Why American Semiconductor Stock Just Jumped 10%
One day after winning a modest-size contract to supply wind turbine electrical control systems to a wind turbine manufacturer in India, shares of American Superconductor (NASDAQ: AMSC) shot 10% higher this morning. As of 11:55 a.m. ET, the stock remains up 8%.
Helping to sustain the momentum: A price target hike this morning from investment bank Craig-Hallum, which specifically cited the Indian contract as a reason to buy American Superconductor stock.
As American Superconductor announced yesterday, India's Inox Wind Limited placed an $8 million order for control systems for its wind turbines. This was a "follow-on" order -- meaning Inox is already an American Superconductor customer. Inox is also a pretty enthusiastic customer, having made American Superconductor its exclusive supplier of these systems. Also, this new order is bigger than the last, and Inox asked for "immediate" delivery of the control systems.
Source Fool.com
