Let's reflect on something..
Before this PR, how many of us actually expected ANY kind of settlement out of the Chinese Courts litigation?
I didn't.. And from all the comments I've read on various discussion boards, we all believed the Chinese were going to obstruct any form of justice from their court system.. So, ultimately, this settlement, related to the Civil litigation in a Chinese court is pure gravy.. never expected to occur in the first place.
We ALL have been looking at this Federal Court Case where Sinovel was criminally convicted to establish some form of sentence that would work to make AMSC whole.. And we've been assuming that it would involve something to do with the $50 Billion in Trade Tariffs levied as a result of IP theft by Chinese companies/govt.
This settlement in the Chines courts, in my opinion, are aimed at trying to see if they can obtain some leniency on the Federal sentence due tomorrow morning.
But, as AMSC's CEO has stated, they have very little control over the Federal Case.. It's gone to the conviction stage, so it's truly difficult to believe that any charges will be withdrawn.. Had this settlement occurred prior to the conviction, THEN AMSC might have been able to agree to refuse to bear witness before the Judge against Sinovel, rendering the case moot. But it's gone too far now..
The most I see, in light of the settlement, is the Judge rendering a suspended sentence, based upon reconciliation between Sinovel and AMSC. Nothing in the settlement really impacts the proven crime that was committed on US shores by Sinovel.
So I'm waiting earnestly to see what the Judge issues tomorrow, and then for the post-sentencing Conference Call where McGahn can answer questions from the analysts.. or shareholders (which may happen at the shareholder's meeting)..
Again, I never expected this settlement.. I consider it gravy, and I think the market reacted foolishly..
Hawk |
