Small Cap Machine
Long/short equity

Arotech: A Dead Battery In Disguise - Why The Stock Is Worth No More Than $2 Per Share

At $4.43-share, Arotech (NASDAQ:ARTX) shares are massively overvalued and have tremendous risk - we think the stock is worth no more than $2.00-share (55%+ downside). TSLA's recently announced Gigafactory plans has led to mass buying hysteria for any company with lithium-ion battery related technology, including ARTX. The stock was further propelled by two overly-bullish articles that lacked any data to substantiate their claims, one from Zacks Equity Research and the other on Seeking Alpha. As a result, the shares have enjoyed dramatic gains in 2014, rising from $2 to $6 per share, as investors have rushed to join the supercharged party. Unfortunately, investors have chosen to buy first and ask questions later, failing to understand a...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details