My end of year review of AMSC | AMSC Message Board Posts

American Superconductor Corporation

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Msg  176 of 183  at  12/31/2018 4:36:27 PM  by


My end of 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.


AMSC (market cap is $0.239B was $0.147B)

AMSC, formerly and more appropriately called American Superconductor, provides goods and services to the electric utility industry. Their superconduction technologies are used in more efficient motors, power cables, and power regulators. An auspicious acquisition several years ago created a wind turbine design division. They also were part of a high-profile attempt to interconnect the US’ three main power grids.

It looks like a major customer turned competitor by stealing intellectual property from AMSC. The cancellation of those orders was a major impact to the revenues, naturally; but the case was difficult to prosecute because the customer/competitor was in China. The stock dramatically fell. Many investors waited for years for a reasonable settlement, but the one reached this year was less than a tenth of what I hoped for.

The rest of the business should be doing well considering the need and demand for more efficient power generation, transmission, and management. Unfortunately, the early promises of “doing for electricity what fiber optics did for information” have not manifested. In the meantime, competitive pressures may be building thanks to decentralization and the development of other technologies (e.g. higher temperature superconductors, graphene-based products, etc.)

While this could sound disappointing and dire, the stock has more than tripled this year. That may be more of a reflection of how far it was undervalued rather than an indication of a premium.

I’ll continue to hold because market psychology suggests someone likes AMSC for some reason. I missed an opportunity to sell a portion during the recent spike, one of the costs of a busy real estate broker’s business. I sold a little after the dip to balance with cheaper, more promising stocks in my portfolio.

DISCLOSURE LTBH since 2003 but the first shares were sold years ago, fortuitously in hindsight because I actually made a profit.

(I've also collected links to the other discussion boards and my other stocks over on my blog

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