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No. of Recommendations: 2
I have followed this stock for years and have previously posted that I would look at it carefully in 2006 to see if the promise was still here (given the Navy contract, 2G wire, and grid products). To say the least, 2006 was a poor year and 2007 promises only flat revenue.

The loss of $30.9 million is significant. Although the company has cash of $65.7 million, the burn rate was supposed to start slacking in 2006 -- but it will continue through 2007 (and the company expects cash to drop to $38 million). Expect the company to sell more shares (which is a shame at today's stock price).

This year's heat wave once again calls into question the quality of the electrical grid. You would expect the news to fuel some speculation in AMSC but it has only hit a new 52 week low (although it is up $.50 as I write this). The same is true to the 2G wire facility being ahead of schedule. But, no luck.

I will read the SEC year-end filing next but, for an initial look, this company looks more like sizzle than steak...

Just one person's opinion...

W.D.
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