Capstone Turbine Heads Towards Profitability

Shares of Capstone Turbine (CPST) traded as high as $1.16 on Monday after the company announced that it has received an order, valued at two million dollars plus, for three C800 microturbine systems for a large wastewater treatment plant in Brazil. This order is Capstone's first venture into South America.

I'm still a fan of this company and its stock as a 'green pick' for my portfolio and, barring another market slide, it looks like the stock could be ready to maintain the $1 level from this point forward.

A key note from the press release - "The small, modular systems allow for easy and low cost installation" - indicates, in my opinion, cost savings; a crucial item for a company looking to improve its company's bottom line and head in the direction that investors want to see - towards profitability.

I'm still a buyer of CPST at a dollar and I like the future prospects of this company as the company continues to grow and expand globally.

Disclosure: VFC is long CPST.

Comments

[apppro:]

Well, I've been a buyer of this company for over 6 years and all I have gotten is heartache and disappoint. It's all about margins and productivity, and I am praying that this Fall withh be the turning point.

Right now it's in speculator hell and this broken market is it's master.

Aug 25 06:53 AM

[milo99:]

Sure the sales look impressive. But if and when they finally deliver it will result in a cost of goods sold of 2.4 million, with receipts of 2 million. Thats just the way this company works.

Aug 25 07:09 AM

[apppro:]

Yeah! So far it's been a fabulous product and poor execution. Maybe things will get better.


On Aug 25 07:09 AM User 476593 wrote:

> Sure the sales look impressive. But if and when they finally deliver
> it will result in a cost of goods sold of 2.4 million, with receipts
> of 2 million. Thats just the way this company works.

Aug 25 08:44 AM

[Zenfar:]

The C800 is one of the larger products Capstone sells.

www.capstoneturbine.com/

Selling C800s is good news IMHO as is opening a new regions. Real products take time to get right, Capstone is getting there, one of my favorites.

Long CPST, SPWRA, QTWW, ASTI

Aug 25 09:18 AM

[effeff63:]

I've been in CPST since Cramer first discovered it. I Profitted from covered call options when the stock was in the $4's, and still hold most of my original position...some companies take longer to get from R & D to profitable.

Aug 25 09:30 AM

[Bradley Flu...:]

I am thinking that engineering firm in England that put a CPST product into a Ford Escape was pretty cool and will most likely drive sales growth faster than any other product. I think expanding into the "green" motor home and commercial delivery van business will really greatly expand sales of the small size turbines. BTW, last pop in price was on that news.

Aug 25 11:19 AM

[Peter Pavar...:]

at this point its Profit or merge.

I think the 1000 MW machine will do well.

We need some Germans running the company.
Perhaps some French marketing.
Italian to watch over the latter.

Sep 04 05:55 PM

[jockum:]

alternative- westport innovations

Sep 10 06:15 PM

[User 497603:]

Dude...the sentence "The small, modular systems allow for easy and low cost installation" means it is small and inexpensive to install.....it has nothing to do whatsoever with cost savings. I have no idea how you get that out of that sentence.

Oct 08 05:30 PM