SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : American Superconductor (AMSC)
AMSC 36.53+4.9%Nov 6 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: David C. Burns who wrote (765)6/28/2013 2:43:33 PM
From: Art Bechhoefer  Read Replies (1) of 973
 
Hmmmm. I didn't know Sinovel had any offices or presence in the U.S. I wonder how the prosecutors could even serve papers on them. On the other hand, if Sinovel does business in the U.S. (i.e., still does business), then life could get pretty miserable for them.

My take on this issue is that, given the problems the U.S. is having with China, lately on their allowing Snowden to leave Hong Kong for Moscow, rather than extradite him to the U.S. on spying charges. In addition, China has dragged its feet on issues involving Syria, Iranian oil, and offshore islands whose nationality is claimed by Japan. Not to mention how China allows North Korea to keep doing stupid things that aren't even in China's interest.

So you put all these issues together, and you get a good case for retaliation on several grounds, which could include banning Chinese products that use AMSC patents without a license as well as banning products imported by companies doing business with Sinovel. If the U.S. chooses to use a little muscle here (rightfully), then we could see a quick settlement in the form of a cash payment of, say, $1 billion or so, without admitting guilt. This would give AMSC the needed cash and allow it to move ahead on both its wind power and grid business segments, without diluting existing shares, and without having to sell assets to make ends meet.

Art
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext