Capstone Green Energy Corp (CGEH)

[Minding]

I've traded in and out of CPST for a few years. I've been out lately because they aren't increasing their backlog sufficiently in my view.

Here’s my thinking:
1. Price: 1.82 (as I type
2. Shares Outstanding: 310M
3. MarketCap (1 multiplied times 2): 564M
4. Backlog: 171M
5. MarketCap is 3.33x backlog (3 divided by 4)

I think that ratio should be 1.5 or 2x at the most. To get there, one of the following must happen:
* Price drops
* Shares Outstanding decreases
* Backlog increases

The last is the most preferable and it's happening but very slowly.

Over the last quarter I believe CPST’s backlog went from 160M to 171M (only a 6% increase), outstanding shares increased by a few million while the price rose very high in relation to these numbers.

The bottom line: I want to see their backlog double or better before I buy shares again.

Kind regards,
Minding