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. 

Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both on Twitter @TMFDuffy and @TylerCroweFool, respectively.

The Motley Fool recommends Chevron. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.