Tag - CPST

If you think the market for hybrid and electric vehicles will explode in the near future and you want to be on board for the ride, or you’re convinced that we’ll still need to rely on hydrocarbon fuels for the foreseeable future and want a stock that gets you into offshore drilling, look no further than Capstone Turbine Corp. (Nasdaq:CPST).

Founded in 1988, Capstone makes microturbines that help in the stationary power distribution generation needed for combined heat and power (CHP) applications, which can be used as primary or backup power sources and a number of Class A office buildings are ordering them.

Because the microturbines require little maintenance, two of Capstone’s biggest customers are Brazilian and Mexican national oil companies Petrobras and Pemex, who use the microturbines for CHP applications on their unmanned offshore drilling platforms.

Other key markets for Capstone’s microturbines include hybrid electric buses and multiple biogas applications. New markets beckoning for microturbine product, according to the company, are the Class A truck market, which is currently squeezed by high diesel prices and stringent emission standards, and the solar energy market, where the microturbines could be powered by solar energy during the day and other fuels at night.

The company’s air cushion technology, which eliminates the need for lubrication and reduces maintenance to near zero, has proven so successful that the turbines are getting to be less micro. Capstone will begin delivering a new 200-kilowatt system in September, adding to the current 30 and 65-kilowatt systems. The Chatsworth, Calif.-based company has already taken its first order for a 1,000-kilowatt system, which can be linked together to form systems as big as 10 megawatts.

For Sanjay Shrestha at Lazard Capital, this means the company’s order backlog is more significant at the moment than earnings. Skyrocketing raw material costs widened the loss for the fiscal fourth quarter ended March 31, to $0.07 . . .

Capstone Turbine Corp. (Nasdaq: CPST), a producer of low-emission microturbine systems, reported this morning that it signed a distributor agreement with Tarpon Energy Services Ltd. for the oil and gas sector in western Canada.

“The agreement is certainly a positive,” said Walter Nasdeo, head of research at Ardour Capital. “It’s another building block for revenue. Their turbines run on natural gas—intuitively this is a positive area for them to go into.”

Calgary, Alberta-based Tarpon is an energy services company with 25 field locations across western Canada. Its products and services range in such industries as oil and gas, oil sands and mining.

 “They’ve been trying to get traction in traditional areas to use those channels for distribution,” said Nasdeo.

Nasdeo says the company is in early stages of a turnaround and is in its third turnover of management.  “The stock has traditionally disappointed the Street. The new CEO, Jamison, is working to revitalize prior relationships and is doing so in a pragmatic way,” Nasdeo said. “They’ve had good results in building relationships—that’s where they are now—though revenue has got to snowball to make a difference.”

Capstone's CEO Darren Jamison said the agreement with Tarpon will enable Capstone to distribute products into western Canada’s oil and gas business.

“The [strategic moves] this time around are a more solid fix, as opposed to a quick fix historically seen,” said Nasdeo. He currently has a rating of “accumulate” on the stock with a price target of $1.50.

Shares of Capstone Turbine (CPST) gained $0.01, or 0.87%, to $1.16 in midday trading Monday. 

Shares of Capstone Turbine Corp. (Nasdaq: CPST) got a jolt this morning in pre-market trading after the manufacturer of microturbine energy systems reported that it received an order for $2.4 million from a global oil and gas company.

According to Capstone executives, the Capstone microturbines supplied to its newest customer will be specifically designed to survive in high humidity climates.

The Chatsworth, Calif.-based company said its client has many production platforms, refineries and thousands of miles of ducts and gas stations.

Shares of Capstone gained $0.06, or 5.45%, to $1.16 in pre-market trading.

The Russell 2000 small cap index looked up for the second day in a row as the major U.S. indices rallied on news that core producer prices stayed calm in May. The Russell 2000 moved up 4.58 points, or 0.55%, to finish at 837.12. The Dow Jones Industrial Average added 71.38 points, or 0.53%, to 13,553.73.

Core U.S. producers price increased 0.2% in May, the Labor Department said this morning. That’s in line with economists expectations.

The Russell 2000 index is leading the rally on Wall Street this afternoon, following news U.S. regional price pressures have not increased. At 2:51 ET the Russell 2000 had added 11.50 points, or 1.40%, to 833.22. The Dow Jones Industrial Average was up 121.58 points, or 0.91%, to 13,416.59.

Shares of Oculus Innovative Sciences, Inc. (Nasdaq: OCLS), which makes products to combat infection in chronic and acute wounds, are rising following news the Petaluma, Calif.-based company has entered into an exclusive licensing agreement with the Drug Enhancement Company of America (DECA). According to the terms of the agreement, DECA will market Oculus’ “pen-like” applicator, which is sprayed on minor injuries, to first responders and the military, Oculus said before the opening bell.

The following were the most actively traded companies in Wednesday's trading among those with market capitalizations under $500 million:

The following are the most actively traded companies in Wednesday's trading among those with market capitalizations under $500 million:

The following are the most actively traded companies at 1:33 ET among those with market capitalizations under $500 million: