Seeking Alpha

Benzinga: Nissan and LG supplier rumors take Polypore down

  • Polypore (PPO -4.5%) shares fell sharply after rumors surfaced that the company may have lost the battery component contract for the Nissan Leaf to Japan's Asahi Kasei, Benzinga reports.
  • Benzinga's coverage is based a source from Axiom Capital, which claims the Japanese competitor may have undercut Polypore's price for Li-Ion separator material (up from $1.60 to $2.60 per square meter after 2 layers of ceramic coating were added due to heat problems).
  • A second rumor said LG had qualified a Chinese supplier for its Li-Ion separator business. Axiom, which has a Sell rating on PPO, points out that the last time Polypore lost LG business, the stock tanked over 20% in a day.
Comments (1)
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Axiom is short and has had a $25 price target for a couple years now.

     

    Sounds like they are getting desperate
    18 Sep 2013, 01:25 PM Reply Like
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