Capstone Turbine Corp. (CPST) has an interesting chart (See Yahoo! Finance). Unfortunately for Jim Cramer, he was bullish on his lightening round on the 12th of September (Cramer's 'Mad Money Lightning Round': Best Buy Still True to Its Name). Unfortunately for Capstone it has a history of losses. I have not followed the stock closely, but was curious if its momentum would continue. So far today, the stock is off $0.29 to $3.45 for a loss of 7.75% on the day.
I am a fan of Jim Cramer, so please do not take this one incorrect call as an indictment against him. I just was curious about CPST and had a look. I found its chart rather interesting. I think it serves as a good warning of what can happen when simply chasing momentum. You have know when to get out. And then you actually have to get out—and get out fast.
I have no positions in CPST.
I have seen that Jim Cramer forecast on CPST. He did state that the cost would plummit and to jump on it when it stops. That is what I plan on doing.
I think you'll be sorry Dan. Go to Yahoo! Finance and then search for Capstone (CPST). Look under Headlines until you find Herb Greenberg's column. Read it, and then reevaluate your decision.
If it were me, I would pass. But each of us has to make an independent decision. Good luck on yours.
Effective as of October 7, 2005 Capstone Turbine Corporation (the "Company" or "Capstone") entered into Subscription Agreements (the "Subscription Agreements") relating to a registered direct offering pursuant to which Capstone will sell up to 17,000,000 shares of the Company's common stock. Monarch Pointe Fund, Ltd., which is a private investment fund managed by M.A.G. Capital, LLC, and Asset Managers International Ltd, a wholly owned subsidiary of Pentagon Special Purpose Fund, Ltd. (the "Purchasers") committed up to $20,000,000 and $34,000,000, respectively, in purchase price for shares of Capstone common stock to be issued pursuant to the Subscription Agreements. The financing will support management's long-term plans to capitalize on the Company's unique patented alternative energy products by investing in its efforts to pursue opportunities in the alternative energy and secure power marketplace.
The stock is still heading south with no signs of stopping. But I do give management credit in getting more capital while the getting is good. But it also seems to indicate that CPST management believes that the stock is overvalued, or at least fairly valued. Otherwise, they would wait to do the Subscription Agreement at a higher price.