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Valence Technology (VLNC) files for Chapter 11 bankruptcy. The company, a developer of...

Valence Technology (VLNC) files for Chapter 11 bankruptcy. The company, a developer of lithium-ion batteries for vehicles and other high-power equipment, had already disclosed board resignations and a delisting notice yesterday afternoon. Rival A123 Systems (AONE +1.7%), which has its own cash flow problems, isn't showing any ill effects.
Comments (8)
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    I like that honest reporting, "which has its own cash flow problems, isn't showing any ill effects." How illogical can a reporter get?
    12 Jul 2012, 10:46 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1069) | Send Message
     
    A bankruptcy filing often leads to shares of struggling rivals falling on fears the same will happen to them. Notice what happened to some coal stocks earlier this week on news of Patriot Coal's filing. Hope that's logical enough for you.
    12 Jul 2012, 11:00 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    Its not, because it's misleading and it's why no one believes the media anymore. So you should have said something like, "oddly enough AONE, which has it own problems with cash flow, is being bid up."

     

    Just because one's share price is being bid up does not mean the company is without problems, which is what you implied.
    12 Jul 2012, 04:58 PM Reply Like
  • mike mulligan
    , contributor
    Comments (8) | Send Message
     
    What a shame this fiasco is and still I can't believe it
    12 Jul 2012, 05:21 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1069) | Send Message
     
    I didn't suggest anything of the sort. I merely pointed out A123's shares are rising in spite of Valence's filing. Not sure how anyone could get the impression I was writing that the company didn't have any problems.
    12 Jul 2012, 05:26 PM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    Of course you don't see it.
    12 Jul 2012, 07:31 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Things like this are typical in a recovering economy...

     

    :)))
    12 Jul 2012, 10:46 AM Reply Like
  • Michael Stavy
    , contributor
    Comments (9) | Send Message
     
    Carl Berg, the 44% equity owner and 100% owner of the long term debt has decided, for some reason, not to continue funding the company any more. He has funded VLNC with LTD and equity purchases for many years. The LTD is 83% of the total debt. The question is why Carl stopped funding the working capital needs of the firm just now when it appears that VLNC is about to breakeven (3 more years) and when the EV market is starting to mature. The current assets are 27.2 million while the current liabilities are 14.4 million so that the unsecured creditors will be paid off. The LTD will replace the current equity and then the questions are where the next 3-5 years of working capital will come from and will the current “56% minority” equity owners get anything. This assumes that the firm’s technology and patents hold up and it will have significant positive cash flows in 3-5 years.
    13 Jul 2012, 12:39 PM Reply Like
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