The business model was dead wrong: a company cannot rely on one client (i.e. Sinovel) and on one revenue stream (i.e. wind turbines)
However, I believe that the turnaround is coming, because
-AMSC is spreading the revenue base all over the world, with bigger orders coming in;
-AMSC is diversifying the revenue base from products. It's not just the wind business anymore, it's GRID solutions and ENGINE TURBINES for the navy are to generate revenue as well;
Catalysts as to why I'm holding:
-The confirmation of the consolidation of the corporate headquarters (cfr article bizjournals) and a possible move to Washington (although I think the move to Washington has a more significant impact on the company than the consolidation itself;
-The possibility of a good outcome of the Sinovel law suit, where IMO Sinovel will loose, but where AMSC should not rely on the financial outcome.
-Alternative energy and power solutions is gaining market share and it will only continue to gain;
-The entire American and European grid needs renewal
-It is definitely possible that AMSC has new products in the pipeline, or perhaps they have JV teaming up, all under the assumption that AMSC can finance those deals (there is the possibility of the $ 700M law suit.
I'm holding. See you guys at the State of The Union.