Cramer got it wrong on Capstone (CPST)

[fogqrfsi54]

Check out news, commentary, and analysis at http://www.insidemadmoney.com - an inside look at Cramer's Mad Money.

Cramerâ?‚??„?s recent recommendation on Capstone Turbine (CPST) because of a purported deal with Wal-Mart (WMT) has produced a flurry of activity, sending the stock up over 30% at its high after his recommendation. His recommendation, however, has produced a backlash among some in the financial community.

Herb Greenbergâ?‚??„?s Reality Check column entitled â?‚??“Countering Cramer on Capstoneâ?‚?? has these key points (subscription required):

* A Wal-Mart spokesman said Wal-Mart did not purchase anything directly from Capstone
* Wal-Mart bought a power generation system from UTC Power, with the system containing 6 Capstone microturbines.
* No decision has been made to expand this project to other Wal-Mart stores

[FosterLang]

The Motley Fool also published a bearish article, â?‚??“Dog of the Dayâ?‚?? on Capstone Turbine and another one here, â?‚??“Some Missing Info About Capstone.â?‚??

There is strong evidence for taking a bearish position on Capstone Turbine - Cramer may, in this case, given advice based on unsupported data.

Check out news, commentary, and analysis at http://www.insidemadmoney.com - an inside look at Cramer's Mad Money.

[Francesen]

Stock is hard to borrow, which might mean shorts are already loaded up waiting for the bottom to fall out. Bottom line with any of these alternative energy stocks: the little guys don't stand a chance; if a product is worth doing in commercial quantities, a company like GE (the world wide leader in wind power) could start banging out units by the kazillions. There's a reason they don't do it now...not profitable! Stay away from CPST; it is a sick stock.

[faOi]

Word aj, nuff said...

CPST is garbage...

Peace.