Based solely on his deal with Duke, ambient was profitable in the last quarter of 2010, and gained more ground in the first quarter of 2011. But as a reader for the American Superconductor (AMSC) / Sinovel (601558.SS) know saga, over-reliance on a single customer can be very dangerous. You can get than ambient on Duke rely much more not to a single customer.
That is, Duke Energy not hyper competitive Chinese wind is companies with investments in the company's competitors. You are a regulated utility, and so their movements are transparent and conservative rather than the enigmatic and abrupt. Major changes in the Duke's strategy comes from the approval process and belong to the public record. Regulators tend to prefer one go-slow approach, what that client acquisition for companies such as ambient slow and painful, but also means that their customers are less vulnerable to competitors and start to finance rejection deliveries with little warning.
There are advantages to the Duke as a customer have also. Duke has been a leading provider of smart grid deployment, and in the light of the conservative utilities of that work when a smart grid solution is good for Duke, other utilities are to accept it rather than to choose a technology that is still not widely deployed. A potential market expansion can be merged with the smaller progress energy from the Duke. But it is also the risk, the Duke are brought by the progress of the technology's may energy smart grid project. Overall, though, I think the merger for ambient, will be good, because interoperability a natural choice for a merging firms makes trying them, consolidate the two systems.
Hope for NASDAQ listing
The customer is the main reason for ambient stock herding. The reasons to upbeat are current profitability of the company, strong balance sheet, and is planning a NASDAQ list target. Major shareholder of the company of Vicis capital, has ambient's Board permission to perform a share split to increase the company's current $ 0.08-$ 0.09 course about the $4 threshold needed given a list.
The company is also to their make, by having a PR firm, elevate communications of Boston. I'm not sure if the company has been retained, but I received my first press release from them as ambient their 2010 results in February published. They contacted me last week again, although she did not respond when I requested an interview with the CEO in preparation for this article. I wanted him in particular questions about their prospects for the search for other customers, and why nothing in 2007 R & D effort with ConEd has come. Review why past potential offers not materialize may give insight into the ambient future prospects.
That is the fact that only a customer has ambient is old news.
This is new news that a customer become lucrative press enough ambient in profitability is. I'm not sure how much of the current profitability due to stimulus-related smart grid is issues of Duke, but I trust that it will probably continue for a few more quarters, if only because ambient seems in no hurry complete his split on their back and get listed. So I'm betting that there is at least a few more good quarters get investors excited and give a quick return to where now in get.
Other investors seem to think so. The share price has found a bottom around $0.075 and began since Q1 and revenues pay the positive upward move.
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