Sunday, March 26, 2006

CPST

CPST

I've been given permission to post this under $4 stock, which
hopefully will be over 4 soon. This is a speculative stock.It moves on news and technicals, no earnings. Thursday AH this stock popped and I couldn't find out why till Friday when it was still making a move. Peter Worden evidently had
posted AH Thurs on the stock, and that's when I e-mailed Demi saying
take a look, "see any news" Couldn't find anything.......Anyway
here's a link to what got it moving, I believe.
some cpst news

This company has lot's in the fire right now that could get it
hopping, at anytime. The first thing that brought my attention to it
was sad to say "Cramer" But that has long since past. Walmart may
use these turbines in their "green" stores. The US gov't has
approved them as a supplier, known as GSA approval.CPST is the only
microturbine co. to be awared this approval, which is worth noting.
That doesn't mean the gov,t is buying from them at this time , just
that they have been approved. But the potential is there. Some of
their turbines have just recently been UL certified. The best thing
to do is look at their website and yahoo finance for the latest,
just too much to post here. This is an excerpt from RM's Michael
Soni, March 9,2006."I am currently focused on Capstone Turbine (CPST:Nasdaq -
commentary - research - Cramer's Take). It is the world's leading
producer of low-emission microturbine systems, which generate power
in a more efficient and environmentally-friendly manner.

Capstone recently unveiled, with FuelCell Energy (FCEL:Nasdaq -
commentary - research - Cramer's Take), a newly operational fuel
cell/microturbine hybrid energy system. The system boasted a 56%
efficiency rate for 800 continuous hours during initial testing, and
is slated to be installed at a hospital in Montana. These types of
products are ideal for commercial and industrial customers
interested in reducing energy costs.

Trading in Capstone has been very good, and volume has picked up
nicely. The stock went from around $1 in the summer of 2005 to
almost $6 in the fall of 2005. Volume and liquidity are very good,
with average volume around 2.6 million shares per day. The stock,
after correcting from $6, has been trending sideways from $3 to $4
since November 2005. Capstone is currently 78% undervalued based on
the Value Engine model and maintains an IBD rating of 23. This is a
rather low rating, but is a reflection of the past, and I believe
that earnings will catch up. The growth potential is strong and the
environment is ripe.

My expectation is that the stock will break out again very soon
based on a forming technical pattern called a pennant, which tends
to indicate higher prices. Keep an eye on the stock and look to take
a position on a break above $4. Capstone has exhibited explosive
growth, so expect it to move quickly when it does break out.
Maybe we could suggest a stop loss at $2.25.

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