Comments on John Sartorius' articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/john-sartorius/articles http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-266193 266193 Fri, 26 Sep 2008 14:12:21 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-240489 240489 Wed, 27 Aug 2008 19:34:42 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-240482 240482 Wed, 27 Aug 2008 19:20:48 -0400 Total Revenue
2004, 2005, 2006, 2007 2008
12,607 16,968 24,103 21,018 31,305
Total Operating Expense
61,446 58,088 73,323 60,034 69,633
Operating Income
(48,839) (41,120) (49,220) (39,016) (38,328)

Revenue almost tripled in 5 years, and they moved operating loss from $48 million to $38 million annually. This company currently has $50 million in total equity, (half of which is equipment and machinery so the real number is probably more like $25 million) so it is set to lose its entire net worth over the next 12 months. Order backlog is up, which indicates that its overhead structure is not as deep as the previous post implies (if it has a deep overhead structure capable of increasing revenue with minimal incremental overhead increases it should be able to keep up with orders, revenue should be up, and backlog down). Since it is increasing order backlog, it is clear that the argument that it has massive production capability without increasing incremental overhead is questionable. Look, if you want to buy the stock, buy it. It was $0.98 a share a year ago, it made it to $4.40 June of 08 and at $2.5 August 08 there is a chance that news of a large order, supplemental offering, borrowing relationship, etc., will send it up towards $5. But there is also a very realistic possibility that it will revist the sub-$1 price it was sporting in August of 2007, and it may go down from there. My point is that this is a very risky investment and anyone looking at a long position on this stock should seriously look at the numbers. ]]> http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-234461 234461 Wed, 20 Aug 2008 01:22:28 -0400
That being said, it is the tier 1 player in this space. No one else can touch its technology. One of its biggest obstacles has been its high fixed costs as the author mentions. They are however ramping up production, they have recently added a partial second shift and have hinted at a further ramp up. Listening to the companies conference call last quarter will reveal that CPST has been in direct talks with its parts suppliers to ensure that they will be able to ramp up production in order to meet their increasing demands.

Capstone's key to profitability is to increase the volume of its sales. People who claim CPST loses $ for every turbine they sell and then go on to claim that if they sell more turbines they will lose more money are completely ignorant of how fixed costs work. Or are blowing smoke up your bum for their own agendas.

Look at it this way, CPST has in place a sales team, an R&D team, a shipping team, a management team, a manufacturing team, offices around the world, parts/supplies etc etc. These all account for costs that, regardless of whether CPST sells one turbine or 150, the company will have to pay for. If you increase production using the same listed resources above, you would only have to increase spending a small percentage to cover increased labor needs and increased parts/supplies. All other costs will remain the same. So lets say CPST had produced 150 turbines, they double their workforce and now are producing 300 turbines. They have doubled their revenue while the costs of the operation more or less remain the same, only increased by the labor and parts increase. So the outcome results in better margins per unit.

As this is pretty basic accounting, and everything that I mentioned is pretty much layed out in their latest CC. I would imagine that some posters are trying to shake some shares out of the retail investor community by using scare tactics. I have seen a large spike in the "bashing" chatter on several message boards, Yahoo's especially.
I am just saying do your own DD before listening to what someone on a message board tells you.

This is definately a speculative stock with risk, but its also a diamond in the rough with a foothold in a lot of market. If they can make it through this rough patch, it should really shine in the long run.

Best of luck to all.
]]> http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-232566 232566 Sun, 17 Aug 2008 16:30:11 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-232257 232257 Sun, 17 Aug 2008 08:29:26 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-229339 229339 Wed, 13 Aug 2008 10:04:19 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-199944 199944 Mon, 07 Jul 2008 12:54:53 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-198905 198905 Sat, 05 Jul 2008 13:40:27 -0400 All it takes is one good breakthrough in an alternative energy and Capstone is down for the count!]]> http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-198526 198526 Fri, 04 Jul 2008 10:58:34 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-197779 197779 Thu, 03 Jul 2008 08:32:47 -0400
If you want to install a unit (new or used) globalmicroturbine.com is a good online source.

]]> http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-195633 195633 Mon, 30 Jun 2008 01:05:05 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-195424 195424 Sun, 29 Jun 2008 17:15:18 -0400 installed at all fuel service stations that could use the fuel that
is sold . This will make everry service station in the many power outagges a reliable fuel fillup station.
]]> http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-194849 194849 Sat, 28 Jun 2008 15:32:22 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-194248 194248 Fri, 27 Jun 2008 11:51:02 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-194088 194088 Fri, 27 Jun 2008 10:06:38 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-193268 193268 Thu, 26 Jun 2008 10:33:25 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-193185 193185 Thu, 26 Jun 2008 09:31:13 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-193128 193128 Thu, 26 Jun 2008 08:58:54 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-193111 193111 Thu, 26 Jun 2008 08:38:34 -0400 http://seekingalpha.com/article/82750-the-long-case-for-capstone-turbine?source=feed#comment-193053 193053 Thu, 26 Jun 2008 06:46:42 -0400