Capstone Companies Inc (CAPC)

[dizzydon]

there a lot of room for optimism,imo..

compare this year and last years first half rev's

$1,003,501 versus $5,269,748

.. that's a difference of $4,266,247 and yet it looks like they'll end the year at 12.5 to 13m..down just $500,000 to $1,000,000 from last year,but,according to Stewart in yesterday's pr,a small profit versus a $110,000 loss a year ago,thanks to much better gross profit margin's

if they have a $7,000,000 backlog at the end of Q3 that could mean $3m is already booked for Q1 next year .. (if second half is 85% of last years full year $13,624,518 that equals $11,580,840..subtract Q3's projected $7.7m from that $11,580,840 and you're left with $3,880,840 for Q4 out of the $7m backlog,so actually it looks like they already have slightly more then $3m backlog for shipment in Q1 2016..hopefully that could grow quite a bit,but with them and their already being like a half year to a full year out on things,you never know.)

.. i hope "at end of q3" translate's to "at start of q4"..but then why didn't they phrase it that way??

the first half was disaster because of the change over to Hoover but it looks like they'll make up $4.3m of it here in the second half,with a very bullish look ahead moving into 2016.

one thing that does concern me is operating costs,..if $7.7m at slightly better then 25% gross margin .. say 25.5%..yields a gross profit of $1,963,500,it looks like operating cost's will be slightly more then $1m ..last year,on very similar revenue,total operating cost's were $828,...hopefully there were some additional marketing cost's this q3 for such a large rollout of product's that won't be there in the future.

add to that any joint venture with LightEngine as was mentioned and the partnership with Cree (whatever that means exactly),and i think 2016 could be the 'banner year' Gerald McClintion refered to it as