|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 (was called American Superconductor)
AMSC (market cap $0.244B)
AMSC started as a company built around making and selling superconducting cables. The cables aid high-efficiency power transmission the way fiber optics aid telecommunications; i.e. high tech sends more stuff down a much smaller pipe. That has big implications for the energy efficiency of power transmission, power regulation, and motors. Along the way they bought a wind turbine design company that brought them early revenue while the technical side of the superconducting cables was worked out. The wind turbine side did marvelous, until their customer backed out, possibly because they'd learned (possibly inappropriately) to compete with AMSC. That situation is now the focus of a major court case in China. I expected the cable news to be more obvious by now, but the main news seems to be about the Tres Amigas Power Interconnector rather than sales of cables, regulators, or motors. They continue to make tens of millions of dollars but that's down from the hundreds of millions they made when Sinovel was their customer.
I am hesitant about the company because they seemed to have lost their momentum when their intellectual property was stolen. But that IP was for wind power, not superconducters. But, where's the news of the big orders for cables and the retrofits of large urban centers? The name change suggests that they are de-emphasizing superconductors, but that puts the focus back on wind power where they had their problems. Even if they win their court case, it will take years and will never fully compensate them for the delays (or me because I'll probably have been forced to sell by then. Bills must be paid.) I think they have tremendous potential, and their price/sales, price/book, and debt all are favorable. Power efficiency will continue to gain prominence and that industry should grow.
I might buy more if I had the discretionary funds, but I'd buy slowly as I listened for the sound of them gaining traction via sales.
DISCLOSURE LTBH since 2003 but the first shares were sold years ago. I bought more after the main drop, and have been surprised that the knife continued to fall. Unfortunately, I may have to sell if I can't find a job or sell my house.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com)