AMSC stock soars following likely Navy deal
Stock in Devens-based AMSC shot up more than 30 percent this week after the company announced expanded relationships with both the U.S. Navy and energy provider Eversource.
This week, the manufacturer of wind energy equipment, formerly known as American Superconductor, announced that the Navy had sought out the company for its high temperature superconductor (HTS) equipment. A contract is expected to be signed after April 28, the company said in a statement.
Analysts had been looking for the company to secure additional orders and customers amid continued losses – $22.7 million in the last year. AMSC has been rebuilding its customer base since it became embroiled in a legal battle in 2010 with its largest customer, Sinovel Wind Group of China, over alleged theft of trade secrets.
Since the Monday announcement, AMSC stock, which trades on the Nasdaq exchange, rose over 35 percent as of this morning, rising from under $8 to over $10.50 a share. The Nasdaq exchange was up .14 percent since Monday.
Additionally, AMSC has established a relationship with the Navy to develop HTS power cable hardware for transmitting ship board power. This application includes degaussing systems, which reduce the magnetic signature of a ship, which can interfere with undersea mines' ability to detect and damage the ship.
The company has been working with the Navy to streamline the manufacturing process and is expected to meet the delivery and cost targets associated with full ship production, AMSC said.
Eversource
The company also announced that that Eversource Energy has joined the AMSC Homeland Security Resilient Electric Grid (REG) Utility Group. The group works with governments with the aim of reducing the impact to critical electrical infrastructure caused by terrorism, extreme weather or equipment failure. Eversource will provide valuable feedback on evaluating technologies and overcoming challenges faced by urban electric utilities, according to AMSC.
"The urban electric infrastructure is the backbone of our economy so it is imperative that steps be taken to further protect our nation's grids," said Daniel P. McGahn, AMSC’s president and CEO. "We look forward to (Eversource’s) insight on the challenges facing the grid today and how urban electric utilities are preparing for the future."
WBJ Web Partners
Most Recent
Most Recent
0 Comments