See the whole Seeking Alpha article for very promising analysis
To say that American Superconductor Corporation (AMSC) has had a rough couple of years would be a huge understatement. In a little more than two years the company has dropped from about $30 to the current market price of $2.68. The company now trades at only 1.1x tangible book value, when it was about 5x this level two years ago.
The primary reason for the company's fall from grace has been the loss of a major Chinese customer due to a scandal involving bribery and theft of intellectual property. Although it is entirely unclear at this point whether the company will be awarded anything from the Chinese courts, where it has several lawsuits pending, the downside risk for AMSC seems to be minimal now as the negative sentiment is well priced into the stock. Meanwhile the core business around the wind turbine market is set to rebound in 2013 and 2014, and the power grid technology business continues to be strong. With losses from operations shrinking on improved business prospects, a recent upward revision to the company's outlook, and a potential legal settlement on the horizon, AMSC seems poised for a strong turnaround
Only think I would have added is some comments about Inox Wind's recent comments, about Dongfang going into Australia with AMSC turbines and of course the 5.5MW turbines that are being tested with two different licensees. These have the potential to give some larger contracts in the medium term.
China is getting way too big to bother about $400-$500M fines... They will pay AMSC and protect their reputation to attract more foreign investment, you will see... Even a $100M payment will put AMSC into green again!