American Superconductor (AMSC:Nasdaq) manufactures and sells power electronic converters and superconductor wires to energy companies. The Company is a leader in the alternative energy market of wind energy. With the price of oil skyrocketing, causing the price of electricity to rise, wind energy will become an essential alternative energy source throughout the world.
American Superconductor reported that revenues increased a whopping 115% from $52.2 million for fiscal year ended March 31, 2007 to $112.4 million for fiscal year ended March 31, 2008. American Semiconductor also reported a gross profit of $32 million for fiscal year ended March 31, 2008 compared to a gross loss of $319,000 for the prior comparable period. The Company had cash, cash equivalents and marketable securities as of March 31, 2008 of $143.3 million.
American Semiconductor has expanded into China and recently announced a $450 million contract with China's Sinovel Wind Corp., a wind turbine company. Needless to say, China is a huge growth market and has been very agressive in its efforts to adopt alternative energy sources.
American Semiconductor's stock price has declined 26% from its fifty-two week high of $47.53, to close at $35.03 as of the close on June 27th. This presents an opportunity to purchase a fast growing company in an exploding industry that is becoming more important and vital not only to the environmental issues of nations but also to their financial stability as the price of oil and other important commodities continue to rise at meteoric rates.
Reference:
http://www.amsc.com/investors/report.html
Company 2007 Annual Report
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