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No. of Recommendations: 3
(Market Cap = $292M)

INTRO Here's my semi-annual exercise to see if I remember why I won the stocks I own. I post it in case it helps others too.

American Superconductor is crossing the line between speculation to investment. They have products: wire, motors, and power managers, so they have revenues. They also are just enterring the markets and are already updating their offerings. The tough sell is that they are selling high-tech equipment based on superconductivity to an industry that has to be very conservative. I think that will succeed, but that conservatism will slow their acceptance. After they are accepted though, they have a good chance of sweeping through the industry.

The business is doing better than six months ago. My understanding of it was incorrect though. I thought they would replace the power lines that we see strung from tower to tower across the country. As I understand it now, and I could be wrong yet again, their cables replace those on and under the ground. This reduces my outlook, but not enough to make me sell. They are doing well with their cables, motors and power management units. I like the fact that they have more than one product line and am pleased that the offerings aren't too far away or already stale. I recently bought more, prior to my insight about the overhead cables, so I suspect that I won't buy more unless I find some new insight and some new cash.

DISCLAIMER LTBH since 2003 and bought more this year. I will HOLD because I over-estimated their potential revenues, but continue to like their existing product strategy.
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