This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Quarter Could Aid Battery Makers

Makers of lithium ion batteries could get a lift from Apple's (AAPL - Get Report) fourth-quarter earnings and revenue that topped analysts' estimates.

The performance bodes very well for makers of lithium ion batteries such as China Bak Battery (CBAK - Get Report), Advanced Battery Technologies (ABAT), Hong Kong Highpower Technology (HPJ - Get Report) and China Digital Communication (CMTP.OB), none of which have yet released quarterly results.

All of these stocks are public and liquid, but they trade on very different multiples, so investors should select carefully. China Bak is one to avoid for now, while China Digital could be the next home run. Advanced Battery and Hong Kong Highpower look fairly valued, but could benefit further if there are any positive earnings surprises.

Inside every iPod, iPhone and Apple laptop is a lithium ion battery. The lithium ion battery has become smaller, more energy efficient and longer lasting, effectively replacing the previous generation of nickel metal hydride batteries. The four companies are all competitors in this market and are currently enjoying high margins as demand for products such as those made by Apple continues to soar. Apple's strong results provide a great barometer for what to expect from upcoming earnings reports by these battery makers, all of which should enjoy a strong pick-up in revenue.

Following the initial public offering of A123 Systems (AONE), China Bak's stock price is up more than 50% as enthusiasm has grown for next-generation battery makers. But like A123, CBAK is a money-losing company. I would expect to see significant revenue growth from CBAK this quarter, but unless it can effectively double sales from the previous quarter, it is unlikely to break even in the coming quarter.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ABAT $0.04 -6.82%
AAPL $94.30 -0.92%
CBAK $2.51 0.40%
HPJ $1.92 3.80%
FB $118.08 0.55%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs