Q: How do you rate Capstone after some negative company releases?
5i Research Answer:
The production guidance was not great, but we are comfortable until we see the full financials (March 02). EPS is still expected to rise more than 100% this year and this, plus the sector, keep us interested here. With uncertainty we would move it more to a HOLD than a BUY right, but production variances are of course common in the industry, and we do not see the long-term prospects as changed significantly to the negative.