- Stock has retreated by approximately 65% from multi-year highs set at the beginning of the year.
- Recent quarterly results have been disappointing.
- Company is aggressively raising additional capital but neither a major acquisition nor a near-term repayment of the expensive Goldman Sachs notes look like viable options at this point.
- Management is doing everything to position the company right in the sweet spot of ESG investing including a name change and expanding into hydrogen applications but Capstone will remain dependent on the legacy natural-gas-powered microturbine business for years to come.
- Investors should remain on the sidelines until the business outlook improves, particularly given the very real threat of further near-term equity raises.
For further details see:
Capstone Green Energy: Latest Capital Raise Catches Investors Flat-Footed