Since American Superconductor's
But this week, the company got a financing lifeline, a possible sign that investors are willing to put some money down on the company. An unidentified investor bought $25 million of 7% convertible notes and warrants in the company, with a company option to require another $15 million purchase. This could be a bridge to the future, if the company's products can begin selling again.
American Superconductor has been hit hard on two fronts -- its wind business and its emerging inverter business. In wind, Chinese manufacturers have entered the market with a vengeance and the financial crisis dried up financing for the renewable resource. Even big players like Vestas, GE
In the inverter business, nearly everyone is suffering. Falling costs in both solar and wind have meant that pricing pressure comes down hard on established players like Power-One
No turnaround yet
I'm not suggesting that this is a sign that American Superconductor's fortunes are turning around, but it's at least a sign that investors are willing to take a small chance on the company. It's a long road ahead, but any good sign the company gets is good for investors.
Fool contributor Travis Hoium owns call options in American Superconductor. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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