American Superconductor Bull Keeps Buying

NEW YORK ( TheStreet) -- American Superconductor ( AMSC) has had trouble breaking free of the tag that it's ever vulnerable to reliance on revenue from Chinese wind power giant Sinovel, but one American Superconductor insider keeps buying up shares. If the constant press and short investor barrage, bent on taking down American Superconductor stock -- which reached a crescendo in a Barron's December piece alleging that Sinovel's numbers aren't even reliable -- has an equal and opposite reaction, it's the insider stock buys being made by Kevin Douglas, founder of Douglas Telecom.

American Superconductor sells electrical components to Sinovel for wind turbines that represent roughly 80% of its revenue.

Douglas purchased another $8.5 million worth of American Superconductor shares this week, raising his stake in the company by 5%. Douglas was a big purchaser of American Superconductor shares throughout the second half of 2010.

What's more, Douglas has not just been bottom-fishing in American Superconductor shares. While his latest purchase came at a share price of $28.46, in November he was purchasing American Superconductor shares above $36, buys which were notable for occurring at the same time that American Superconductor's CEO was selling insider shares at the same price.

American Superconductor shares were up 2% on Friday morning, though at $28.26, the shares are still below both 50-day and 200-day moving averages. It was also a bullish morning for the markets on Friday and clean tech stocks generally gaining ground.

Douglas first declared a stake of more than 5% in American Superconductor in August 2006.

Douglas' latest purchase price was above the price at which American Superconductor shares were trading on Friday morning, yet given that shares have been trading within the $27 to $29 range ever since the Barron's piece on Sinovel sank the company's shares, the latest buy is less a major show of confidence in the stock than a buy at a share price that has been near a recent floor for the stock.

More generally, though, inside sales tracker Insiderscore.com says that Douglas' buying of American Superconductor over the past half year "is a strong show of confidence by Douglas, who is an under-the-radar entrepreneur-turned-investor known for taking outsized stakes in companies such as IMAX Corp (IMAX) and Westport Innovations (WPRT). It's obvious Douglas likes what he sees and is putting his stamp of approval on the deal," the insider sales tracking firm wrote during Douglas' buying binge in late 2010.

And one could add it's obvious Douglas doesn't spend too much time pouring over, or fretting about, Barron's accusations.

Meanwhile, China finally surpassed the U.S. as the largest wind energy market in the world in 2010.

-- Written by Eric Rosenbaum from New York.

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