Sign Up NowThis Month's Tiny Gems - June 2009

Capstone Turbine Corp. (NASDAQ: CPST)
Eagle Rock Energy Partners, L.P. (NASDAQ: EROC)
Vanda Pharmaceuticals, Inc. (NASDAQ: VNDA)

 

 

 

Capstone Turbine Corp. (NASDAQ: CPST)

 

Capstone Turbine Corp. (NASDAQ: CPST) develops, manufactures, markets, and services microturbine technology solutions. As the world's leading producer of low-emission microturbine systems, the company was first to commercially market viable microturbine energy products. To date, Capstone Turbine has shipped more than 4,000 Capstone MicroTurbine® systems to customers worldwide which collectively have logged millions of documented runtime operating hours.

 

The Capstone MicroTurbine™ is a compact, turbine generator that delivers electricity onsite. The company’s MicroTurbine can be used for a wide array of applications ranging from remote locations to city centers, delivering clean, high quality power, with superior safety and emissions. Features include maintenance-free air bearings, the lowest emissions of any non-catalyzed fossil fuel combustion, and digital power conversion.

 

Advanced engineering and more than 100 patents put the Capstone MicroTurbines in a class of their own. Capstone’s MicroTurbines have just one moving part, no gearbox or other mechanicals, and use no lubricants or hazardous materials, requiring minimal maintenance while providing reliable performance. With the ability to operate on a variety of gaseous or liquid fuels, the Turbines provide a clean, green, reliable source of energy.

 

Founded in 1988, Capstone Turbine has earned industry recognition in the research, development, and field applications of advanced gas turbine-driven generator technology. The company is backed by a well experienced management team that has proven their ability to continue growth. With an unprecedented growing global concern for the environment, Capstone Turbine is well positioned to profit from the increased demand for lower energy costs and reduced emissions.

 

 

 

Eagle Rock Energy Partners, L.P. (NASDAQ: EROC)

 

Eagle Rock Energy Partners, L.P. (NYSE: EROC), together with its subsidiaries, gathers, compresses, treats, processes, transports, and sells natural gas. The company also acquires, develops and produces oil and natural gas working interests in Alabama and Texas; in addition to acquiring and managing fee minerals and royalty interests. Eagle Rock has natural gas gathering and processing assets in Texas Panhandle, east Texas/Louisiana, south Texas, west Texas, and the Gulf of Mexico.

 

The company aims to achieve stable, growing distributions to its investors by excelling in four mission critical activities — operations, acquisitions, organic growth projects and risk management. Eagle Rock emphasizes connecting new wells quickly, operating low-pressure gathering systems, executing contracts and agreements promptly, and providing reliable services. In all of its operations, the company strives to maintain a commitment to safety and compliance with environmental regulations.

 

In the second quarter, the company announced that it is temporarily reducing its quarterly distribution rate to enhance its liquidity position and reduce debts. The Board of Directors made this decision in view of the significant decline in commodity prices and drilling activity. Despite the distribution cut, the company continues to generate significant cash flow and believes technical pressure will reverse when meaningful distribution is reinstated.

 

With natural gas prices hitting a 6 ½ year low two months ago, it’s no surprise Eagle Rock’s stock has also hit new lows recently. However, the management team has demonstrated its ability to minimize expenditures and is working to better position the company to capitalize on future opportunities. With a solid asset mix and exposure to high quality producing basins, the company is poised to substantially benefit from an upswing in natural gas prices.

 

 

 

Vanda Pharmaceuticals, Inc. (NASDAQ: VNDA)

 

Vanda Pharmaceuticals, Inc. (NASDAQ: VNDA) is a biopharmaceutical company focused on developing new medicines and using novel approaches to improve the lives of patients. The company’s specific focus is on developing and commercializing clinical-stage products for central nervous system disorders. Vanda retains exclusive worldwide commercial rights to two products in clinical development for various central nervous system disorders.

 

The company’s lead product, iloperidone, which the Company intends to market under the tradename Fanapt, is being developed to treat adult patients with schizophrenia. Last month, Vanda announced that the U.S. Food and Drug Administration (FDA) granted marketing approval of Fanapt. Unlike some other antipsychotics, Fanapt has a low incidence of extrapyramidal symptoms and a placebo-like rate of akathisia. Vanda anticipates launching the product by the fourth quarter of this year.

 

The company’s other compound in development, Tasimelteon, is being developed to treat sleep and mood disorders. Vanda has already completed phase 2 and 3 studies that demonstrated significant improvement in sleep onset and sleep maintenance without next-day residual effects. Tasimelteon also caused a shift in the intrinsic circadian rhythm as measured by the body’s own production of melatonin. Vanda anticipates submitting a marketing application in the U.S. in mid-2011.

 

Since inception, the company has devoted its efforts to business planning, research and development, market research, recruiting management and technical staff, acquiring operating assets and raising capital. Currently, Vanda has sufficient working capital to operate throughout the rest of this year and is re-evaluating its longer-term operating plans due to the approval of Fanapt. With an experienced team and a stable of clinical stage compounds, the company is well positioned for rapid growth in the near future.