This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The 5 Dumbest Things on Wall Street: July 15

5. American Not-So-Superconductor

Shares of American Superconductor Corp. (AMSC - Get Report), which makes electrical systems for wind farms, fell 5% this past Monday and another 5% on Tuesday. The stock is down nearly 40% since mid-April and more than 70% year-to-date.

Sorry guys, but that's not "super" at all. In fact, that sucks.

American Superconductor was hammered (again) after announcing it will be restating results lower for its second and third quarters of 2010. The company said revenue for the fiscal quarters ending in September and December 2010 will be reduced to $98 million and $43 million, respectively, from previously reported amounts of $101.5 million and $114.2 million.

Why is American Superconductor subject to such a massive restatement?

Well, it used to have a policy where it recognized a sale after its customers received shipments but before they paid their bills. Now, the company says that "revenues associated with unpaid shipments to certain Chinese customers" will not be recognized until paid.

Oh please. Don't tantalize us with talk about "certain Chinese customers." We all know the mystery customer is Sinovel Wind. And you know them better than anybody else since they accounted for almost three quarters of your sales last year before dumping you in favor of their own subsidiary, Dalian Guotong Electric.

Look, we all remember what happened in April when the stock took its last big dive. Sinovel refused to accept a shipment and ducked out on a $56 million tab that American Superconductor had already booked.

The company said Monday that it didn't do any business with Sinovel during the first quarter of 2011, so American Superconductor seems to be smartening up somewhat. However, they would be much better off if they stopped wasting everybody's time playing guessing games, and spent their energy replacing Sinovel's lost revenue.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMSC $11.10 11.00%
C $46.66 0.83%
DB $18.48 -2.50%
GS $166.35 1.40%
LL $14.71 -1.30%


Chart of I:DJI
DOW 17,901.57 +127.93 0.72%
S&P 500 2,079.93 +14.63 0.71%
NASDAQ 4,813.0850 +37.7270 0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs