UPDATE:Capstone Turbine Shares Up This Week On Engineering News
13 June 2009 - 4:10AM
Dow Jones News
Shares of green microturbine maker Capstone Turbine Corp. (CPST)
nearly doubled this week on news that U.K. auto engineers have fit
its turbines into a modified electric-and-biodiesel Ford S-Max
sedan with gas mileage of 80 miles per gallon.
The "clean" microturbine engine component maker, based in
Chatsworth, Calif., surged to $1.32 on Thursday after closing the
previous day at 73 cents a share. In recent trading Friday, its
shares were off about 10% from Thursday's closing. Over the last 52
weeks, Capstone shares have traded as high as $4.42 and as low as
39 cents.
The Dow Jones Sustainability Index, a leading indicator of
environmentally friendly shares, is up by about a third since its
early March lows. Capstone isn't part of the index.
Langford Performance Engineering Ltd., in Wellingborough,
England, fit the liquid-fueled microturbine into the modified Ford
it calls the "Whisper Eco-Logic."
Using a turbine about doubles the gas mileage of its combined
battery-powered and diesel/biodiesel engine, said Dick Langford,
managing director of the auto modifier.
"We wanted to prove that you could make a practical vehicle that
is also environmentally friendly," he said. "This can be used as an
everyday car."
"The design characteristics of Capstone's turbine permits ultra
low emissions, high fuel economy, multi-fuel capability, no
coolants or lubricating oil, and little to no maintenance in an
automotive application," Jim Crouse, Capstone executive vice
president, said in a prepared release.
Capstone is due to announce its fiscal fourth-quarter and 2009
earnings on June 15.
New York-based Ardour Capital Investments LLC expects a loss of
6 cents a share on quarterly sales of $11.9 million. It rates
Capstone a hold. "We expect them to continue approaching gross
margin break-even in the fourth quarter," Ardour senior
equity-research associate Meghan Moreland said.
On average, analysts polled by Thomson Reuters expect the
company to post a loss of 6 cents on revenue of $13.4 million.
-By Brendan Conway, Dow Jones Newswires; 201-938-5394