Can an Upcoming Court Decision Bring This Zombie Stock Back to Life?

There is an old Irish blessing that begins "May the wind be always at your back." Maybe the wisdom and luck of the Irish elders was foretelling of another story—namely that the wind sector will emerge as a credible energy source globally. This leads us to Massachusetts-based American Superconductor Corp (NASDAQ: AMSC  ) , a name that is valued 15 times lower than it was in 2010 when wind was slated for more upside. The economic crisis facing the U.S., the delay in adopting wind, and an epic battle regarding alleged stolen technology by China's Sinovel havw plagued AMSC. However, recent industry developments to move ahead without the PTC by companies like Siemens (NASDAQOTH: SIEGY  ) and Enel Green Power  (NASDAQOTH: ENLAY  )  only solidify that wind power should once again be on investors' radars.

There is certainly risk in going long AMSC, but if it can show that Sinovel stole AMSC's intellectual property, shares of AMSC could be worth the risk considering it serves both the utility and industrial markets and provides the brains and technology designs for more efficient wind turbine power generation. Additionally, AMSC, once considered a General Electric (NYSE: GE  ) takeover target, is seeking $1.2 billion for its claim against Sinovel, and that is nearly the full 15 times higher valuation the company was trading at in 2010. Even a fraction of that settlement could see shares of AMSC vault higher, but I again want to point out this is a risky idea. 

Growth you can put your money behind -- our CTO did...
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Read/Post Comments (3) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 10, 2014, at 11:28 AM, Eohippus617 wrote:

    They have proven that Sinovel stole their inellectual property and it has not mattered. the Chinese government has not cared and that is where the case is being tried.

    I am much more interested in their possibilities with the HTS Wire and the Degaussing project they are doing for the Navy- that is where the opportunity lays and you did not even mention them.

  • Report this Comment On January 15, 2014, at 10:32 AM, jeffin wrote:

    There is no longer any "alleged" element about this case. The "alleged" thief was working in AMSC's Austrian branch. when he sold the codes to Sinovel. He was subsequently found guilty (he confessed & provided evidence pointing to Sinovel's role), was sentenced to prison, has served his time, and has been released.

    There is no issue about whether he and Sinovel are guilty of the theft. The only issue is whether China is going to allow AMSC to bring their civil suit against Sinovel before a Chinese court. The industrialized world is watching to see whether China is going to offer protection for Intellectual Property rights. China's status in the WTO is at stake.

  • Report this Comment On January 24, 2014, at 7:53 AM, cica0123 wrote:

    Please take a look at AMSC contract FDCG08045-01, from mid. 2008, you'll see the fact that AMSC sells core components with software included. There is also low voltage ride through function in the contract.

    Some poor events from mid. 2011 are used to cover terrible mistakes of the company management and to find escape formula through the courts.

    If the evidences still exist, someone might wanna have them published, to bring some fresh wind in the case. There is always a way for the truth to survive ;-) ...

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2781066, ~/Articles/ArticleHandler.aspx, 9/1/2015 2:10:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

John Licata

John Licata is the Founder & Chief Energy Strategist of Blue Phoenix Inc. You can follow John on Twitter @bluephoenixinc

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 3:59 PM
AMSC $5.45 Up +0.78 +16.70%
American Supercond… CAPS Rating: **
ENLAY $4.46 Down -0.05 -1.11%
Enel S.p.A. CAPS Rating: No stars
GE $24.82 Down -0.34 -1.35%
General Electric C… CAPS Rating: ****
SIEGY $99.14 Up +0.02 +0.02%
Siemens AG (ADR) CAPS Rating: *****