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American Super Conductor may have the wind behind it again!


There may be a case for a speculative buy into American Super Conductor stock. It could be about to rebound.

When insiders, such as the company directors add to their holdings, this can often be a very compelling reason for investors to prick up their ears and give the corresponding company stock another look.. Usually the directors, large owners, and officers within a company have greater insight into the company than the typical individual investor. Insiders often have a better sense of when to move their money to capture value.
The stock price of American Superconductor Corporation (AMSC) has been hammered in the last 2 years. But this company is still a major global provider of wind and power grid products and services. In 2011, the company fell victim to one of the worst cases of corporate sabotage in recent history, as it was undermined by former Chinese customer Sinovel. Since then, the company has struggled to stay afloat after being betrayed by its largest client, which once accounted for 80% of its business revenues. Perhaps this is what makes the most recent insider purchase by Kevin Douglas something worthy of note. Kevin Douglas is a 10% owner in the company. Even amidst the initial outbreak of the Sinovel news in April 2011, he bought the company's stock by the millions. On November 21st of this year he added even more shares. In the latest filed Form 4, Kevin Douglas recently added 161,964 shares at a purchase price of $2.56 for a total value of $414,879.This could be a significant purchase. A possible clue as to his most recent action may lie in the ongoing litigation proceedings the company is now pursuing. ANSC is actively pursuing damages that amount to $1.2 billion in the Chinese courts. Perhaps progress on this front could make the company something similar to a lottery ticket - with a steep upturn in the stock price! The company may have some good news in store and in the meantime the actual fundamental business of the company remains compelling. At the current depressed price, AMSC shares look like a good speculative buy.

See our Ethical & Socially Responsible Portfolio for more ideas on Ethical & SRI companies


Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.