What if I told you I've found a relatively small company shaping up to be one of the future leaders in the lithium/hybrid car battery industry?

You'd be somewhat interested, right?

Well, what if I also to you this is not your average battery company. Its battery technology was developed at MIT. It was originally financed by Sequoia Capital - the same early investors behind YouTube, Cisco, eBay, Yahoo, etc. It has a close relationship with General Electric (GE). The U.S. government has already cut a $249 million check to help it ramp up production. And finally that Morgan Stanley and Goldman Sachs were going to be big supporters.

You'd certainly be a little more than interested, right?

Well it's a real company. I'd say it's the best "story stock" to hit the market in a long time. More importantly, it proves how you can align your interests with Wall Street's to ensure the big money players have a personally vested interest in making you money.

As Easy as A-1-2-3

The company is A123 Systems (NASDAQ:AONE). Its first day of trading was yesterday. The IPO was for 28.1 million shares priced at $13.50 a piece. The first shares traded hands at $17 - good for an instant 26%. Then it climbed to more than $20 per share through the rest of the day.

A few months ago I told readers of Prudent Investing it was going to be a hot one. And with a 50% gain on day one, A123 did better than even the most optimistic of us who have been covering this story for a while would expect.

There are two very important points to take-away from the strength of this IPO.

First, this IPO just shows how truly strong the demand is and will be for shares in the hybrid car battery markets. After the IPO there were more than 98 million shares outstanding. As of today, the company with no proven product, no major sales contract (GM actually passed on A123's batteries for the Chevy Volt), very little production capacity, and no near-term prospects for profitability, sports a market cap of more than $1.9 billion.

Second, Wall Street desperately wants – maybe even needs – a scorching hot IPO.

The Best Paydays for Wall Street

Wall Street makes quick, relatively easy money from IPOs. The usual fee is anywhere from 5% to 7% of the total value of the IPO. In fact, the largest Wall Street firms collected more than $8.9 billion in underwriting fees for bond issues, IPOs, and secondary share offerings in the past three months.

Also, their top clients like mutual funds and hedge funds make sizeable gains from IPOs too. A trader at a mutual fund can place trades anywhere.