david mackey

Started a position in Capstone Energy $CEPL They make recuperated air-bearing microturbines from 30 kW to 1 MW, packaged into multi-MW blocks. The company went through Chapter 11 in late 2023, closed a $112.5M Monarch financing in March 2026 that redeemed Goldman’s preferred, renamed to Capstone Energy+ in April, and uplisted to Nasdaq as $CEPL this week The new brand reflects Capstone’s evolution from a microturbine manufacturer into a behind-the-meter energy solutions platform focused on resilient, on-site power. Dont think hyperscaler DCs but small modular 1-20MW size Factory only running at 12% utilisation The factory headroom is enormous. The Van Nuys plant can build ~2,000 units per year. Mgmt claims over 1 GW/yr of theoretical output — yet ran at only ~12% utilization on a single shift in 26.That means roughly 8x headroom before they even add a second shift, and shifts multiply output without new capex. On the June Q4 call, management said they are already doing assembly-line planning for a “100 MW supplier scenario” FY26 revenue was $102m up 24% yoy GP increased 45% to $33.9m Net Income of $2.8m Fact they’re already profitable at 12% utilisation is astonishing. Huge amount of leverage to unlock here. Asymmetric trade here. Your buying a profitable business trading at ~3x revenue off their existing business You buying a free option on any kind of data center deal. Market isn’t pricing in any DC deal yet. They claim $3.5m / MW for a DC deal. Even discounting that to $2m MW, 100mws of deals is $200m in revenue. Mgmt have made some comments around potential DC deals and doing dry runs in the factory in preparation for a sizeable order With the financing and uplisting done they’re in a nice spot to be able to try and capitalise a DC deal. You’re getting a profitable established business with over 10,000 units deployed worldwide. More to come