Ardour Capital takes Capstone down a peg Last (and least), we come to alternative-energy small cap Capstone Turbine, a company I've panned on many occasions. Capstone reported earnings yesterday, and as usual, its fanboys are cheering a quarter of strong revenue growth -- and zero profit. The problem is that this quarter, the cheers are falling on deaf ears.
Why? This time it's not an issue of Capstone losing money or burning cash -- we're used to that. This time, it's sales that didn't measure up. Despite growing sales 19% year over year, Capstone fell about $2 million short of analyst expectations for $31 million growth. The miss was bad enough to scare backer Ardour Capital clean out of its buy recommendation and down to "accumulate" (which sort of still means buy, although many analysts will argue it really doesn't).
Should you be scared, too? As a matter of fact, while I still wouldn't touch the stock with the proverbial 10-foot pole, Capstone bulls do have a little something to hang their horns on this time around: Finally, Capstone has turned down the gas on its money-burning machine. While still negative, the company's $7.3 million in negative free cash flow for the first half compares favorably with the $12.7 million Capstone burned last year. This means Capstone's $45 million cash stash could last a bit longer and give the company a bit more time to figure out a way to profit from its business.
You, along with very many cpst skid-burn past victims , and the future ones, choose to listen to pumpers like dbandie, redeyesurfer and all their denominations carefully appended with as many 5-star ratings as there were denominators who as well declared Turnip.Blossom cpst basher numero uno, a title I gladly accepted all along, hardly worth a 1-star rating.
As behooves cpst idiot majority, the pumping worked just fine, and every idiot and his brother/sister/uncle/partner/son and daughter bought a stake to make their progeny inherit something of everlasting value. They got it all right.
... I am selling a large chunk of my shares today. I want out of this POS and be done with the POS management. You s23$#cum2#$bag sponsors can suck it as well. You newbies shouldn't waste your time on this POS. I did far too long and it is in a downward trend and the management SUX the big one. Let her drop in volume and die already. - jforuus