Wind power blowing in China
"American Superconductor (NASDAQ: AMSC), a U.S.-based play on wind power, is benefiting from demand in China," saysBrendan Coffey in The Cabot Green Investor.
"AMSC posted net income for its first quarter of $1.8 million, or 4 cents a share, compared to expectations of a slight loss and the per-share loss of 14 cents in 2Q 2008.
"Drop out one-time items, and AMSC earned 12 cents a share -- an impressive result for a company that didn't ever post a profit until last quarter.
"Sales jumped 83% to $73 million. One adage in retail is that the best place to find more sales is with existing customers, and AMSC did just that -- much of its sales came from Sinovel, the leading China wind turbine company, which uses AMSC's designs and electrical components for its turbines.
"Sinovel boosted its standing order with AMSC by $20 million to a total of $470 million. Next year, at least another nine companies globally are scheduled to start using AMSC's designs and components.
"In the long-run AMSC is looking good, with 40, 42 and 45 likely to be resistance and 30 likely to be support. If you don't have some in your portfolio already, buying on dips is the best way to fold in a position."
