Company to look at: Capstone MicroTurbine

Capstone MicroTurbine (CPST)

I recently caught this company on my radar due to it’s big gap up to the tune of 54% in one day in which I took part of about 22% of.  It’s part of my learning gap up/down strategies that seem to make so much money for so many traders (Iwant it I want it).

Anyhow, this was able to create turbine technology that can be retrofitted to normal cars to dramatically incrase their mileage as well as reducing emissions by 70-90%.  This latest price move was due to them retrofitting a Ford S-Max with one of their turnines giving it 80 miles per gallon for a 7 passenger car.  Their rumored next target is 100 miles per gallon.

I hadn’t heard much above turbine hybrid technolgy, mostly you hear about fuel cell and the like.  Perhaps this will emerge as a viable alternative.

In any case before this recession business CPST was posting very nice climbs up to the $4 range.  The books don’t look that good to me, but then again I’m not very experienced with valuating fundamentals.  I’m focussing more on the technical side of things.

Speaking of which…  Earnings are monday.  Analysts have it pegged at around -0.05.  I wouldn’t be surprised if it posted earnings below that price seen as they are pushing some heavy PR these past few days maybe to compensate..?  Looking at Fibonacci retracement levels off of this latest push we could see the price dip down to around the 1.07 area probably on Monday.

I feel that the markets need a nice healthy dip before I take any true long positions, but this company will be on my radar.


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