There Is No Stopping Plug Power

HyGear_Plug-Power
Plug Power has been partnering with HyGear since June 2016, © Plug Power

If the number of order bookings is anything to go by, then Plug Power is not only doing very well, but the company will be able to easily achieve or even exceed its ambitious goals: New orders worth USD 72 million in the first quarter increased backlog to an impressive USD 278 million. The new booking target figure this year is USD 275 million. The revenue target is USD 150 million – after USD 100 million last year. However, there was some confusion, as Plug changed the accounting principles to non-GAAP. Based on GAAP, first quarter revenues increased to USD 30.1 million (same quarter last year: USD 9.4 million), but non-GAAP puts it at USD 15.2 million because of the latter’s method to evaluate leasing contracts. By its own account, Plug is primarily focused on getting out of its sale-leaseback transactions (e.g., Walmart contracts), since these restrict too much capital that cannot be otherwise invested in company operations – something that should change during the course of this year.

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Risk warning

Investors must understand that buying and selling shares is done at their own risk. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they do not represent stakes in big companies and the volatility is significantly higher. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the assessments put forth in this article represent exclusively the author’s own opinion. This article focuses on mid-term and long-term perspectives and not short-term profit. The author may own shares in any of the companies mentioned in this article.

Author: Sven Jösting (written June 2016)

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