For the better part of the year so far, as Capstone Turbine more than doubled in value, The Motley Fool has been playing the short side of the coverage, emphasizing the modest profit margins of the company's microturbines. That negative coverage may be changing course as a luke-warm review of Capstone by The Fool early last week was followed up with a relatively positive note at mid-week.
It's worth keeping an eye on CPST this week as earnings will be released on Tuesday, although there still remains a large short interest in Capstone shares.
While the popularity of Capstone's microturbines have been growing in popularity at an impressive pace, the share price has failed to break through and then hold the two dollar level.
Continued sales increases and an increasing backlog of orders have been recognized during the early portion of 2011, meaning investors will be looking for more of the same come the earnings release.
Of course, if profit margins are also seen to have increased, then maybe we can expect The Fool to continue the shift towards positive coverage of the company.
Keep an eye out for Tuesday's earnings.
Disclosure: Long CPST.
