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A123 SYSTEMS, AŞ Message Board

  • studioa33 studioa33 Feb 2, 2013 6:28 PM Flag


    Wanxiang should scrap asset sale, A123 spin off government business and sell to someone other than Wanxiang, liquify A123 with cash necessary to get out of bankruptcy intact, take 45% stake in A123 for preferred shares (see Sirius XM / Liberty deal), and then when A123 becomes profitable, utilize the NOLs against profit, which makes Wanxiang's shares that much more profitable. Profit higher when not taxed = more valuable shares. Then after NOLs exhausted, buy out A123 non-gov business. Otherwise, valuable NOLs totally shot, A123 shareholders sue, customers frustrated and leave, and company has bankruptcy label. Get this thing out of bankruptcy.

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    • studio
      your first sentence is constructed so badly I.m not sure what you are trying to say.
      It seems you are implying A123 has some say in what happens.
      This is no linger true.

      "A123 shareholders sue, customers frustrated and leave, and company has bankruptcy label. Get this thing out of bankruptcy."

      Um no. A123 is not in bankruptcy.
      It has been sold to Wanxiang America Corp.
      Shareholders have been wiped out and there is no company to sue.

    • quit posting this nonsense. Folks, before you get any false hope from this guy, click his name and read his ridiculous predictions going all the way back to last summer. He has only ever been wrong. Even took shots at me and I called this BK back in mar 2012.

      "Re: Told ya delisting was coming & R/S to follow!
      by studioa33 . Aug 22, 2012 9:25 PM . Permalink
      Wrong. The deal has not been approved by the regulators. Once approved, the stock will ramp. Anyone who can read, knows that a de-listing notice is sent if stock falls below a buck and stays below a buck for 6 months after the notice. Bro or woman, 6 months down the road, the deal will have regulator approval and the business will be flowing in. I'll revisit this with you in 6 months. I don't get spun up on day trading. See you in March 2013."

      business flowing in? how bout all assets flowing out and all shareholders wiped out (including you)

      A123 will NEVER be profitable. it's own enginners said so. $1500/kwh!!

      A123 is still losing more than its market cap every month. There is NO "out of bk intact"

      The military contracts you pumpers swore would save A123 were sold off for under 3 million. a joke.

      Did you really ride this stock all the way down from 1.50?! please stop you are embarrassing yourself.

      Studio33, you posted the same clueless idea back on Jul 24 and many people explained why NOLs were worthless. Read it again:
      § 382
      Change of Ownership

      In a change of ownership, net operating losses can be used at a rate equal to the lessor of a) the company’s equity value x the long term tax exempt bond rate or b) the aggregate total of net operating losses x the long term tax exempt bond rate.

      So let’s use an example. A company has a market value of $20 million and net operating losses of $40 million. (or 44M and 800M in losses lol)

      Naturally, the market value is smaller than the total NOLs, so we have to use this figure. Now we grab the long term tax exempt bond rate from the IRS and find it is 3.26%. For each year going forward, because we triggered the § 382 limitation, we can use only $20 million x 3.26%, or $652,000 in net operating losses.

      Hmm, suddenly the $40 million in NOLs don’t seem all that valuable if we can only use $652,000 in each future calendar year.

      Keep in mind that before the change in ownership, we could use any amount of NOLs that we wanted to in any given year. So if we earned $5 million the next year, we could use $5 million in net operating losses to offset our tax burden. However, after the change in ownership, only $652,000 in net operating losses are available each year. This obviously creates a problem if the business improves substantially in the years following acquisition.