Capstone Turbine has gone up over 100% in the past 3 months, but business is not doing well as they recently missed revenue consensus.
The expensive microturbine can’t compete with cheap electricity from solar and wind energy and cheaper per-watt engine generators.
Capstone is currently paying for road shows and investor presentations, not to sell microturbines, but to sell stock.
We believe Capstone will remain unprofitable for many years to come, keep burning cash, and keep selling stock to stay afloat.
Capstone’s chance for profitability is Russia, but oil and gas needs to go up considerably for more remote O&G installations.
Read full report on Seeking Alpha here.