NEW YORK ( TheStreet) -- Of lithium battery stocks that exhibited weak stock price performance in 2010, readers of TheStreet believe that Advanced Battery Technologies ( ABAT) will most likely to stage a turnaround in 2011.
When given a choice between Ener1 ( HEV), A123 ( AONE) and Advanced Battery Technologies, 52% of the votes went in favor of ABAT; 29% favored A123 and 19% were most hopeful about Ener1. Although voter sentiment was lowest for Ener1, shares of the company experienced a major spike this week. On Tuesday, Ener1 hit a 52-week high of $5.90, as it highlighted that it had signed a joint-venture agreement with China-based Wanxiang Electric Vehicle to produce lithium-ion cells and battery packs for the rapidly growing Chinese market. "Ener1 has previously stated that they were on the verge of establishing a major partnership in China and we commend management for once again delivering on its promises," Thomas Weisel Partners analyst Dilip Warrier said in a note. Warrier noted that with $8 billion in annual revenue in 2009 and big customers such as GM ( GM), Ford ( F), and FAW- Volkswagen, Wanxiang is China's largest auto parts supplier. Furthermore, the company is the second largest stakeholder in automotive manufacturer Guangzhou Automobile, and has global operations and partnerships with major original equipment manufacturers including Honda ( HMC), Toyota ( TM) and Fiat, he said. Goldman Sachs has a neutral rating on Ener1 stock. Wunderlich Securities has a hold rating on Ener1 as does Stifel Nicolaus. When TheStreet interviewed Olympia analyst Paul Resnik in early December, ABAT had recently gone for a $30 million capital injection via the issuance of millions of additional shares. This diluting move was a disappointment for many investors -- announced just as the stock was strengthening on strong third-quarter results. A sharp selloff of the stock ensued. "The market is anxious to see what this surprise was about," Resnik had said.
Shares of Ener1 (Nasdaq:HEV) were gapping down Wednesday morning with an open price 19.2% lower than Tuesday's closing price. The stock closed at 26 cents yesterday and opened today's trading at 21 cents.