|My end of year review of AMSC|
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 was $0.123B mid2016 is $0.105B EOY2016 )
AMSC sells goods and services to the power infrastructure industry. The original business was based on superconducting cables, and their utilization in voltage regulators, motors, any electrical equipment that can benefit from more efficient power transmission - as long as it can accommodate the necessary support equipment. A second major business venture is enabling wind turbine systems through design services. A third major business venture was their part in a collaboration that would tie all three major US power grids together.
Considering the benefits of more efficient power transmission, generation, and integration, AMSC should be doing very well. While they are growing revenues sufficiently that an extrapolation would suggest profitability in 2017, they have yet to deliver a breakthrough sales success (aside from the ill-fated Chinese wind turbine business.) So, while they may not be meeting my expectations of positive, disruptive, and growing technology company, they may have a good business which should begin to attract more significant investor attention. The stock, however, is relatively flat for the last six months, down less than 10%.
I continue to hold because, as I've written in my book, Dream. Invest. Live., my core investing strategy is to buy small companies before they are profitable, hold until they are profitable, then hold longer until the market grants them a premium or I find something better to buy. This close to profitability would be an odd time to depart. If they convince the market that they will steadily and significantly grow, then the stock can benefit from the company's good position (even if that position falls short of my expectations.)
DISCLOSURE LTBH since 2003 but the first shares were sold years ago.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com