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Another Analyst Likes Capstone

You are exatly correct, I AM trying to get people to not invest in CPST or any other company until they attain profitability so investors don't get burned as many have in the past with CPST. I've learned a lot in the time I've been an investor and I thought I would pass on a little wisdom so other people don't have to make the mistakes that I've made. I provided a simple rule that has worked for me. Note that I didn't say not to buy CPST I just said wait until they are making money; what's wrong with that? Am I a "basher" because I pointed out that they have yet to produce sustainable profits? That's a fact.

If you want to be a venture capitalist with your money that's fine but I'm not going down that road again with CPST or anyone else. I hope you are right, I want to see companies do well, export products and create jobs. I hope CPST makes it but I'm not rolling the dice with my money until they can prove they are going to make it.

By the way, if I were a short seller or "basher" of CPST for nefarious purposes do you really think that an anonymous post on this message board would make any difference to the stock price? You've got to be kidding me.

Another Analyst Likes Capstone

I'm not a short, in fact I've never shorted a stock in my life. I owned some CPST shares for a short time many years ago (way before probably all of you) because I thought it had potential and I've watched it since then. The company is a notorious cash burner; they have been eating investment capital for 20 years. Seriously, how many companies have you seen that have taken this long to make money with a concept and actually survived? Orders don't mean anything, profitability does. You can get all of the orders you want if you price your product below cost......what does the market for the products look like at a price that sustains a decent profit margin?

As far as anylysts are concerned; yes, they are frequently wrong. If they were always correct, or even mostly correct investing would be easy wouldn't it. I can remember a ton of tech/internet/dot com companies (including CPST years ago) that the analysts thought had great potential but crashed and burned badly. All I can say for CPST is that they have survived which is miraculous. It's very tough to determine how a new technology will catch on and, when it does, who will be the big winners. Sometimes the pioneer players are not the ones who survive because larger more powerful companies enter the market once the demand is proven.

Look, take my advice and I'll save you some money because I've been around the block a time or two. I'm not saying that CPST will never make it, maybe they will be a success someday (they do get an A for effort I'll give them that) but I made an investing rule because of CPST and other emerging tech companies like them and it's served me well: don't buy the stock until they have proven their ability to generate profits......period with NO exceptions.

Everybody wants to get in the "ground floor" with these companies before they make money. If the technology is legitimate and has a profitable market there will still be plenty of upside if you buy AFTER they start making money. Look at any successful tech startup (and CPST is still a startup after 20 years) and this rule applies; the people who invested after the profits came still did very, very well. In this way you can still make a lot of money if the business works but you will greatly reduce your potential for loss if they crater. Most speculative gambles in the market don't pay off. CPST has to prove that they can make money before they get my investment. I watch CPST and I have for years just in case the enterprise works but I'm not buying until I KNOW it's going to work. CPST is still in development and they are losing money and burning through cash; that's what I know for sure right now. Don't be a sucker, make them prove to you that the concept can make money before they get YOUR money.

Another Analyst Likes Capstone

The only problem with CPST is they can't make a profit, this has been going on for years and years. If there was a sizeable market for their products and the company had potential they would have been bought years ago by someone like GE, Siemens or United Technologies. With CPST it always looks like they are on the verge of becoming successful but it never happens; they just invest more in R&D which never results in profitability or return for the shareholders.

They look like a good bet now because of high energy prices but if we have a big recession and energy prices fall because of reduced demand CPST will, as usual, go nowhere. This one is just too speculative for me, too many false starts that result in nothing but disappointment. Investing money with this management team is like throwing it down a rathole.