Advanced Battery (NASDAQ:ABAT) Seems Positioned for Acquisition

Based on the probability Advanced Battery Technologies (NASDAQ:ABAT) will make an accretive acquisition sometime soon, Olympia Capital Markets says they're maintaining their "Buy" rating on the company.

Olympia said, "This morning (Monday), ABAT shares have (as of this writing) pulled back about 13% and now sell at approximately a 6% discount to the placement price. This capital raise strengthens our conviction that the Company will seek to make a significant and, in our opinion most likely, accretive acquisition in the near term. Accordingly, while we are reducing our 2010 EPS for ABAT by one cent to $0.52, at this time we are maintaining our 2011 EPS estimate of $0.60."

Advanced Battery gained most of their losses back when closing on Monday, ended the trading session at $3.82, down slightly by $0.02, or 0.52 percent. Olympia has a price target of $7 on them.