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No. of Recommendations: 8
Cyborg brings up a great point. As promising as AMSC is, it has to reach a certain price point/utility factor to make it into mainstream application. It will only be at this point that AMSC will live up to the Intel comparisons that many make. If Intel chip price points had never come down to mainstream levels computers would have remained a niche - high-end only market and Intel would be worth about 1/50th (give or take) its current value, no matter what the actual need projected for computers would be.

AMSC is in a similar circumstance. The challenge is to make this price point. If AMSC can do it, and do it in mass quantity, AMSC will be a monster stock from here. If it can not, regardless of the need, other solutions will be utilized to resolve the problem and AMSC will be very disappointing.

So keep your eye on how the company progresses in this fashion. We know the company is far and away the technological leader. We know the market opportunity is huge. We do not know if AMSC can deliver. What we do know for certain is that at its current price point it cannot deliver in mass quantities and is currently relegated to very niche roles.

I note the CEO does not use definitive language in reporting the $10 price point, but uses language that this is the goal, but not that obtaining the goal is a given. It is not a given that AMSC will move beyond the niche - it is a vision. Lets see how they progress.

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