Thursday, September 24, 2009

Economic Destruction for Fun and Profit

"Promoting alternative energy will destroy the economy."

Don't try telling that to investors on Wall Street, who have sharply bid up the price of a lithium-ion battery company's initial offering today. Shares of A123 Systems (symbol AONE) are up over 50% from this morning's offering price of $13.50, which had been raised from earlier estimates of around $8. After a delayed opening, the shares began trading at $17 and reached a high of $21.14 before retreating slightly to $20.29 at 4 pm. Volume was over 41 million shares.

The company, "one of the world's leading suppliers of high-power lithium ion batteries", has contracts to supply batteries for hybrid and electric cars to 7 auto manufacturers worldwide, including Chrysler, GM, and Nissan.

The A123 CEO Dave Vieau was interviewed this morning on CNBC:

From the press:
Image (click to enlarge): September 24 stock chart for A123, from MarketWatch, via Fidelity Investments

Disclaimer: CapitalClimate unfortunately does NOT own shares in A123.

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