CPST1

Update on 10 Alt Energy Speculations for 2008

Capstone Turbine files shelf registration with SEC to issue up to $150 million in shares


CHATSWORTH, Calif. (AP) -- Capstone Turbine Corp. said Wednesday it filed a shelf registration statement with the U.S. Securities and Exchange Commission to sell up to $150 million of its securities from time to time.
The mixed shelf includes common stock, common stock warrants, preferred stock, debt securities, rights to purchase or a combination of securities.

Capstone Turbine Corp., based in Chatsworth, Calif., makes low-emission microturbine systems.

It said it does not plan specific financing, but will use the stock offering for "future financial flexibility."

Capstone reported 173.8 million shares outstanding as of Nov. 30.

Analysts See Value In CPST

The 9/18 equity offering should be for the addition of robotic welders ($15 ml) to the production line. At least that was noted during the 1st Qtr 09 conference call on 8/11/08 as something they would like to have although no such offering was alluded to.

At present they are nearing 50% production capacity meaning they have more space to utilize to reach the limit of how many units they can turn out. Only the “actual sales” that were delivered against, or are in current production schedule were reported as earnings in 1st Qtr 09. The back orders however, equal the sales of the current production cycles.

Vendors are being asked to deliver materials in shorter cycles and that is why the back log has occurred.

Coupled with the need for robotic welders and innovation, they have also added additional shifts to the production line. The units are sold through distributors’ world wide.

The utility of diversification as to how the micro-turbine co-generator (CHP) can be configured has more potential than it is currently most widely used for. www.capstoneturbine.co...

You would buy these units today to meet and solve the energy crisis of tomorrow. They are green, lean and quiet. All units utilize very few moving parts and are NYC building certified for indoor or outdoor installation. They have a significant presence in and around NYC.

www.officepowerllc.com...

Used units and technical background knowledge in addition to installation procurement is available through Microturbine online.

www.globalmicroturbine...

There is limited residential application and most notably is offered for commercial office building spaces. Still though, many units are stand alone used on offshore oil platforms, or remote oil and gas fields. Units co-generate heat, a/c, or electricity. They are efficient when installed in series or parallel to grid application. Some have griped that the electrical output could be greater. In this regard, one should expect progress to be made when using natural gas as its fuel source. Otherwise, they are multi-fuel friendly and easily maintained with excellent uptime.

Units are running in public transportation mass transit systems. Another area of further business elaborations.

The stock does not move with "good news." Though, Capstone should be recognized as an able and well managed company that could likely withstand higher degrees of mass production staffing, and be managed more like a mini-United Technologies than a manufacturing facility. They continue to face growing pains.

Accumulate/long CPST

The Long Case for Capstone Turbine

The article should mention that Capstone turbines are used in the transportation (mass transit) industry.

If you want to install a unit (new or used) globalmicroturbine.com is a good online source.