Advanced Battery Technologies, Inc. (NASDAQ: ABAT) stock fell 3.6% during the July 3, 2008, trading session. The fall occurred after the company's announcement that they had attended the eighth China International Battery Fair. The rechargeable polymer lithium-ion battery cells made by ABAT received several positive feedbacks from fair attendees. The company's ability to easily customize the product to meet customer need received the most praise. Advanced Battery may be able to acquire a decent market share with their product, if the company will be successful at marketing.
Despite the fall in price over the last week, the company's stock still trades at a reasonable price, and the recession should only be temporary and not large scale. Advanced Battery has a strong income statement and balance sheet. With 187% increase in net income over the year as well as $11 million in cash, the company looks ready for fast growth. Add in the fast growing China market they're in and you get a potential winner.
Although Advanced Battery has a controversial trading history, the company appears to have finally built a strong base for the long term share price increase. If the next quarter results will not be disappointing it should trigger a rise in price. Meanwhile investors should be patient with this stock and not jump in to early when indicators, like MACD, are showing a possible further downfall.
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