Following up on this morning's quick hit, "A123 Systems (AONE) Shares Getting Whacked as Wunderlich Cuts to Sell" (AONE).
From TheStreet:
A123 Systems(AONE_) is experiencing heavy selling volume on Tuesday after Wunderlich Securities analyst Theodore O'Neill downgraded the lithium ion battery maker to a sell.
For some time already the Wunderlich analyst has been skeptical about the expected pace of electrical vehicle adoption and the ramp in the lithium ion battery makers' operations.
Inherent in the A123 Systems downgrade on Monday is Wunderlich's modeling of a slower ramp in the electrical vehicle business in both the U.S. and Europe. As a result, the Wunderlich analyst sees no choice for A123 Systems but to head back to the capital market to raise more money by early 2012 at the latest. The analyst is forecasting a cash balance for A123 Systems of less than $10 million by the end of 2012....MORE
