Talked about the Palm Oil announcement then the sell:
he turbine generator manufacturer said the two orders, which total three megawatts (MW), are expected to be the first phase of a total 15 megawatts installed over the next three years:
The microturbines will use palm oil milling effluent (POME) biogas, a byproduct of the palm oil extraction process, and will provide all power to the plant's facilities. Capstone estimates POME production at the plants will total more than 50 million cubic meters each year, equivalent to power generation capacity of more than 800 gigawatts.
"Capstone remains committed to expanding our global presence in the food processing industry," said Capstone CEO Darren Jamison in a statement. "We are particularly excited about these two projects in Malaysia and plan to showcase these successful installations as blueprints for future projects."
The Street 4-2-14
They are guiding flat revenue for the current quarter, could be the weather. I have another problem though, lot backlog, they are missing 144 lots from their preannouncement, where did they go? Had planned on going long after this last report assuming it would be bad due to weather, the next one will be but guidance may be good. But these guys need to execute, they are paying themselves 20% on money they lent the company which can not be paid down short of 100%. That's 20% on 14 million? They will burn through a large percentage of the remaining shareholder equity with the next report. Waiting to go long.
If I have it right 4 million of the non-controlling was added at the end of the quarter so the payment for that will be at least 3 times higher than what was reported for the last quarter with a similar situation with the 9.2 million bank loan. Another question, in February they said they had 637 lots available at year end now they said there were 493, that's a difference of 144 lots, where did they go or am I missing something? That's a difference of 144 lots!
3-28-14 - "Comstock’s pipeline of controlled land inventory expanded to 493 lots at year-end 2013 from 354 lots at year-end 2012."
"Comstock’s pipeline of controlled land inventory expanded to approximately 637 lots at year-end 2013 from 354 lots at year-end 2012."
Think they can actually deliver by Monday which is the end of the quarter, you are more optimistic than I am. I'll bet the majority of the backlog is carried over to the second quarter and doesn't show up in accounts receivable. It's hard to make up for lost time, means you have to push someone else back. And no they can't control the weather, still means that potential earnings for the quarter will not show up when they report in May.
Another point they will still have to account for the interest to the non-control investors whether they got the houses up or not, contributing to another loss.
Thought I would be buying in after this last report, looks like I am going to have to wait till the next one, to much potential for an ugly quarter.
As for the "4Q homebuilding revenue of $21.2 million compared to $2.1 million in 4Q last year ", that's old news already baked into the stock price when they preannounced. They are currently projecting flat sales yoy for the first quarter.
"What gives?" I think the shareholders still have a high level of optimism, CHCI already put out the good news prior to reporting, the stock should have gone down based on the guidance. They said that the bad weather had an impact on deliveries for the Jan-Mar quarter, new orders YTD kept pace with 2013, so no sales growth for the quarter yoy. There will be an impact on revenue.
"Although unusually harsh winter conditions will have an impact on deliveries and revenue in the first quarter of this year, new orders YTD have kept pace with 2013 and currently our backlog is above year-ago levels, giving us confidence that we will achieve our objective of continuing the pattern of growth that began with 2013.”"
Things are not in balance, Putin will not stop with Crimea, his driving force is greed. He and his buddies have raped Russia for their own personal gain and that will continue which is why Russia is building up troops on the Ukrainian border. How do they make their personal wealth, selling natural resources they acquired through their political strength. Selling Natural Gas to the European countries has been a big source of this wealth. They are in the process of establishing pipelines around Ukraine for political reasons the latest of these lines is the South Stream which is to go under the Black Sea for 900 kilometers at depths of up to 2 kilometers. Take a look at a map of Ukraine if Russia acquires the eastern and southern regions of Ukraine they will drastically reduce even eliminate the pipeline they have to build under the Black Sea saving themselves tons of money and hassles of having to deal with under water lines. The way I see it Putin plans on acquiring the rest of Ukraine necessary for the rerouting of this pipeline, what's Europe going to do they need Russia's gas. He has his troops lined up under the same premise as before Crimea, military exercises, BS What has this to do with Capstone, potential for increased Russian sanctions. I am long which is why I am watching this conflict closely.
Here is more of the article, found it on "The Flint Report".
"Power Brownouts Feared in Eastern Montana, Bakken Region
Aaron Flint posted on March 11, 2014 14:53 :: 256 Views
Electric power brownouts are feared in Eastern Montana and the broader Bakken oil region. This, according to Montana Public Service Commissioner Travis Kavulla (R-Great Falls) who discussed the issue in an in-depth interview with Emilie Boyles for Marks Group Broadcasting based out of Glendive.
Kavulla says oil and gas development has powered 6% annual growth when it comes to the electric demand in the Bakken region. While power providers like the North Dakota-based Basin Electric Power Cooperative have added electric generation capability, Boyles asks- "at what point will it be not enough?"
Kavulla: Very soon, and even next year. It's not necessarily even the lack of generation from Basin, because that they've been able to build fairly easily-it's been the lack of transmission lines. So for instance, the US Forest Service at the moment is holding a Basin line from being built across the grasslands in North Dakota. If that line is not in place by 2015 then you may see what we call involuntary loadshedding, brownouts."
Boyles: Thats a term we hear from California.
Kavulla: That's right, you're not used to hearing that now, but compare that 6% annual growth to the rest of the country's electric growth which is more like a half of a percent or one percent annually. It's just very hard for utilities to keep up building infrastructure, especially infrastructure that needs easements over federal lands in that kind of environment. And the feds, for what it's worth, have just not I think realized the gravity of the situation. They certainly will if there starts to be brownouts, especially during winter months. "
Here is a summary of what the Senate is to vote on, I see nothing mentioned that should impact Cap;
"The U.S. Senate Foreign Relations Committee will vote on the bill later on Wednesday. Committee members said they thought it would be passed by the panel, then sent on to the full Senate for a vote.
Among other things, the legislation would impose sanctions on Russians and Ukrainians judged to be involved in violence or human rights violations during anti-government protests in Ukraine that began late last year, as well as against anyone involved in undermining Ukraine's security and stability.
The sanctions would include freezing assets held in the United States, travel bans and denying visas, according to a copy of the bill obtained by Reuters.
The legislation also directs U.S. authorities to help Ukraine's new government investigate acts of corruption and return assets to Kiev. And it includes backing for a $1 billion loan guarantee, in addition to millions of dollars in aid."
I would rather know that the Janitor who is reading the trash just dumped his entire net worth into the stock verses some exec putting up a fraction of his.
The author wants people to wait till revenues are up and Capstone shows a profit, lol. The big money will have been made by that point. No risk, no profit.
"If you don’t factor in ‘bad bank’ and legacy costs of £4.8bn, then the group actually made an operating profit of £2.5bn. The internal bad bank was set up to house some £38bn of troublesome loans, a figure that has been reduced by around a quarter to £29bn. Peering beyond what obviously needs to be redressed, there is a good core banking division there, but the £2.5bn in operating profit is still 15% down on 2012."
55552, Your post seems to me to assume a static level of demand. I'm betting on increasing demand in which case your 30% will not be a problem.
The execs have control of the corporations in this country, we just get to bet on whether they are successful at making themselves rich at the stockholders expense.