A123 - Heads up

[DionysusToast]

All

A123 Systems initiated with a Outperform at RBC Capital Mkts; tgt $22 (17.00)

Note that on 23 March 2010, A123 (NASDAQ:AONE) will emerge from it's lockup period.

At this point, company insiders and others who got 'given' stock at the IPO will be able to sell shares. $13.50 is the IPO price and (I haven't checked yet) more than likely also the exercise price at which company insiders can execute their rights.

Expect much pumping in the meantime. Ride it in the interim at your peril.

DT

 

[GladiatorX]

Don't you think their products are going to become more and more in demand... Obama has hit there sector with a huge budget, the public is all for green energy; and this company would be all set to take advantage of an acceleration of 'green' application into everyday life...

The above obviously doesn't apply to the short-term.

I'm REALLY bullish on cleantech and solar energy stocks.

Just to clarify: Earnings IS NOT today; i don't know why i thought that, i just remember seeing it yesterday.

 

[DionysusToast]

I don't have any objection to that analysis of this type of company.

I'd just tread very carefully at this point in the life cycle of the company. As well as the company insiders, the following companies will be able to sell their holdings of AONE on 23rd March:

Morgan Stanley
Goldman Sachs
Merrill Lynch, Pierce, Fenner & Smith Inc
Lazard
Deutshe Bank
Pacific Crest

All upstanding companies who want nothing but the best for shareholders. I am sure they won't be persuading analysts to put out glowing reports before dumping of shares on the market, thereby increasing the float.

 

[GladiatorX]

Whats your specific course of action going to be to this particular opportunity you can see Dionysus ?

(Out of educational interest)

 

[Benton D Struckcheon]

Hmm. I made craploads many many years ago off of Lattice Semiconductor (LSCC; they're a penny stock now) when they came off their one year period and fell like a rock. Never tried that trick again though.
Maybe I should, seems like a decent enough idea: wait for the one year to end, pick it up if it drops, unload into the bounce.

 

[DionysusToast]

My plan ?

Well - if I did have a plan, it may include looking at the SEC filings and figuring out how much these guys put in the float and how much they kept to themselves and figuring out if they kept a large enough percentage to dramatically alter the supply situation.

I'd probably also figure out at what price their share options are set - whether it's the IPO price or the price at the end of lock-up or set some other way. Obviously - the greater the difference between the exercise price and the price at the time they sell, the better it is for the insiders.

If I decided that told me that the interests of insiders was large, that it could have an impact on the float and that a rise in price was to the insiders benefit - I may just hold it for a short while and reverse into the sell off. Note that other people play this and expect increased supply and you'll see people getting out earlier. Note also that if the insiders think the price will still keep rising, it's in their interest to hold onto those shares until they think it's done.

Now - I'm off to EDGAR