Capstone Companies Inc (CAPC)

[flptrnkng]

Under promise and over deliver

"Hopefully produce acceptable results in the next 6 months"?

That's a long time to wait for STP to pan out. Maybe he's setting the bar intentionally low. After the "Over promise and Under deliver" OBS tile sales, that might be a welcome change.

Still, I wouldn't count on any STP revenue this year. Losses in 3Q should increase ***my guess warning*** as some of those executives joined about half way through 2Q.

I would put revenues for 3Q for about the same as 2Q, with expenses (full quarter salaries) rising about $30~40K. That makes the loss for 3Q about $300K ***in case you missed it, entirely my speculative calculations warning***.

In the 4Q, even with the Christmas season, and revenue rising to $800~900K, I still show a loss for the quarter. Gross margins are in the mid 40s percent for Capstone, so gross profit of around $400K still won't cover quarterly opex. I guess at the loss for 4Q being $100K or a bit less.

For the year, it adds up to a loss of between $900~1000K ***again, my guess warning***.

Regards

Oh, from the He Got It Wrong Dept.: I think I predicted they'd increase the A/S by the time the earnings came out. Obviously, I blew that one.

Still think it's coming, though.