A123 Battery
futureofcapitalism.com

Bronte Capital's John Hempton has a post about what a crummy investment the battery company A123 has been for him:

we lost money because the company just can't get manufacturing costs low enough fast enough to produce the rosy future we saw. We assumed away execution risk and paid the price.

A123 might get there in the end – and the stock is almost certainly a better buy now than when we purchased it – in that they are further developed and the stock is half the price. But we are hardly in a position to judge whether they will execute in the end. And we are already seeing competitive products in development.

Read More...

A123 Battery
futureofcapitalism.com

Bronte Capital's John Hempton has a post about what a crummy investment the battery company A123 has been for him:

we lost money because the company just can't get manufacturing costs low enough fast enough to produce the rosy future we saw. We assumed away execution risk and paid the price.

A123 might get there in the end – and the stock is almost certainly a better buy now than when we purchased it – in that they are further developed and the stock is half the price. But we are hardly in a position to judge whether they will execute in the end. And we are already seeing competitive products in development.

Read More...