Capstone Companies Inc (CAPC)

[mikeonmicrocaps]

Well, we are quite pleased to report that we continued to exceed our plan in the third quarter delivering a record of nearly $12 million in sales. In fact, we believe we have reached a significant inflection point for Capstone. We expect revenue to continue to grow and believe that our strong operating leverage will drive earnings growth as well.

I can tell you this much that based upon the guidance we have provided you where we are looking at a $30 million year end that you could see that our Q4 is very close to our last year’s sales activity and over and of course of the best selling years we have added I think three top years were right in the mix with 5% to 6%.

I believe that Q 4 revenue for 2015 was around $ 7.2 million.

Upon reflection, I have trouble squaring away the above quotes in the Q 3 conference call. If we have reached an inflection point and revenues will grow, how can 2016 Q 4 earnings come in at within 5-6% of $ 7.2 million? Remember that in 2015 Q 3 and Q 4 revenues were in the same range. How can going from close to $12 million to $ 8 million be considered an inflection point?

Does that imply at most a $8 million Q 4? If so, why make a big deal of Q 2 and Q 3 record incremental revenues?

I hope that Stewart is playing possum and that Q 4 comes in above $ 10 million.

BTW, is anyone else wondering why the Bath Vanity Lights are not yet in retail stores? For that matter, how many were actually sold on Amazon?.