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No. of Recommendations: 3
After leaving the AMSC AGM in July, a couple of us shareholders were talking in the parking lot - and realized that we each hadn't asked the same question: Why was the shareholders' rights plan cancelled, without explanation, in June? The sole announcement from the company in the June press release was a single statement:

American Superconductor's Board of Directors voted on June 20, 2006 to terminate the company's shareholder rights plan (also known as a poison pill) effective as of June 30, 2006.

That was it. Intentionally uninformative.

Now that it is clear, to me, that anything remotely resembling success with 2g will lead to a demand that the company, by itself, can't possibly meet; the very real concern to me is that the company will be acquired for a relative song by one of The Big Guys. I haven't taken a chance on this hi-tech, hi-risk, game-changing - but still unprofitable - company, just to see it bought out between $10 and $15 or something.

Anyone else have an opinion?

jp
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No. of Recommendations: 2
I haven't taken a chance on this hi-tech, hi-risk, game-changing - but still unprofitable - company, just to see it bought out between $10 and $15 or something.

Anyone else have an opinion?


Insiders own 27.1% of the company. Institutions own 43.8%. So, the simple answer to your question, for me, is a company opposed buyout would probably not get any insider shares and not enough institutions own the stock to make a buyout probable.

The problem you mentioned is real. It would be interesting to know why the pill was dropped.

W.D.
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No. of Recommendations: 1
Where do you get your number of 21% inside ownership!? I checked the Wall St. J. and typed in AMSC in the box labeled Quotes and Research and then under "Key Facts" it lists an inside ownership of about 1.5%.
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Yahoo provides yet a third set of numbers:

% Held by Insiders4: 5.21%
% Held by Institutions4: 51.00%

4 = Data provided by Computershare


Who is one to believe??

jp
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No. of Recommendations: 0
I usually provide links. Sorry for the oversight. The 27.1% number comes from Yahoo:

http://finance.yahoo.com/q/ks?s=amsc&partner=mf

W.D.
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No. of Recommendations: 2
I noticed that press release the day it came out also. I suspect that was pushed by some of the institutional owners. I've considered AMSC a relatively safe investment (not likely to drop to zero) because it's technology is so valuable and it's price is so cheap. A Sr. VP at GE could buy the company and put it on his entertainment expense report.

I think AMSC has a shot at becoming a $5B to $10B company over the next 10 to 15 years. On the other hand, working over a saftey net isn't all bad.

Doug
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