Flash Alert: Super News from Down Under

About two weeks ago–St. Patrick’s Day to be exact–I issued an alert telling you that the Citron Research-induced pall over shares of American Superconductor (NSDQ: AMSC) was at best histrionic and, at worst, a way to cover short positions against the stock.

Since then, the company has landed another follow-on contract with Sinovel Wind Group as well as a couple of other deals with different Chinese companies. But deals inside China aren’t going to impress the cynics; for the doubters, the company had to prove it had competitive legs outside the world’s biggest and fastest-growing clean tech sector. Fair enough.

I bring you the recently announced deal with the Australian subsidiary of the world’s largest wind-turbine maker, Vestas Wind Systems (Denmark: VWS). Today, American Superconductor announced that Vestas Australian Wind Technology has placed an order for a large D-VAR-based grid interconnection system. What is a D-VAR-based grid interconnection system, you ask? These systems manage dynamic voltage control, power factor correction and post-contingency reactive compensation to stabilize the power grid and prevent undesirable events such as voltage collapse.

This is the largest interconnection sale on record for American Superconductor and puts the company’s D-VAR on the map. With the biggest player in wind power selecting American Superconductor’s technology to control a 206-megawatt field, the company will be front and center for future products both with Vestas and other companies.

American Superconductor is supposed to deliver the units within 12 months. If the firm can deliver the goods on time and on budget, that would boost its reputation further. American Superconductor is a buy up to 30.

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