AMSC: Now We're Getting Somewhere, But Still A 'Hold'

2025-01-15 16:08:24 ET

Summary

• AMSC ASA has transformed from a Jones-Act-focused ship leasing business to a diversified energy and investment entity, making it riskier and less appealing.
• Despite a recent dividend increase and no debt, the company’s reliance on volatile Solstad Maritime makes it speculative with uncertain future earnings.
• The current valuation is high; I recommend waiting for a drop to 20 NOK/share before considering a speculative buy.
• The company fulfills only 2 out of 5 investment criteria, making it a cautious "Buy" with a target price of 20 NOK/share by January 2025.

Dear readers/followers,

Every company has a “Buy” valuation – well, almost every company. If you’re talking about a company that has absolutely nothing but debt on the balance sheet, then of course technically the valuation could be negative, and you as the investor would want to be paid to get the shares in order to reflect this....

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