Chinese Negotiating Tactic?
AMSC Lost Almost 50% of Market Value in One Day
NECN | BBJ Report | Negotiating in China | Apr 14, 2011
American Superconductor (AMSC) tanked when Sinovel Wind refused to accept a shipment earlier this month. The stock opened at $24.88 on April 5, 2011 and sank to $14.47 by the closing bell. AMSC continued to shed value and closed at $12.81 on April 15, 2011. We hope to see a recovery soon.
NECN frames it’s report:
“Learning to do business abroad means learning the culture of the country you’re in. It’s something American businesses have discovered while trying to negotiate in China. Now if only they could get their investors to understand too.”
Ouch! That’s quite a learning experience.
UPDATE: June 1, 2011
AMSC closed today at $8.11—a single day loss of over 24% market value directly attributable to the Sinovel situation. AMSC has shed $16.77 of its market value—more than 67%—since we first reported.
Insult to injury: RECHARGE reported yesterday on Sinovel’s good fortune:
China’s largest wind turbine maker, Sinovel, unveiled its 6MW prototype yesterday, marking another milestone in the country’s rapidly developing wind industry.
Shares in Beijing-based Sinovel jumped the most since its January listing in Shanghai, rising 8.8% to 60.99 yuan ($9.40) as of mid-morning Tuesday.