We have a company whose one leg is based on "efficiency", yet they can't efficiently produce a product for a sufficient margin growth that the market is willing to beleive and pay up for.
DJ, balls in your court. A new finance team?
Maybe you step aside and let someone capable of leading us to that illusive goal. 8.5% margin is a JOKE ! Just enough for the employees to get paid but the investors never to have a taste aside for the $ pps game the sponsors play.
economies of scale will take care of that margin with lots more orders from Oil and NG Frackers - on FAST MONEY half time they mentioned CPST's spot on FM-5 in conversation about Natural Gas,, which makes perfect sense for remote areas with no source of electricty, where they are fracking oil or NG - can use the NG they sometimes burn off to generage with CPST micros,, RIGHT!!! CEO could have big news in this field tonight... Looks GREAT here, jmho
But Capstone's best bet remains oil and gas drilling in remote areas where power supply is tricky to obtain. In 2011, an unnamed oil and gas producer in the Eagle Ford shale play ordered 22 microturbines. Although it's unknown which company bought the equipment, Chesapeake Energy (NYSE: CHK ) and EOG Resources (NYSE: EOG ) have extensive assets in the area and certainly have the resources to make a big order to secure dependable power supplies.
What Capstone really needs to thrive is increased interest in locally generated grid-power alternatives. That may be a long time coming, but if it eventually arrives, Capstone is still in a prime position to profit from it.