.8 billion by 2015 and $74.1 billion by 2020.
After spending most of the day in negative territory, shares of A123 managed to close higher, finishing at $19.63, up 3 cents, or 0.15%, following a debut Thursday that saw the shares rise more than 50%.
A123 uses proprietary nanoscale material technology developed at and licensed from the Massachusetts Institute of Technology. It is also has its 215 employees for R&D on new generations of this core nanophosphate technology. A123 recently developed an ultra high-power battery for the Vodafone McLaren Mercedes team that provides more than 10 times the W/kg (watt hours per kilogram) as compared to a standard Prius battery.
Clearly, the market potential of lithium-ion batteries for automobiles is huge. But cost is a critical factor, and, as they are a new product, so is durability. In a report released in January 2009, the U.S. Department of Enegy pointed out that the current cost of Li-based batteries is approximately a factor of 3-5 too high on a kWh (kilowatt hours) basis for HEVs, and two times too high for HEVs. Also, the ability to attain a 15-year life, or 300,000 HEV cycles, or 5,000 EV cycles are unproven and anticipated to be difficult.
A123 Systems competes in the Li-ion battery space with companies such as Advanced Battery Technologies(ABAT Quote), Altair Nanotechnologies(ALTI Quote), China Sun Group(CSGH Quote), Ener1(HEV Quote), Hong Kong Highpower Technology(HPJ Quote), and Valence Technologies(VLNC Quote).
A123 Systems, with its lithium-ion technology, also competes with advanced lead-acid battery (lead carbon) producers like Axion Power International (AXPW.OB Quote), C&D Technologies(CHP Quote), Enersys(ENS Quote) and Exide Technologies(XIDE Quote).
Let's not forget the NiMH (nickel metal hydride) battery. ECD Ovonics (ENER Quote) has licensed its battery technology to every major manufacturer of NiMH batteries, all 35 of them. It's a market projected to be $1.23 billion for HEVs in 2011 compared with a $320 million market for automotive Li-ion batteries.
http://www.thestreet.com/story/10603504/2/a123-systems-a-matter-of-demand.html
madtony
15 years ago
Why A123Systems Lost the Volt Battery Deal
January 12th, 2009
Battery startup A123Systems was on a roll in 2008: It went into the year with a fresh round of capital (funds totaled $132 million in October 2007) and by May seemed to be headed for an IPO. But less than two weeks into 2009, the Massachusetts-based company has been defeated in a battle for what could be (if the automaker stays afloat) one of the biggest electric-vehicle battery supply deals in the country: GM’s Chevy Volt.
Granted, GM has said it will continue working with A123 (and other battery makers) “to support several [battery] companies and technologies.” But why did A123 lose out to LG Chem’s Compact Power for the major deal? According to GM vice chairman Bob Lutz, the automaker wanted flat, lithium-ion. The risks involved with working with a startup also played a factor.
The Michigan Business Review reports this explanation from Lutz:
"A123 is still sort of a startup, they’re still ramping up, and A123 has been specializing mostly in…cylindrical cells, which are good with power tools and stuff. What we need here is prismatic, which is flat cells. And LG Chem is just farther along."
The question of flat vs. cylindrical lithium cells came up last week when Apple unveiled its new 17-inch MacBook Pro at the annual Macworld Expo in San Francisco. Apple’s move to the flat side stems from the company’s design interests (the computer is less than an inch thick, so the lower the battery’s profile, the better). GM has similar reasons: Prismatic designs allow for higher density of cells in lower-volume battery packs (read: more trunk space).
As for the decision to go with the more established company, it represents a safe (and in this economy, smart) move for GM. The little Volt carried much of the weight of GM’s pitch to Congress for bailout funds, and it would be a risky bet to rely on a startup that itself needs government aid to build out manufacturing facilities.
Lutz added a jab at U.S. policymakers for failing to support energy storage technology R&D at the level of counterparts in South Korea (where LG Chem has it’s headquarters) and Japan (the world’s EV and laptop battery heavyweight). Again, as reported by the Michigan Business Review:
"This is one of the things why we say, if we’re serious about the electrification of the automobile, as part of the national energy policy we do need government support for advanced battery development, which of course Japan has. LG Chem has massive support from the Korean government in terms of a whole research campus was paid for by the Korean government because Korea recognizes that advanced battery technology is a key component of the country’s competitiveness.”
http://earth2tech.com/2009/01/12/why-a123systems-lost-the-volt-battery-deal/
madtony
15 years ago
Battery maker A123 Systems files to go public
August 8, 2008 7:45 AM PDT
Boston-area battery upstart A123 Systems on Friday said that it plans to go public and raise $175 million.
The company, which is not profitable, on Friday filed papers in which it said it intends to raise as much as $175 million, based on the registration filing fee. The money will be used to expand it manufacturing and research facilities as well as pay back about $2.5 million in debt.
A123 Systems was spun out of the Massachusetts Institute of Technology seven years ago to commercialize lithium-ion batteries for a range of applications.
The batteries, which the company says last longer and are more powerful than existing lithium-ion batteries, are already being used in power tools. In its S-1 filing, A123 Systems said it anticipates the portable power market to grow from $411 million to $1.1 billion in 2012.
The company sees more potential in the nascent markets of electric transportation and energy storage, according to the filing.
The company has developed batteries for plug-in hybrid cars and acquired Hymotion, which retrofits hybrids with bigger batteries. General Motors is testing A123 Systems batteries for use in its planned plug-in hybrid, the Chevy Volt.
A123 Systems' battery platform is being used for power tools, transportation, and power grid energy storage.
(Credit: Martin LaMonica/CNET News)
Batteries for transportation now represents a $700 million business and can grow to $5 billion by 2012, the company said.
Last month, a company executive indicated for the first time publicly that A123 Systems is also pursuing energy storage on the power grid with a dedicated group.
Energy storage, where devices are used to smooth out short-term fluctuations in the power grid and store wind or solar power, is anticipated to grow from $2.4 billion last year to $3.1 billion in 2015, according to A123 Systems. It also indicated that it is working with utility AES on grid-storage projects.
The company, which will be listed under the "AONE" ticker, made $35 million last year, but it's losses mounted to $31 million last year. In the first three months of this year, it lost almost $14 million.
Bankers for the planned initial public offering will be Morgan Stanley, Goldman Sachs, Merrill Lynch, Pierce, Fenner & Smith, as well as Broadpoint Capital and Lazard Capital Markets.
A123 Systems' IPO has been expected and rumored for months.
It will be closely watched by the the clean-tech industry which has seen a huge influx of venture capital into start-ups and a number of public offerings despite a generally poor environment for stock market entrances.
The company was originally funded by a number of corporations including General Electric and the Duracell division of Procter & Gamble, as well as venture capital firms Alliance Capital, Sequoia Capital, North Bridge Venture Partners, CMEA Ventures, and FA Technology Ventures.
http://news.cnet.com/8301-11128_3-10011255-54.html
madtony
15 years ago
GE betting on battery maker A123Systems
Posted on October 22, 2008 at 4:33 PM
Billions of dollars are headed into the hybrid/electric car business and into the devices that will run them. General Electric Co. invested $30 million in A123Systems Inc., bringing its total investment to $55 million, or 9%, in the Watertown, Mass., lithium ion batter maker. A123 claims that unlike standard Li-ion batteries, its product isn't prone to overheating and has greater power density, lower weight and lower cost.
Reuters reported that A123, working with Germany's Continental AG, is in the running to supply Li-ion batteries to General Motors Corp. for its Chevy Volt (pictured), a plug-in car the No. 1 U.S. automaker aims to begin selling in 2010. The report said Compact Power, a unit of South Korea's LG Chem Ltd., is the other contestant in that race.
In August, A123 filed for an IPO, but as strained credit markets practically made IPOs go the way of the dinosaur, the company hasn't set a date to price.
One could speculate, if OPEC doesn't cut production -- or a cut is ineffective -- at its Oct. 24 meeting, deflated oil prices could strain the influx of cash in to the alternative energy industry. But A123 has its game plan in order. Congress is tightening fuel standards for automakers. A123 said the fuel economy standard increased 40% to 35 miles per gallon by 2020 -- it is estimated that to meet these new vehicle efficiency standards, half of all cars must be hybrid by 2020.
http://www.thedeal.com/corporatedealmaker/2008/10/ge_betting_on_battery_maker_a1.php
madtony
15 years ago
August 8, 2008 7:45 AM PDT
Battery maker A123 Systems files to go public
Boston-area battery upstart A123 Systems on Friday said that it plans to go public and raise $175 million.
The company, which is not profitable, on Friday filed papers in which it said it intends to raise as much as $175 million, based on the registration filing fee. The money will be used to expand it manufacturing and research facilities as well as pay back about $2.5 million in debt.
A123 Systems was spun out of the Massachusetts Institute of Technology seven years ago to commercialize lithium-ion batteries for a range of applications.
The batteries, which the company says last longer and are more powerful than existing lithium-ion batteries, are already being used in power tools. In its S-1 filing, A123 Systems said it anticipates the portable power market to grow from $411 million to $1.1 billion in 2012.
The company sees more potential in the nascent markets of electric transportation and energy storage, according to the filing.
The company has developed batteries for plug-in hybrid cars and acquired Hymotion, which retrofits hybrids with bigger batteries. General Motors is testing A123 Systems batteries for use in its planned plug-in hybrid, the Chevy Volt.
Batteries for transportation now represents a $700 million business and can grow to $5 billion by 2012, the company said.
Last month, a company executive indicated for the first time publicly that A123 Systems is also pursuing energy storage on the power grid with a dedicated group.
Energy storage, where devices are used to smooth out short-term fluctuations in the power grid and store wind or solar power, is anticipated to grow from $2.4 billion last year to $3.1 billion in 2015, according to A123 Systems. It also indicated that it is working with utility AES on grid-storage projects.
The company, which will be listed under the "AONE" ticker, made $35 million last year, but it's losses mounted to $31 million last year. In the first three months of this year, it lost almost $14 million.
Bankers for the planned initial public offering will be Morgan Stanley, Goldman Sachs, Merrill Lynch, Pierce, Fenner & Smith, as well as Broadpoint Capital and Lazard Capital Markets.
A123 Systems' IPO has been expected and rumored for months.
It will be closely watched by the the clean-tech industry which has seen a huge influx of venture capital into start-ups and a number of public offerings despite a generally poor environment for stock market entrances.
The company was originally funded by a number of corporations including General Electric and the Duracell division of Procter & Gamble, as well as venture capital firms Alliance Capital, Sequoia Capital, North Bridge Venture Partners, CMEA Ventures, and FA Technology Ventures.
http://news.cnet.com/8301-11128_3-10011255-54.html
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