AMSC has been known as a wind power play but what is clearly heating up is its disruption-resistant superconductor wires for smart grid utilities. According to the Alternative Energy Stocks Blog:
American Superconductor’s wires run underground inside cable systems that are less susceptible to nature or terrorist attacks than the current technology. A high temperature superconductor has almost no resistance to the flow of electricity and is imbued with the capacity to transmit 150 times the power of copper wires. A key characteristic of AMSC’s superconductor technology is its ability to self-heal by automatically isolating dangerous power surges. The feature allows a smart grid to survive attacks and natural disasters without impacting the rest of the chain.
As for major developments for this potentially disruptive technology:
AMSC and LS Cable, Ltd., a Korean manufacturer, recently agreed to co-market 10 kilometers of commercial superconductor cable in power grids over the next five years. LS will sell cable systems containing the wires to utility companies across the globe.
Last month, the Tres Amigas Project announced it will use AMSC’s superconducting technology to link the three major US power grids: the Eastern Interconnection, the Western Interconnection and the Texas Interconnection. The arrangement will give renewable energy companies the means to sell power through a superconductor pipeline for the first time.
Pretty interesting huh? The chart is pretty interesting too as the flattening of the MACD near zero (sign of accumulation) and the convergence of the 32-day and 65-day moving averages (demand and supply reaching equilibrium) is like a coiled spring and we could have a sizeable move in the next few days, most likely to the upside. It has also managed to maintain its gap from $28-$30. Clearly a stock to watch.
Disclosure: No personal position
