CAPSTONE STOCK PLAN CRITICIZED.Byline: Chris Sieroty Staff Writer CHATSWORTH - Shares of Capstone Turbine Capstone Turbine Corporation NASDAQ: CPST, incorporated in 1988, is a California based gas turbine manufacturer that specializes in microturbine power and heat cogeneration systems. Capstone has sold and shipped more than 3,000 of these one-moving-part systems worldwide. Corp. fell 25 percent Wednesday, a day after the company released quarterly earnings and filed for a follow-on offering Follow-On Offering An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. of 7 million shares, of which existing shareholders plan to sell 6 million shares. Capstone's loss of 11 cents a share in the third quarter was in line with analyst expectations. The Chatsworth-based company earned $6.2 million for the third quarter of 2000, compared with $759,000 for the same period last year. On Tuesday, Capstone filed with the Securities and Exchange Commission to sell 7 million shares worth $302.75 million at Wednesday's close. ``I love the company and everything they're doing, but I don't agree with the plan to sell that many insider shares into this market,'' said Randall Roth, an analyst with Renaissance Capital Renaissance Capital is a major investment bank concentrating on Russia and the Commonwealth of Independent States (CIS). Renaissance Capital is wholly owned by management and employees. Major lines of business are: sales and trading, investment banking and asset management. . Roth urged company officials to amend their plans and wait for the market and the company's stock price to stabilize stabilize See peg. . ``I don't think it's management that wants to sell the shares, I think it's some of their investors,'' he said. ``I don't think it's a smart move.'' Capstone, in its quiet period before the secondary offering, would not comment this week. The company, which develops small generators and turbines for hybrid electric vehicles A hybrid electric vehicle (HEV) is a vehicle which combines a conventional propulsion system with an on-board rechargeable energy storage system (RESS) to achieve better fuel economy than a conventional vehicle without being hampered by range from a charging unit like an , didn't identify the selling shareholders in its filing. The number of shares outstanding will rise by 1.3 percent to 75.9 million after the offering, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the filing. Shares of Capstone Turbine lost $14.875, or 25.59 percent, to close Wednesday at $43.25 on heavy volume of 952,500 shares traded on the Nasdaq exchange. |
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