$1.31
-0.01 (-0.76%)
Capstone Turbine Corp (CPST)
CAPS Rating:
Capstone Turbine Corporation engages in developing, manufacturing, marketing, and servicing microturbine technology solutions.
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Just starting to make a dent in the market. Attended company presentation and went through tour during JMP conference at the Ritz Carlton who uses Capstone microturbines. Might be early, but this has significant upside potential. Take a look at the growth rates.
CPST may be a buy now. But, if so it is probably only for another long swing.1) Insiders buying.2) Near where it goes traditionally on lows.3) Backorders.4) The UTX PureComfort story and Walmart is compelling, as is the Ritz Carlton.5) If stores /hotels/resturants can lock in low gas prices and use the waste heat for refrigeration, they should dramatically help their energy costs.6) The oil platforms look like good stuff.7) And a real wild card is UTX, GE, or someone buys them fires the office staff, moves manufacturing to a cheaper location, and makes a business out of it. Most likely is UTX imo, since they have a shot at the Walmart and similar business.The bad news is these guys have too much overhead, they are in a beautiful building instead of the bowling alley Peter Lynch would recommend. They give out options at the drinking fountain. They need to get their costs both COGS and SG&A under control. The fact that COGS is greater than revenue suggests, there is and has been incompetent management.This is clearly a high risk and probably a high reward play. But many have now learned most investing is high risk!
Oops, forgot the turbine in the bus concept and the waste gas applications.