Friday, May 11, 2012

I need Lithium

I have opined so many times that A 123 was a thermodynamic goner.  Now it is really on its last legs and has gone into the financial death spiral of borrowing money from vultures.    The interest rate is not that of a raptor but the company has to pay back 1/28th of the principal every two weeks and the amount borrowed is $50 million.  I hope that Chu Chu has asked the Treasury Secretary of the US Mr. Tiny Tim to make sure our taxpayer loans to the company have preferential position when it comes to the cash and assets of the soon to be dead battery company.  No word from Chu Chu or Tiny Tim yet on the disaster but Al Gore is still hoping that his Fisker will save him by a whisker from this short circuit.  Actually I do hear that the State of Delaware (the intended home of the Fisker Assembly Plant) will shorten their famous half mile international speedway to only 100 yards so the Fisker Dogma can perform its final lap in short circuit and disappear like the billions of tax payer money that were wasted on A 123 and its partner Fisker.  Today the stock of A 123 closed at $1.03 so I suggest a renaming of the company to A One Zero Three.  Fisker does not have a stock that trades but it should be renamed “Not So Oldsmobile” as it will die long before its fifth birthday.

This has been a terrible week for Al and his Kleiner Perkins team.  Their bio fool wonder child Amyris is trading at $2.04 a share.  Down from a high of $30.78 a share when all Gringos except the Green Machine believed that their sugar water to diesel trick using e-coli was for real.  I knew it was a slight of hand and that there was a bug in the system so to speak.    Yeah Amyris is part of the Kleiner green portfolio that Kleiner partner Al Gore put together and then sold the department of entropy the bill of goods.  Even the President was still talking “advanced biofuels” in the 2012 state of the union address.  Bet you that word will not be mentioned in the 2013 state of the union speech.  In 2011 the President referred to plain old biofuels as our “Sputnik Moment”.    I say the whole biofuels story of the past 12 years has been our Apollo 1 moment.

Tesla still manages to defy gravity and is still playing musical chairs even though there is only one electric chair in the room.  They will launch the model S a month early and will start repaying the department of entropy our loans in December.  It will be rather funny if Chu Chu is still the secretary of entropy and actually does get a few loan dollars back and then has to ask his boss what to do with the money.  The whole thing reminds me of the joke of how to make a million dollars?  You start with ten million dollars!  I no longer wear a hat but I have ordered a ten gallon Stetson to eat when we get back the $465 million Chu Chu handed Tesla to build a few tens of thousands of very expensive cars for the rich and famous.   Of course the liquid in the 10 gallon hat will be 80-proof vodka as that is what the fermentation of carbohydrates should really yield.   Time to say cheers to the ethanol and of course cheers to state of union addresses that think we are un-advanced bio fools.