Capstone Green Energy Corp (fka CGRNQ)

[Sphinx0]

3 Stocks to Get on Your Watchlist

http://www.fool.com/investing/general/2012/12/05/3-stocks-to-get-on-your-watchlist-10.aspx

Capstone Turbine has found itself and its microturbines competing in a world of giants for the better part of a decade now. Profitability still isn't there on a bottom-line basis, yet Capstone has used prudent fiscal management and innovation to drive results to the point that I'm ready to go out on a limb and predict a profitable year in 2013.

In Capstone's most recent quarter it noted gross margin of 9%, a full 300-basis-point improvement over the previous year, all while its DSO and inventory turn improved and its cash burn lessened. In every respect, Capstone is turning the corner to profitability. Capstone's record backlog also speaks to enterprise customers' desire to improve energy efficiency as standard electricity costs continue to rise. With bigger competitors out there, it could take time for Capstone's microturbines to catch on in a big way, or even for the company to boost production once it does become profitable, but with the stock at roughly $0.95 per share, I'm beginning to think that the price may just about be right for investors to begin taking a chance on this turbine producer.