Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of microturbine maker Capstone Turbine (CPST) jumped 11% today after the company announced a new order.
So what: CleanWorld Partners has ordered a Capstone C800 microturbine and a Capstone Clean Cycle 125 kW waste heat-to electricity generator. The order is expected to be installed this summer and the waste heat will be used in an on-site digester to produce biogas.
Now what: I don't think one order really changes the game for Capstone, and I'd rather see more revenue growth and a profitable quarter before getting too excited. The company has lost $0.09 per share in the past year and analysts are only expecting to break even for fiscal 2014. Capstone has an interesting opportunity but those numbers don't show a good value, and this one order won't bring the company to profitability.
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