On April 5, American Superconductor (AMSC) announced that its major customer, Sinovel Wind Group, refused a product shipment. With Sinovel accounting for 73% of AMSC revenues, the news sent AMSC shares diving from $24.88 to $14.47. Since then, the stock has fallen further, reaching $8.10 on June 1. While the price drop may be appropriate given the fundamentals of AMSC, which we examine later in this article, there is one curious circumstance that suggests there may be an opportunity here. AMSC has a large beneficial owner, Kevin Douglas, who has accumulated a 22.8% stake in the company, buying shares both before and after the bad news. Let's take a look at who Mr. Douglas is, and what we can learn about AMSC from his track record.
We examined ownership reports filed with the SEC for companies where Mr. Douglas was a 10% beneficial owner. We excluded Stamps.com (STMP), where Mr.
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Melissa George Cameron Richardson Chandra West Kasey Chambers Megan Ewing
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