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With an earnings report just around the corner, Capstone Turbine opened the new trading week by announcing another large re-order for its low-emission microturbines.

The repeat customer, identified as "one of the world's largest independent oil and natural gas companies" in the world, this time ordered an additional 22 C65 microturbine units.

The units are destined for the Eagle Ford shale play in South Texas, as were units purchased in previous orders, and brings the total to 64 microturbines ordered in three separate orders from this company.

Capstone's local distributor Pumps & Service again sold these units, according to the company PR issued on Monday morning, and regardless of whether credit goes to P&S or Capstone's products (or both), the fact is that the significant infiltration into the south Texas shale play is highly encouraging for the company and its investors.

That said, although the company announced record quarterly revenue last quarter, that trend must continue and the growing backlog needs to turn into growing revenue for investors to maintain confidence that the long trek to profitability is finally near for Capstone Turbine.

Shares once again broke through the two dollar barrier on Monday morning following the news release, but CPST has failed to maintain trading above that threshold for more than very short periods of time over the past few months.

However, that could all change if the recent positive news on the orders front is fueled by an even more encouraging earnings report that convinces the fairly large short position to cover.

Continue keeping an eye on Capstone.

Source: Capstone's Orders Keep Rolling In and Stock May Continue Upward Move