my mid year review of AMSC | AMSC Message Board Posts

American Superconductor Corporation

  AMSC website

AMSC   /  Message Board  /  Read Message



Rec'd By
Authored By
Minimum Recs
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board
Msg  127 of 188  at  6/30/2011 4:36:18 PM  by


my mid year review of AMSC

 INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

American Superconductor
AMSC (market cap $0.46B)
American Superconductor is a high-tech company based on the development and sale of superconducting cables, which by extension means they also sell power regulators. The company also is invested in the project that will finally connect the three main US power grids. The cables have the potential to do for power what fiber optics did for information, though not to the same extent because the cables must be cryogenically cooled. The company is closely associated with the wind power industry because they acquired a turbine design company that became very successful, until a recent interruption in the orders from their main Chinese customer.

The company has considerable potential because almost all alternative energy strategies involve electricity and improved power regulation and distribution. The stock was traumatized by the news from their wind power customer, which created great uncertainty in the projected financial estimates. As with any high-tech company, inventions, innovations and competition can undermine their advantages.

I think the market over-reacted because they mistook the company for solely a wind power company and because the market does not like uncertainty. I am not concerned with what might only be a sales delay. I am more concerned with the lack of cable, regulator, and interconnect news. Small improvements in revenues, certainty, and news could cause large increases in the stock price.

DISCLOSURE LTBH since 2003 but the first shares were sold a while back. I bought more after the main drop, and have been surprised that the knife continued to fall. I might buy more if discretionary funds were available.
(I've also collected links to the other discussion boards and my other stocks over on my blog

     e-mail to a friend      printer-friendly     add to library      
Recs: 2  
   Views: 353 []
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board

Financial Market Data provided by