Hell all- I'm just starting to familiarize myself with Capstone and the products they offer (I'm interested in power generation technology in the main, but also the "subset" of distributed generation). I've seen some mention on this board and in article written up that Capstone is sort of being used by the majors to build demand for the technology and once their patents run out, they will be kicked out by the major players able to then get into the action (namely GE and Caterpillar). Are these turbine units really that dependent on patents if there are already a number of other competitors in the space? Or is it a matter of Capstone having patents covering additional benefits and associated processes of their products (such as tri-gen units vs only combined heat and power)?
Just how dependent is Capstone on its patents for allowing it to remain a stand alone company in this space?
As a disclaimer, I'm not quite interested in the stock so much as the technology and the industry. I will say, for the sake of honesty, that I have 1,000 shares as a "very much speculative" holding--- though this is the very smallest position that I have vs. the rest (namely GE, BA, BWA, HON, etc.). I do not expect this stock to do very much, but who knows when it comes to stocks of this size or who are trying to come into profitability (much like a biotech in stage 2 trials for a new drug that has great promise, but it all hinges on the ability of the company to execute and deliver on it's research).
Thank you in advance for any responses. I'm open to both sides- lovers and haters of the stock/industry-- still trying to learn as much as possible about the industry and the role Capstone plays.
I recall the supplier holding the position of not disclosing the foil coating formulation! Oh almost forgot, single source for that part as well. Hope there is no fire or other calamity shutting down production!