Has Capstone Turbine Finally Turned the Corner?

Over the past couple weeks Capstone Turbine (NASDAQ: CPST  ) shares have launched into orbit on the news that the company had secured several orders for its microturbines. But 40% in a month? On the surface, it seems a bit silly that a company could gain that much on a couple news stories about sales. For a company like Capstone, which has struggled with sales, this kind of news is exactly what shareholders were looking for.

Capstone has some big advantages in the energy generation space, but it also has some very clear weaknesses. With sales numbers picking up, it could be a sign that the company is tackling one of those weaknesses. In this video, Fool.com contributor Tyler Crowe explains how these stories might be a promising sign for shareholders, but there are still some major issues that need to be addressed before Capstone makes its way to profitability. 

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Comments from our Foolish Readers

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  • Report this Comment On June 06, 2013, at 1:16 PM, almo52 wrote:

    Tyler, your right the diversification of sources of sales for Capstone is new and important, but the other issue that may be moving the market is the Company's potential to be profitable this quarter. A year ago, CPST added 56MW of new orders that need to ship in the soon to be reported quarter. If you give that a haricut and adj for revenue per MW; they have the potential with margins in the high teens (last guidance) to drive $9 to 10M in GM which might be enough to offset the SG&A and R&D run rate.

  • Report this Comment On June 06, 2013, at 3:37 PM, acobblersson wrote:

    The video with Tyler is a good informative analysis of CPST. It is also a very positive analysis of CPST.

    However, Aimee Duffy appears to be clueless. Her comment that a stock price (CPST) moving on the announcement of some new diversified sales "is really weak" is almost painful to the ears. Her comment above "On the surface, it seems a bit silly that a company could gain that much on a couple news stories about sales" is shall we say at the very least a bit Foolish..

    And then to use this piece as a shrill for GE and imply that the video concluded that not CPST, but rather GE is the better play based on diversification and that they will sell you a report to that affect is a pretty lame practice. .What kind of Fools are we?

  • Report this Comment On June 06, 2013, at 8:14 PM, KTOWNGOOD wrote:

    Cobbler's Son: couldn't of said it better myself

  • Report this Comment On June 08, 2013, at 9:19 PM, rebellemming wrote:

    What kind of fools? Hopefully, the kind that has found a management willing and able to return to the business basic of persuing profit not ego AND sales not subsidies nor travel /recognition opportunities AND results (positive corporate cash flow) not a flood of verbage intended to divert attention away from the basic fact that a " negative earnings " is a LOSS. The numbers say it.

    Thursday's call may indicate a management shift from innovation /tecnology to business . If they are tilling the soil in their own little acre, they will find diamonds and (eventually) I will get a dividend.

    Yah-I probably am a fool .

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