I won't say that AMSC would not be impacted by a overall market sell-off..
However, given the overvaluations of the general markets, there may be a move to value..
And yes.. cough, cough, some might argue that AMSC hardly represents value.. But I think that it does given what we're learning about DVR sales, as well as the upcoming Navy contract that may require the hiring of up to 500 new employees.
THAT represents growth... new hirings that would total, conservatively speaking, up to $25 million in new payrolls alone (averaging $50K per new employee). This projection doesn't count revenues from material costs, or actual equipment.. merely payroll.
We all see the upcoming turmoil and threats to US Navy ships in the ME from naval mines. This is a huge concern when we're talking about a billion dollars+ for new destroyers, and not to mention Aircraft Carriers.. etc.. Frankly, to the US Navy, it's peanuts when it comes to protecting those expensive platforms.
And then we see the increasing vulnerability of the electrical grid, as well as the challenge to bring solar and wind assets online.. and this bodes well for AMSC as well.. Then Inox, which is making a major push to become the dominant wind turbine manufacturer to rival the Chinese, as well as to provide energy independence to India..
There is a lot of value here.. It just may require a year or more to see it truly be reflected in the company's reports.
Btw, while I wasn't happy to see the price of the recent offering, I am VERY happy to see that it was Kevin Douglas stepping up. He appears to be one the ultimate value players, and the money invested hopefully puts a floor in place upon which to support the stock price, and weather any market turmoil.
Hawk |
