Orders Rolling In For Capstone Turbine Corporation (NASDAQ:CPST), Stock Still Downtrending

[[tagnumber 0]][[tagnumber 1]]Capstone Turbine Corporation (NASDAQ:CPST) is occupying a high–potential business segment. Known for manufacturing low–emission microturbine systems specialized for use in Combined Heat and Power (CHP) applications, the company seems well positioned to provide reliable, cost–effective solutions to a number of businesses not only domestically, but also worldwide. All in all, a great investment opportunity, one could assume. Looking at CPST‘s chart, however, you‘ll quickly realize that this is not the case, or at least has not been the case so far and there are plenty of reasons why.[[tagnumber 2]] [[tagnumber 0]]First, CPST failed to beat earnings expectations for four quarters in a row. Second, the precipitous decline in the oil and gas industry hit the company hard. Because most of its customers come from that industry and they have been plagued by shrinking cash flows, too. The latter makes it rather difficult to invest in Capstone‘s microturbines, even though it would reportedly help them to both cut energy costs and reduce CO2 emissions. As a result, CPST has been disintegrating for the last 18 months now. When we draw the line, we see that CPST shares have wiped a staggering 90% off their value during this period. A few minutes into today‘s session, Capstone‘s stock is traded around $0.23 per share, only slightly higher than the 52–week low of $0.20 reached last Thursday.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]In the light of Capstone‘s dismal chart run, it is no wonder why the stock has been subject to unusually high short interest for quite a while. Speaking of short interest, there are two implications worth noting. On the one hand, the number of short sold shares has been gradually shrinking. As of Sept. 15, 2015, it was 32 million as compared to 50 million less than a year ago. On the other hand, however, exiting a short position in CPST is becoming increasingly hard as evident from Capstone‘s days–to–cover ratio which is now three times higher than last October.[[tagnumber 2]] [[tagnumber 0]]Is it all doom and gloom for Capstone, though? Not necessarily, according to some Wall Street analysts. What is more, the most recent developments around the company suggest that its microturbine sales are on the rise again. Last Thursday, management announced there were 75 microturbines with a total power of 13MW waiting to be shipped starting in the new quarter. Originally planned for earlier commissioning, the orders reportedly got delayed due to unfavourable market conditions with regard to the oil and gas prices, as well as the strong U.S. dollar. In addition, Capstone has just announced orders for 20 more microturbines to be installed in numerous CHP projects in Germany within the next six months.[[tagnumber 2]] [[tagnumber 0]]As much as getting orders is a positive sign, Capstone‘s financial results in the forthcoming quarters will tell if the business will finally turn profitable or shareholders will have to wait for yet a little longer.[[tagnumber 2]]