indieresearch Playing Components in the Electric Car Market
* the tickerspy.com Staff * On 12:35 pm EDT, Monday October 19, 2009
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* Companies: o Apple Inc. o A123 Systems, Inc. o BYD CO LTD H SHS * Topics: o Consumer Goods Sector o Industrial Goods Sector o Technology Sector
The ultimate winners in the electric car race might not be the first out of the gate, but some investors are already winning big on components. Related Quotes
Symbol Price Change § AAPL 188.92 +0.87§ Chart for Apple Inc.
AONE 24.26 +0.74§ Chart for A123 Systems, Inc.
BYDDF.PK 11.10 +0.90§ Chart for BYD CO LTD H SHS
CBAK 4.55 +0.17§ Chart for China BAK Battery, Inc.
CRTP 6.36 +0.31§ Chart for China Ritar Power Corp. {"s" : "aapl,aone,byddf.pk,cbak,crtp,f,hpq,intc,tm,ttm","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Today's report by BusinessWeek likens the technological relationship between batteries and electric cars to that of microchips and personal computers. The report noted that optimistic estimates suggest electric cars could account for a fifth of the auto market in the next decade - suggesting that the current front-runners might not be the ultimate winners. Just as Hewlett Packard (NYSE: HPQ - News) was not the first to build a PC, and Apple (NASDAQ: AAPL - News) wasn't the first to make an MP3 player, future giants in the electric car market might not be the first horses out of the gate. However, that hasn't stopped investors from placing their bets on the future Intel (NASDAQ: INTC - News) of electric car components.
A handful of battery stocks are flying today, continuing a trend that has sent select players up by double-digits over the last month, while others head south by similar margins. As the hype surrounding mainstream electric transportation grows, a potentially bright future for battery companies may become increasingly apparent.
As a whole, the Energy Storage and Battery Technology Stocks Index is ahead by 2.5% today. It is now outperforming the S&P 500 by 9% over the last month.
Leading today's rally is Chinese electric car and battery company BYD (OTC: BYDDF - News). The stock has gotten a lot of attention since news of Warren Buffett's investment in the firm was made public, and shares have doubled in just the last three months. The company's nine-month car sales shot up by 50% compared to last year's figure, according to Friday's report in the China Securities Journal, which was covered by Reuters on Thursday evening in the U.S.
Meanwhile, other Chinese battery stocks are following BYD higher today. China Ritar Power (NASDAQ: CRTP - News) and China BAK Battery (NASDAQ: CBAK - News) are both up by 4%.
The sector's newest component, A123 Systems (NASDAQ: AONE - News) is adding 3% to its 75% rally since going public less than a month ago. It is already one of the top performing 2009 IPOs.
As stated in BusinessWeek, "the great battery race will make sure that there will be several large companies that specialize in the design and manufacture of batteries for cars." So as Toyota (NYSE: TM - News), Tata Motors (NYSE: TTM - News), Ford (NYSE: F - News) and the like battle for their share of the electric car market, investors should keep a close eye on moves within the Energy Storage and Battery Technology Stocks Index.
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