Capstone Green Energy Corp (fka CGRNQ)

[CaptWhizbang]

Update: Capstone Turbine Snags Major New Order, Buy Recommendation Reiterated
Dec. 15, 2014 4:07 PM ET
by Crunching numbers

Disclosure: The author is long CPST. (More...)

Summary
•Capstone records one of the largest orders in company history.
•Large order should help offset increased risk elsewhere.
•Reinforces view that Capstone is a long-term speculative buy.

Capstone Turbine (NASDAQ:CPST) announced a new order that CEO Darren Jamison termed "one of the biggest in Capstone history." How large was it? Six C800s and sixteen C30s. While we don't know the precise dollar amount, based on the average net revenue that these products generated recently, the order could be somewhere in the $5-$6 million range. Looking at the recent 10-Ks and 10-Qs, we find that the C30s have averaged around $50K, while a C800 is approximately $0.8 million.

As previously covered, Capstone is in an unenviable position where a weak dollar is driving up the cost of its non-US sales, its largest non-US market - Russia - is a target of sanctions, and oil prices continue to deteriorate. The falling oil prices should affect not only the Russian economy, but also Capstone's largest vertical market. This particular order is for the Los Ramones pipeline project in Eastern Mexico, and came from Industrias Energetícas, Capstone's distributor in Mexico.

As with many of Capstone's orders, it was not revealed when the anticipated delivery will be required and the sale realized. However, the fact that this is a non-US order, and that it is in its largest vertical market despite the strong dollar and the continued decline in oil prices, reinforces the previous recommendation for this stock as a good long-term buy for the speculative portion of one's portfolio.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

http://seekingalpha.com/article/2757135-update-capstone-turbine-snags-major-new-order-buy-recommendation-reiterated?uide=707430&uprof=44



Additional disclosure: In addition to a long-term core position, I will regularly buy and sell blocks of Capstone.