It is over sold and has great fundamentals whether hurricane play status makes it rally or not...
Here's a write-up...
Will this stock generate some heat? Strong revenue growth at microturbine maker Capstone Turbine is fueling investors' hopes that it will prove successful. Last quarter, I asked if investors had the patience to wait out the loss-producing period it was going through, and it doesn't seem they do. Shares are almost 30% lower than where they were in mid-June.
While Capstone saw revenues jump 51% from the year-ago period, to $24.3 million, they still fell short of expectations, which pegged sales at more than $25 million. It also turned a break-even quarter last year into a loss-making one this time around. Antidilutive warrant liabilities played havoc with its results, though, and it would have recorded a $0.04-per-share loss last year were it not for the warrants. Of course, this year's results would have been a lot worse had it not recorded the benefit, too.
Capstone's technology finds itself competing against other technologies -- such as fuel cells and solar- and wind-powered systems -- that have benefited from high government subsidies. FuelCell Energy (Nasdaq: FCEL ) and Ballard Power are just two of those seeking to gain an upper hand.
CAPS member Indiscr33t isn't so worried, believing the company's work in the shale gas areas of the Eagle Ford and Marcellus regions will put it ahead of the competition:
Say what you want, but Capstone technology is going to dominate shale gas decentralized energy production. With that in mind, their margins will continue to expand as their premium products, despite being more expensive than GE or CAT engines, are being bought nonetheless by [international energy giants]. Go to the Capstone Turbine CAPS page and let your fellow Fools know your views on whether it can generate enough investor interest to survive
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