Robert D.

Hidden Clues Yield Opportunities in Amcon and Hong Kong Highpower Technology

I agree w/ jerrydd, there are much better plays in the battery market industry. The one problem with this industry is that it's still evolving, and a company can be wiped out by competition very quickly by new technology. I would focus on a company's backlog if I am looking into batteries. This will give the investor some sense of security over the next 6-12 month period. I myself, prefer ABAT, which produces li-ion batteries (far superior to NiMH).

As far as DIT, I've also traded this one for a while, and I see this going much higher in 2010 ($125-$150). They are a big "turnaround" story. They are currently listed as a small cap, but this will change, and big money will flow pushing this even higher.

Better Lithium-Ion Battery Plays than A123 Systems

I personally agree with the author that there are better investments in this industry than A123. Although there has been significant hype over this IPO that the run today is not a surprise. I definitely urge investors to practice caution when investing in this industry, as well as foreign companies. Feel free to check out my research on ABAT as well:

www.everyl.com/index.p...

Alternative Energy Storage and Blood in the Streets

Would the increased push to reduce lead levels in the United States affect lead-acid sales (at least in the US)?

What are the environmental pros and cons from a legislative point of view in the use of lead-acid vs. Li-ion? (How much safer (environmentally) would the widespread use of Li-ion vs lead batteries be?)

Alternative Energy Storage and Blood in the Streets

John thanks for sharing your knowledge in this sector.

I am taking a deeper look into A123's S-1, and noticed the following:

"We have had negative cash flow before financing activities of $17.0 million for 2005, $29.1 million for 2006, $56.1 million for 2007 and $13.5 million for the three months ended March 31, 2008. We anticipate that we will continue to have negative cash flow for the foreseeable future as we continue to make significant future capital expenditures to expand our manufacturing capacity and incur increased research and development, sales and marketing, and general and administrative expenses."

Assuming expenses remain constant (even though they plan on spending heavily on R&D, and rightly so), my main concern is that sales will not catch up to the increase in R&D, most likely pushing them to a secondary offering, diluting shares.

Unfortunately I am not too familiar with their products, demand, competition, costs, etc... But my main question is, do you foresee sales to make up for the increase in R&D, and most importantly based on what quantifiable data?

Nonetheless, it looks like the market hype will push the stock price higher at least in the short-term. But I'd be concerned as a long-term investor.