American Superconductor (AMSC)
By
Brendan Coffey, Analyst and Editor of
Cabot Green InvestorFrom Cabot Wealth Advisory, 9/15/08
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American Superconductor (AMSC) is a company that actually had a long promising business in superconductive transmission wires for utilities, which was a great idea, but a little ahead of its time and not profitable. But last year the company bought an Austrian wind turbine designer.
The move was shrewd, since wind is a complementary product to the wire and electrical system American Superconductor already had been producing. The combination of the two businesses has been classic razor and razorblade marketing–American Superconductor sells its designs to other companies that manufacture and market turbines. With the sale comes the right to sell the electrical components for each turbine built, something other turbines designers don’t require.
The result is booming revenues—sales for its latest fiscal year, ended March, were up 115% to $112 million and are expected to grow to $180 million this year thanks to a major client in China and the uptick in the need for its superconducting wire that will help transmit all that new power.
It’s stocks like those that we love to find. We recommended AMSC to readers of in May. Following Cabot’s time-tested method of discerning technical signals and market momentum, we recommended that readers sell their positions over the summer for a total profit of 38% in just three months.
Editor's Note: Brendan Coffey is the editor of Cabot Green Investor. If you're ready to focus on the next great wave of growth, Cabot Green Investor might be right for you. It applies Cabot's time-tested growth stock picking and market timing systems to the fast-growing Green sector.
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