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Technology Stocks : Capstone Turbine Corporation (CPST) -- Ignore unavailable to you. Want to Upgrade?

To: Sword who wrote (220)	8/17/2001 12:23:49 AM
From: Sword	Read Replies (4) \| Respond to of 455

And as long as I'm on the subject....consider for a moment what it will take to raise their gross margins. Sure the recuperator cores are part of the equation. But that is just a small contributor compared to moving away from the retail sale area. Right now, they have to send an engineer to the cogeneration customer sites to conduct an energy survey and make measurements. That adds engineering labor to small orders. But when Cummins and Caterpillar place large orders and slap their nameplate on the turbines, CPST is providing OEM supplies to the retailer. Under those conditions, CPST just manufactures the turbines, provides a spec sheet complete with interface information and ships them....in quantity....to Cummins where they themselves do the site surveys in places like Saudi Arabia (its currently in contract negotiation). Then their margin really goes up. Shipping in larger quantities to OEM customers is where the gold will be found. Then a $100 million revenue stream can start booking 35% to 45% gross margins and the shear size of the stream will more than cover SG&A to give them a tidy profit. For a pure play start up company with product on the market and with about 7 major product application areas, all growing, no debt and $200 million in cash in the bank, I see the company at these levels as a very, very nice investment. Just my opinion. -Sword