Sunday, May 20, 2007

American Superconductor (AMSC) Squeeze Coming?

This stock is knocking at multi year highs and it looks like the shorts are trapped. Almost 6 million shares short with an average volume of 380k means it would take the short sellers 15.65 days of buying to cover! Earnings are due on Thursday, maybe the company will provide a catalyst in their comments that triggers a breakout and a good old fear driven bout of panic buying by the shorts?

Here is the description of what the company does from Google Finance.

American Superconductor Corporation (AMSC) is an electricity solutions company. AMSC develops and manufactures products to improve the cost, efficiency and reliability of systems that generate, deliver and use electric power. AMSC conducts its operations through three business units: AMSC Wires, a developer and manufacturer of HTS wire; SuperMachines, a designer and manufacturer of rotating machines based on its HTS wire, including electric motors, generators and synchronous condensers, and Power Electronic Systems, a designer and manufacturer of power electronic converters and integrated power electronic systems that increase power grid reliability and throughput. On January 5, 2007, the Company completed the acquisition of Windtec. Windtec is operated by the Company's Power Electronic Systems business unit. In May 2007, the Company completed the acquisition of Power Quality Systems, Inc.