Monday, March 28, 2011

Why Does The Motley Fool Have It Out For Capstone? Because They Got It Wrong

Shares of Capstone Turbine were given the smack-down following a rise to over two bucks last week, but after receiving a Presidential mention the company is sure to be on more radar screens than it was a few months ago when shares were still trading for under a buck. 

With political events the way they are around the globe right now, the timing might be right for Capstone to start taking center stage next to the big boys of the green energy sector. 

So if things are looking so rosy for CPST right now, then why is the Motley Fool slamming the company and its stock? 

Simply put, because they've had it wrong the whole way up.

It's true that Capstone has yet to turn a profit, I've mentioned that over and over as one of the reasons as to why an investor in CPST should always expect spikes, dips and above-average volatility with this stock, but the orders and re-orders continue to roll in at a decent pace and the most recent quarterly report was the best ever.

Granted, a long and sustained run might not be in the near future for CPST, but the potential is definitely there.

Each and every article published by the Motley Fool about Capstone during the months-long runup has been negative, which makes the following statement a funny one from the website that is starting to lose as much credibility in VFC's eyes as TheStreet.com:

Capstone's dilemma is that customers seem to prefer larger turbines rather than the many small turbines it manufactures to generate the equivalent amount of energy. It looks to me like an uphill battle that longs will probably not win.

Um...It looks to me that longs of the stock have already won.  While The Fool has been going negative, CPST has run from under seventy cents to over two bucks in just a few months. 

That's an "uphill battle" that I sure do like.

Thanks for the opinion, Motley, but you look like a Fool on this one. 

The opinion is duly noted, however, from the website that has become the master of publishing two paragraph articles that mention about fifty stocks to attract those advertising clicks!

Keep an eye on Capstone, it's still a 'buy the dips' kind of play.
Disclosure:  Long CPST.

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