Just after the closing bell Wednesday, A123 Systems, Inc. (NASDAQ:AONE) received their delisting warning from The NASDAQ Stock Market LLC. The penny stock is at YTD and 52-week low after closing at $0.3793, down -5.67%, for their 9th consecutive losing session. Having had a 71% run from August 6 to 10 and multiple double-digit runs since June 1, AONE stock is st the top of the list for all swing traders and day trading flippers for Thursday.
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AONE Stock Chart
Wednesday Stats
Trades: 9,575
Average Trade Size: 1,114
10 Day Stats
Percent Change: -24.14%
Moving Average: 0.4829
Average Volume: 13,305,720
50 Day Stats
Percent Change: -75.99%
Moving Average: 0.8654
Average Volume: 7,134,743
200 Day Stats
Percent Change: -88.03%
Moving Average: 1.4848
Average Volume: 4,077,582
The cause for the rally earlier this month was due to Wanxiang Group Corporation, one of China’s largest automotive component suppliers, who stepped in offering up to $450 million in a non-binding MoU. A123′s liquidity is the main issue hindering the electric vehicle battery makerand why it’s trading at nearly 25% of book value; $1.27 a share. Without the deal, chances are A123 Systems could have seen a “Q” added to its ticker in the near future and become better known as A!@# Systems.
With widening net losses ($82.9 million in Q2 versus $55.4 million a year ago), Q2 revenue is also an indication why the shares in the Company have frightened away investors booking only $17 million, 53% less than the same period last year. The leprosy-affect of sales and liquidity is opening the door for a slew of day traders to start flipping AONE stock like two all beef patties, special sauce, lettuce cheese, pickles, onions, on a sesame-seed bun.
About AONE Stock
A123 Systems, Inc., together with its subsidiaries, designs, develops, manufactures, and sells rechargeable lithium-ion batteries and energy storage systems worldwide. On August 21, 2012, The Company received a letter from The NASDAQ Stock Market LLC notifying them that for the last 30 consecutive business days, the bid price of their common stock has closed below the minimum $1.00 per share requirement for continued inclusion on NASDAQ based on Listing Rule 5450(a)(1), and describing a timetable for bringing A123 Systems into compliance with that rule.
A123 Systems’ common stock remains listed on NASDAQ under the symbol AONE and have been provided 180 calendar days, or until February 19, 2013, to regain compliance, in accordance with Listing Rule 5810(c)(3)(A). If at any time before then, A123 Systems’ common stock has a closing bid price of $1.00 or more for a minimum of 10 consecutive business days, NASDAQ staff will notify the Company that it has regained compliance.
Bottom Line: Regulatory approval for the deal on the penny stock of A123 Sysytems needs to be met, Wanxaing indicated its intent to purchase AONE stock at $0.55. If that is the floor for AONE, 45% gains could be had pending any indication that the deal is approved which would give A123 new-found life through financial stability to capitalize on existing opportunities and take on new projects in China.
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