Capstone Turbine Corp (CPST)

FastMike (< 20) Submitted: 1/07/08 4:19 PM

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"...economic reality..."

Dear 'jj' :

Another more subtle 'use-it-now' feature is the ability for a Capstone generator take a large consumer 'off the grid' at peak times. If a Capstone generator(s) are powering the larger consumers of a power grid, the generator is removing that customer, essentially increasing the supply capacity. Conversely, if not all the Capstone generated power is being used, (if wired into a grid), it adds capacity.

Capstone generators, if used strategically in a power grid, jointly with natural gas and power companies, can add capacity without investing the hundreds of millions it would take to build a conventional power generating plant, and the infrastructure that goes along with it. In fact, that's what I thought the NYC building code specifications announcement for an on site power generator alluded to.

I get the impression that most investors think that Capstone turbine solutions are some kind of 'fringe' technology.

Far from it.

Your static Fool,
FM

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JesterJay (52.47) Submitted: 1/09/08 1:02 AM

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Mike,

I don't actively manage my positions in CAPS. Wish I had the time...I might fair a little better. I am not saying boohoo for me, just that I have only made adjustments one time (recently) after my initial posting back in the early spring of 2007.

Anyway...your point is certainly heard, and I agree...there are several applications for the turbines (and the $$$ invested over the years) for CPST...and you mentioned a critical one. I was trying to point out that Plasma Gasification is a "dark horse" use (among many uses) of the CPST turbine platform....

Anyway...I am long in calls on these guys...that's how much I believe in the story and the potential movement of the "value"of the firm which I see the best metric as a substantial multiple of R&D invested over the last 10 years or so which is much higher than current valuations...

Cheers....

Jay.

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DenverSpike (< 20) Submitted: 5/01/08 7:16 PM

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Everyone seems to neglect the fact that the Kw output from these turbines is quite small for the installation cost. They must be ganged together to make even 200Kw. A small 4 cyl LNG Diesel can do the same job on less fuel and lower installation cost. The flexible fuel aspect of the turbine is also a little BS. Sure, they can be used at land fills to operate off the methane, but the methane must be blended with LNG to run the turbines and no one ever mentions that. The fact is that competing technology is still more cost effective so Capstone must sell these at a loss.

Plasma Gassification is NOT an economic reality. The energy required for the arc is greater than the energy recovered. In any case, the gas turbines cannot be run off the resulting Syn Gas, the Syn Gas must be refined. A more efficient use is to burn the Syn Gas and power a steam turbine. Besides, we are expecting Mega Watts from a process like this. Imagine how many Capstone turbines would be required for even one mega watt.

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mattchenzo (< 20) Submitted: 6/14/08 2:19 AM

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i just listened to the conference call yesterday, and i cant say enough good things about these guys... earnings per share is still negative, but they are booking orders left and right, backlog increased like 450% and they will be in the black in december, from what the ceo said, they have new management and things are looking up and they are finally getting noticed by some of the big dogs, we had a beautiful short squeeze today for a ten cent gain in the last hour... it was a great day to be a capstoner!

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bobthebear (< 20) Submitted: 6/14/08 11:19 AM

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Hey Spike, it's time to read up on your engineering. Why do you think these turbine are place in land fills? To use more energy than they deliver. I know there are lots of dumb people out there, but none that dumb. If you don't like the stock, don't buy it, but please don't BS the rest of us.

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bobthebear (< 20) Submitted: 6/14/08 11:23 AM

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Matt,
Yes it was!

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donktastic (< 20) Submitted: 7/10/08 7:01 PM

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I couldn't have said it better, Bob. What's even more exciting is what I discovered in this article:

http://www.smallcapinvestor.com/articles/07082008-capstone_turbine_thinking_outside_the_micro_box

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