A123 Systems Looks Headed Back to IPO Price

Nov.22.09 | About: A123 Systems, (AONEQ)

by Michael Kanellos

Nearly two months after its successful initial public offering, A123 Systems (AONE) seems headed back to its roots.

The company's stock traded at around $15 Friday and dipped into the high $14 range. (I noticed this after getting a stock quote for a report that Tesla may file for an IPO.) A123 went out at $13.50.

Stocks are currently being whacked, so it's natural that the battery maker would take a hit. Still, it's been a wild two months. The company's stock climbed to nearly $20 on the first day of trading, a 45 percent increase. A little while later, it climbed past $28 and stayed in the $20 plus range through most of October.

But November has brought a spate of bad news and a gradual slide downward. First, Fiat (FIATY.PK) announced it had revamped and trimmed back Chrysler's electric car plans. Chrysler had picked A123 to make its batteries. A week later, A123, in its most recent quarterly report, posted a $22.9 million loss but an increase in revenue. On the plus side, the company completed a utility energy storage project in Chile.