Even if newly public battery maker A123 Systems ( AONE) soars in the aftermarket, don't feel too bad about being left out of the IPO party, because there are much smarter ways to play the lithium-ion battery market.

A123 Systems priced its $378 million IPO Wednesday night, selling 28.1 million shares at $13.50 each, and the stock began trading Thursday. It closed at $20.29, up $6.79 for a 50.3% gain. Shares were down 10 cents after hours.

The company increased the deal size by almost 10% even after raising the offering price by 50% from the initially indicated range. Like China Bak Battery ( CBAK), A123 is a money-losing company trading on an excessively high valuation.

Profitable alternatives such as Advanced Battery Technologies ( ABAT), China Sun Group ( CSGH), Hong Kong Highpower Technology ( HPJ) and China Digital Communication Group ( CMTP) all make for a better fundamental investment.

In evaluating this IPO, I am a very biased investor because I refuse to invest in money-losing companies. When a company is being well received by investors because its "losses are declining," I don't feel too bad about not being part of the IPO party.

A123 does have an impressive client list, including Chrysler and Black & Decker ( BDK). However, A123 has generated only $168 million in revenue since being founded in 2001. On revenue of $168 million, the company has lost $146 million since founding. I repeat, on revenue of $168 million since 2001, the company has lost $146 million.

Comparing A123 to its rivals shows that A123 got one spectacular deal from its IPO price. A123 will have an initial market cap of around $900 million. Compare this to money-losing CBAK, which now has a market cap of $230 million. CBAK has generated revenue of $225 million in the past 12 months. Over the past year, CBAK has lost about $10 million. Clearly, losing money is now the new trend in investing because CBAK soared 30% yesterday on news of the A123 IPO success.

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