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Plug Power Inc (NASDAQ:PLUG): No Secret Sauce In Fuel Cells

Boston, MA 03/19/2014 (wallstreetpr) – Plug Power Inc (NASDAQ:PLUG) is in the ‘green energy’ business of making fuel cells. However, it’s not doing anything revolutionary in terms of inventing new technology or improving existing technology. To think of Plug as another Tesla Motors Inc (NASDAQ:TSLA) would be a misunderstanding of battery and fuel cell technology. And that’s apparently what’s happened with the Plug stock as its price rose during the dot com boom and then eventually lost 99.9% of its value.

The recent huge trading volume is mostly speculation by day traders which has nothing to do with the company’s fundamentals or the dynamics of the alternative energy sector.

Just Forklifts

It’s not as if Plug engineers have made the dream of room temperature controlled fusion a reality. The company merely supplies fuel cells that power — among other things — forklifts. The company has recently received orders to supply its hydrogen fuel cells to Wal-Mart Stores, Inc. (NYSE:WMT) worth several million dollars. The company also reported new order bookings of more than $32 million from The Kroger Co. (NYSE:KR), BMW, and Mercedes. But its recent third-quarter results were less than awe-inspiring. The company reported FY2013 net loss of $62.7 million even though the CEO, Andy Marsh confidently predicted that “order for this year will total more than $150 million — almost four times our total for 2013.” It’s worth remembering that Plug has racked up more than $500 million in net losses over the last decade. The net loss for 4Q2013 was $28.9 million including a $20.9 million non-cash charge related to the change in fair value of common stock warrants. They’re expecting more of these charges in the 1Q2014 results.

Casino Stock

But the bottom-line is that “Plug Power has no profits, no unique technology, no scalability, no demand, no brand equity, no media hype and no analyst support,” according to Andrew Left of Citron Research. According to Left, investors cannot trust the company’s management since they have been providing quite unrealistic forward guidance. The management has been “actively deceiving the marketplace,” Mr. Left said on CNBC’s Street Signs.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ([email protected]) or his Google+ page (https://plus.google.com/103338576216002376250).



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