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 $1.18B)
American Superconductor manufactures superconducting cables, electric motors, power balancers, and designs key wind turbine components. Their main effort is developed from the superconducting cables, which for power are akin to what fiber optics were for telecommunications. The company is ramping up to production quantities, and in the meantime has made money from the power balancers (DVARs) and the wind turbine business. Their cables are sheathed in liquid nitrogen, so the runs are shorter and heavier than conventional cable, but are good for high density applications, or places were there isn't enough room for conventional cables. Big cities can be big customers.
I think they are still a speculative company because their cable fabrication facility is not mature yet.
They are in a good industry, energy infrastructure; in a favorable environment, because the political environment wants to fix the world's environment; but, utility industries typically move conservatively and slowly. The brightest spot may be China, but those business dealings are harder to monitor because of China does not require the same level of business transparency.
I will continue to HOLD because I think they are within a year or two of numerous significant news items as their products progress, but do not plan to buy because this stock will probably move more slowly than others I own.
DISCLOSURE LTBH since 2003 but the first shares were sold a while back. |
