Contact

Plug Power – not yet where it should be

By

April 15, 2020

Image titel:

Sources:

Plug Power – not yet where it should be

My virtual portfolio - Chart.
My virtual portfolio, © Wikifolio

Cashing in around the USD 5 mark, as I recommended, may have been a bit premature, seeing that the price rose as high as USD 6, but was ultimately a prudent move. At present, Plug Power’s stock again trades around USD 3. You may wonder what happened in the meantime. Simply put, expectations were too high. The net loss per share amounted to USD 0.06 in the fourth quarter of 2019. Revenue rose to USD 91.7 million, compared to USD 59.8 million generated in the prior-year quarter, which means there is some good news.

The company also announced new bookings would hit USD 300 million this year. But I still don’t know how Plug [Nasdaq: PLUG] intends to earn money. Maybe via service agreements? Ideally, it would turn a decent profit from selling hydrogen. Furthermore, I am cautious about investing in Plug because it has granted both Amazon and Walmart more than 100 million warrants. Their low exercise price of around USD 1 could mean a substantial increase in shares, diluting the stock.

Advertisements

The method Plug is using to record major customers and their orders is opaque to me. It is called vendor financing and could, conceivably but not necessarily, lead to restricted cash in excess of USD 210 million. I remain skeptical despite the stock’s current low. For the sake of trading, I added a small number of shares on wikifolio. Considering by how much the stock dropped, from USD 6 to below USD 3, it could see a short-lived rebound to USD 4 or USD 5 as soon as most of the market recovers from the current crisis.

Wikifolio: BZVision still shows more than 200 percent profit

Advertisements

My virtual portfolio BZVision on wikifolio.com has stood up well despite the turbulent times (crash!).

read more in H2-international May 2020

Risk warning
Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small- and mid-cap businesses, which means their stocks may experience high volatility. The information in this article is based on publicly available sources, and the views and opinions expressed herein are those of the author only. They are not to be taken as a suggestion of what stocks to buy or sell and come without any explicit or implicit guarantee or warranty. The author focuses on mid-term and long-term prospects, not short-term gains, and may own shares in the company or the companies being analyzed.

Author: Sven Jösting, March 19th, 2020

Kategorien: worldwide

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Mar 18 2024

Search for the ideal hydrogen storage

Interview with Thomas Korn, CEO of water stuff & sun Startup company water stuff & sun has...
Mar 15 2024

Is exponential growth slowing down?

Fuel Cell Industry Review 2022 Year 2022 saw fuel cell shipments creep up over 2021 numbers,...
Mar 11 2024

On the way to becoming a green hydrogen partner

Oman aims to score points with H2 infrastructure Wind, sun and loads of expertise – these...
Mar 07 2024

We can master a scale-up for green hydrogen

Interview with Dr. Kai Fischer, Director at RWTH Aachen The efficient scaling of green hydrogen...
Mar 07 2024

Frustration over continuing uncertainties

Interview with Jorgo Chatzimarkakis, CEO of Hydrogen Europe There is a lot that needs sorting out...
Mar 05 2024

“If ever there was momentum for hydrogen, it is now”

Interview with Dr. Jochen Köckler, chairman of Deutsche Messe “We’re bringing people together.”...
Feb 28 2024

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have...
Feb 26 2024

Just switch over?

Hydrogen in the existing natural gas network Whether hydrogen contributes to the clean heating...
Feb 26 2024

Pilot plant for coating bipolar plates

At Fraunhofer FEP (Fraunhofer-Institut für Organische Elektronik, Elektronenstrahl- und...
Feb 20 2024

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab The power plant site in Fenne, Völklingen, a...
Feb 20 2024

Chicken feathers as FC membrane material

Feathers from chickens or other poultry could in the future help make fuel cells more effective...
Feb 15 2024

SMEs demand more security

Guest article by André Steinau, CEO of GP Joule Hydrogen After all, the Ampel Coalition leading...
Feb 15 2024

Accelerated expansion of renewable energies

RED III is here – Elsewhere, the wait continues Progress is being made at EU level – albeit...
Feb 12 2024

Picea 2 relies on lithium instead of lead

HPS presents new product generation The company HPS Home Power Solutions has unveiled a new...
Feb 12 2024

H2 production by photocatalysis

The direct generation of hydrogen from sunlight has long been considered the most elegant solution...
Feb 05 2024

Regional instead of international

Hy-Fcell has it difficult asserting itself The aspiration of Landesmesse Stuttgart with Hy-Fcell...
Feb 01 2024

Hydrogeit Verlag turns 20 years old

Hydrogeit Verlag is proudly celebrating its 20th anniversary as a renowned specialist publisher in...
Jan 26 2024

Stracke other H2Now managing director

BMV Energy GmbH is entering the market as another player in hydrogen refueling stations. The...
Jan 26 2024

Starting points for a comprehensive hydrogen ramp-up

Industry congress GAT 2023 in Cologne To establish a functioning hydrogen economy, the entire...
Jan 26 2024

The industry highpoint in autumn

Hydrogen Technology Expo total success In autumn 2023 as well, the Hydrogen Technology Expo was...

2 Comments

  1. Clay Suddath

    Some astute observations, thanks.

    Meanwhile, I’m constantly amazed to observe how people can be so sensitive to the practical merit of fuel cells in general and PLUG in particular, and yet so blind to the fact that the shares of even the best company are sold in a market environment that will inevitably see some serious ups&downs. If the outlook is negative – as is certainly the case currently – it is highly improbable that the company will deliver stable value.

    Not to mention that not everyone at the table is honest, or haven’t readers noticed? Between short sellers, competitors and those busy cooking their books, FC co.’s will be extremely volatile for some time to come. While fundamentals are important, they are but the tip of the iceberg of investment variables to be considered.

    So by all means, invest in PLUG or FCs. Change the world for the better.

    But please, wait for the right moment.

    People who change the world for the better need to be careful not to lose their shirts.

    We need you.

    Reply
  2. Clay Suddath

    Alas, even the best of companies flounder in a falling market…

    Reply

Leave a Reply