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Capstone Turbine (CPST) has become a perpetual member of the 'Weekly Stock Watch' list since rising to over the two dollar mark earlier this year and then dropping back down to a buck on heavy short interest as the broad market declined.

That's not to say, however, that positive developments have continued to materialize, even as the stock dipped to pre-runup levels.

This past Wednesday, for example, Capstone announced that it had secured another large order from Pumps and Service, a long-time distributor of the company's, for 30 C65 microturbines. The 30-unit order should be considered significant for Capstone, as it proves that Pumps and Service continues to deliver, with full accounting now at 150 units ordered in the past 12 months.

It's also a pretty good indication that Capstone's products continue to make headway in multiple markets, especially in the oil and gas fields. The units from this order, as an example, will be destined for various oil and gas customers, as were the orders before it.

Capstone is not just making headway into the oil and gas arena, however.

Earlier this year the company received an order for use in a railroad operation in Eastern Europe, tapped the hospital market and now announced last week a product line aimed at hybrid electric vehicles. Discussion and application of Capstone's microturbines for use in commercial vehicles is not new, but it's a good reminder that the potential use for the company's products are not limited to just their current scope.

With countries around the globe - including the United States - becoming more and more stringent with emission standards, Capstone could be onto something big as its technology advances to the standard of supporting low-emission standards in commercial vehicles.

US President Barak Obama alluded to just that when he gave Capstone a mention during a speech in Brazil earlier this year.

Although quickly rebounding from recent lows of just around a buck, there's still more potential short and long term upside for this one, in my opinion. The major detractor from CPST reaching its full potential is the fact that investors are growing weary of waiting for the company to reach profitability.

Quarterly results continue to demonstrate that Capstone can bank large orders, trim excess spending and move through backlog, but it's that light at the end of the tunnel - being profitability - that will put this company in the big leagues.

The technology, potential and the sales are there - and all moving forward - which makes CPST one to accumulate again, especially while it's trading in the low $1 range.

Additionally, Capstone should continued to be viewed not only as a competitor to, but also as a potential acquisition target of the big boys of the sector, such as General Electric (GE) and Caterillar (CAT).

Disclosure: Long CPST.

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