Capstone Orders & Analyst Drive Gains (CPST)

April 2, 2008 by Douglas A. McIntyre

Capstone Turbine Corp. (NASDAQ: CPST) is gapping up in pre-market activity.  The culprit is yet another order.  This was a $5 million order for 150 microturbines for hybrid electric buses from DesignLine International.  Shipments will be sent to DesignLine’s North Carolina plant through summer 2009.

Capstone Turbine is still an active pick in our "10 Stocks Under $10" weekly newsletter.  We have had this one as active on the list as one of our top picks for low-priced stocks.  With shares having hit $2.44 this morning, this represents a 100% gain since our pick.

Interestingly enough, Lazard Cap[ital Markets’ Sanjay Shrestha came out this morning and maintained a BUY rating on Capstone.  With his target being $2.50, we’d either be expecting a slight reduction in rates or a raised target from the analyst.  Our target was significantly higher in percentage terms and despite a 100% gain we have not removed this one from our list.  Since this stock has gone from an R&D stage with grant and study revenues into a production stage company, it has reached the point where many alternative energy analysts can actually begin following the company.  Shares used to trade exponentially higher than this in the earlier part of this decade.

Just last week we added another low priced alternative energy stock to that "10 Stocks Under $10" weekly newsletter and the target range for that would look for a 50% to 100%+ gain if the various target scenarios are reached. 

Jon C. Ogg
April 2, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at; he does not own securities in the companies he covers.