Capstone Turbine Corporation (Nasdaq: CPST) - Skyrocketing!

Capstone Turbine Corporation (Nasdaq: CPST) is engaged in the development, manufacturing, marketing and servicing of microturbines. Their products and accessories can be used in stand-alone applications or in conjunction with electric grids. Such applications include: cogeneration (combined heat and power - CHP) and (combined cooling, heat and power-CCHP); resource recovery and secure power. Capstone's microturbines can also be used as generators in hybrid electrical vehicles. Their products compete with such power generation applications as solar and wind systems, reciprocating engines and fuel cells.

We believe that the company is well positioned for long term growth. Capstone's revenues have steadily increased over the last two quarters with an average of 28% growth per quarter. The company continues to incur net losses; however such losses are decreasing in relation to revenue growth and we believe that, with its solid balance sheet, Capstone is in a position to withstand such losses for at least another 12 months. According to their latest SEC filing the company had nearly $42.7 million in cash and no significant long-term debt.

Capstone's shares were up by almost 11% yesterday, as they contine to soar. The company's shares have been on a strong uptrend since February, 2008, more than doubling in that time-frame! Capstone's strong growth has been recently noticed by a few financial analysts as they initiated buy signals, which has helped to fuel the uptrend.

According to several announcements made in April, Capstone received two sizable orders and has entered into a new distributorship agreement.

With its solid balance sheet and new orders Capstone appears to be in the early stage of sustained growth and could prove to be a good bet for growth-oriented investors.