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CUI $3.3M Purchase Order & AMSC settlement complete +2

09:53 27-Dec-18


CUI Global has followed up yesterday's news with the announcement of $3.3M of purchase orders in Texas.  Since the company typically brings in quarterly revenue in the low $20M range, the amount is significant, as is continued progress in North America.  Management also touts new customization and analytics business on the back of a growing reputation.  Given the financial situation and lack of time frames, I find myself wondering how much additional development and expense will be required, but I do think CUI is turning the corner.  With the market down again today, though, it remains to be seen whether or not investors will be willing to give the stock lasting credit in advance of actual results.

AMSC also reports that it has received $25M worth of Renminbi from Sinovel, which completes that settlement.  I hope the company has facilities to convert the currencies quickly and efficiently.  Despite some retreat in the shares, I still am not interested in the AMSC stock at current prices, but I will be watching trade talks in China starting the week of January 7th.  Although I remain hopeful about the outcome of these in the short-term, everything I've seen still points toward America taking short-term gains while ceding long-term influence.  I continue to think countries like India will be beneficiaries and look for further resurgence in EBIX shares over time.  However, I'm not alone in worrying about 2019 from an overall economic perspective, which makes high yields the best allocation for most capital.