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Although trading in much different sectors, shares of Capstone Turbine (NASDAQ:CPST) have had a similar trading pattern as Titan Pharmaceuticals (OTCQB:TTNP) - another company long followed by VFC's Stock House - over the past couple of years, and just on the heels of TTNP's most recent price run, shares of CPST are again starting to roll.

Again having dropped below a buck a couple of months ago after flying to the two dollar earlier in the year last year, Capstone has rebounded from those lows and closed Thursday at just below the $1.40 mark as news of another significant order for the company's low-emission microturbines circulated the wires.

Capstone spent the better part of 2011 banking an increasing number of large orders, which added to an already growing backlog, and even warranted a mention by US President Barak Obama during a speech in Brazil for the 'green' technology offered by the company in the energy and industrial sectors.

The announcement on Tuesday revealed that an additional 31 C65 microturbines were ordered from a large oil & gas producer in the Eagle Ford shale play that already has an operating a fleet of 71 C65 units. For company officials - and investors alike - it's important to note the significance of consistent follow-on orders, as they are a solid testament to the product's strength and customer satisfaction.

Especially when the re-orders are rolling in asking for a significant amount of new units, such as this one.

On that note, Sam Henry, President of Horizon Power Systems - Capstone's distributor for the region, stated that,

This follow-on order indicates that Capstone microturbines are quickly becoming the chosen power system to meet growing needs of major oil & gas producers nationwide. The initial C65s proved to meet the customer's high-caliber power needs, which is why they decided to enhance their power supply with additional Capstone microturbines.

What's troubled the company up until this point, and also what leads to the highly volatile share price, is that the ultimate goal of profitability still has yet to be reached. That said, each quarter has returned a positive growth trend and Capstone will be a company to watch with an earnings announcement set for next week.

Expect continued volatility until profitability is achieved, but the continued growth trend may have the company set to see higher lows and potentially higher highs; the question will be whether or not those highs can be sustained.

Thus far, CPST has been a proven 'Buy' when around the one dollar mark, but it's also been proven that flipping some trading shares into the spikes is also a good idea.

Also keep an eye on Capstone's collaboration with General Electric (NYSE:GE), one of a few companies that could be considered a potential buyer of the company.

Disclosure: Long CPST.

Source: Capstone Moving Again On Heels Of Another Big Order