| China BAK Moves Toward HP Supply Deal
China BAK Battery Inc., which makes laptop and electronic device batteries, said Monday it signed a nonbinding letter of intent with Hewlett-Packard Co. that may lead to a supply agreement. Under the terms of the letter, the companies agreed to work toward a definitive agreement in which China BAK would supply lithium ion battery cells to HP China BAK said it agreed, subject to completion of negotiation, to allocate at least half of its monthly cylindrical lithium ion battery cell manufacturing capacity to HP or HP's designated battery pack manufacturers. Shares of China BAK rose $1.23, or 29.2 percent, to $5.44 Monday in after hours trading, following an earlier close at $4.21. The shares have ranged from $2.85 to $8.31 over the past year. Shares of HP rose $1.22, or 2.6 percent, to $48.43.
Hot Shots: Tech That Keeps You on the Move
Even in the dog days of summer there's always some new tech tool to help a small business run more efficiently. Here's a quick look at a few of the latest products that can help keep you rolling along. Fresh Batteries for Old Laptops
Unleash your laptop you know, the older model that hasn't been further than three feet from a wall socket since its battery went to lithium ion heaven back in 2003. Even a thorough search on eBay failed to find a replacement for it. FreshBattery.com wants to get you mobile again, and so it recently launched its Legacy Power line of batteries designed for more than 1,500 models of aging laptops including those from HP, Compaq, IBM/Lenovo, Apple, Toshiba, Sony and Dell. Most batteries start to lose their full charge capability at about two years.
China BAK shares jump on HP announcement
Shares of China BAK Battery Inc. jumped sharply in afternoon trading Tuesday after the maker of laptop and electronic device batteries said it is working on a deal with tech giant Hewlett-Packard Co. China BAK said late Monday it signed a nonbinding letter of intent with HP that may lead to a supply agreement. The companies agreed to work toward a deal in which China BAK would supply HP with lithium ion battery cells for its notebook computers. "We are encouraged by this announcement and believe it removes substantial uncertainty regarding the company's growth outlook," wrote Roth Capital Partners analyst Mark Tobin in a note to investors. He kept a "Hold" rating on China BAK and raised his target price to $5 from $3.50. The analyst expects the contract will be finalized in the first quarter of 2008.
Laptops that make the grade for students
Good news for students facing the inevitable computer upgrade: There's never been a better time to buy a new PC. Not only are computers becoming incredibly powerful and packed with convenient features - such as wireless connectivity and memory card readers - but prices are at an all-time low. What's more, PCs are also replacing other home technologies these days, including stereo systems (thanks to MP3s and Internet radio stations), telephones (thanks to webcams) and televisions (thanks to broadband video). Despite being slightly more expensive than their stationary desktop counterparts, laptop computers (also referred to as "notebooks"), are more ideal for a student's lifestyle since they can bring the computer with them wherever they go - be it a university lecture hall, study session in the library or in or around the home (or dorm room).
Notebook computer industry faces parts shortages
Hot demand and a massive battery recall are causing shortages of key components for the notebook computer industry, analysts and companies say. The worst case scenario for users is the likelihood of fewer deals for new notebook computers over the next five months because PC manufacturers are paying a premium for components and have to pass those higher costs down the PC supply chain. Users are also likely to see fewer discounts and other promotions, such as extra DRAM or a bigger hard disk drive (HDD). .
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