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As you know, the electricity delivered by the utilities is subject to all kinds of interruption, noise spikes etc. It cannot be relied upon for sensitive applications like computers, copiers, and even more so by the complex switching systems used by telephone companies, internet companies etc. A number of competitive alternatives currently serve this market for "clean power"
The basic approaches include
1.battery backup (APCC is a leader here), Evercell EVRC and Bolder Technologies BOLD
2.flywheel "Ride through" systems (Active Power, International Computer Power ICP, Trinity Flywheel Power,
3. Mini and Micro turbines, Teledyne Continental Motor, Caterpillar CAT, Williams International, Allied Signal ALD (now Honeywell HON)
4. Diesel Generators, Caterpillar CAT, Cummins CUM, Generac.
Typically, these systems switch to the alternative source whenever there's a glitch in the power line.
AMSC's approach goes right to the heart of the problem, the power being distributed by the utilites. Their product uses high temp superconducting coils which store vast amounts of energy. When a glitch occurs the AMSC product switches to this reserve to deliver clean power at very high power levels.

AMSC does appear to have a leadership role in the development of the superductor which is applicable to the very high multi megawatt levels which no one else seems to be addressing yet. The products being developed by AMSC would provide extremely clean power.
AMSC is also developing superconducting cable for power transmission which has the potential for radically changing the nature of power transmission making it much cleaner, and less expensive to transport. They are also working on applications for electric motors. They are under contract to develop a 25,000 HP motor for Navy ship application.
Eaton Corp ETN and Emerson Electric EMR are also going to compete with AMSC. You can bank on the fact that other large companies will get into the act as this market develops and it becomes clear that it has huge potential.

The market for AMSC's product is huge. Based on the types of companies that have been funding their research, it seems clear that the technology and this company are highly regarded by people in the know. They seem to have a pretty competent management team but they really have no track record of being able to profitably manufacture and sell these products. This company could be a 100 bagger or a total loser. I'm afraid only time will tell.
Personally, I intend to buy a few shares to stick my toe in and watch what happens. Not ready to make a serious committment. You should also look at CREE, They make the "Power Switch" which lies at the heart of the future switching of power at high power levels and is a comlimentary product line for the power systems of the future. They do have an excellent track record of profitable performance and growth. In my opinion they are also a 100 bagger potential.Good Luck.
Note that a good deal of the above info comes from "The Power Report" from Gilder Group as well as AMSC's web page and CREE's web page. Check them out.
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