Plug Power Inc (NASDAQ:PLUG) Tests Key Support as Catalysts Pick Up

Plug Power Inc (NASDAQ:PLUG) has been a leading name in the electric vehicle space over the past two years, with shares vaulting from $3 per share to as high as more than $70 per share since December 2020. But PLUG is now back down under $20, and investors are wondering what’s next.

For starters, the company just announced, along with Edison Motors, a leading Korean electric car manufacturer, that the companies have signed an agreement to develop and bring to market a hydrogen fuel cell-powered electric city bus.

According to the release, Plug Power’s 125kW ProGen fuel cell engine will provide power to Edison Motors’ electric bus platform. The companies expect to have a fuel cell electric bus prototype completed by the second half of 2022 and be prepared to launch a mass-market platform by the first half of 2023.

Plug Power Inc (NASDAQ:PLUG) provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe. It focuses on proton exchange membrane (PEM) fuel cell and fuel processing technologies, fuel cell/battery hybrid technologies, and related hydrogen storage and dispensing infrastructure.

The company offers GenDrive, a hydrogen fueled PEM fuel cell system that provides power to material handling electric vehicles; GenFuel, a hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing maintenance and service program for GenDrive and GenSure fuel cells, GenFuel products, and ProGen engines; and GenSure, a stationary fuel cell solution that provides modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors.

As noted above, PLUG just announced, along with Edison Motors, a leading Korean electric car manufacturer, that the companies have signed an agreement to develop and bring to market a hydrogen fuel cell-powered electric city bus.

Andy Marsh, CEO of Plug Power Inc., said, “Plug Power has a goal to expand our global footprint to stimulate the Asian hydrogen and fuel cell market. We acknowledge this is one of the fast-growing markets in the world and believe that this partnership with Edison Motors, will pave the way to achieving global net zero.”

Recent action has seen just shy of -10% tacked on to share pricing for the name in the past week, a rally that has pushed up against longer standing distributive pressure in the stock. However, PLUG has evidenced sudden upward volatility on many prior occasions. Furthermore, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 52% beyond its prior sustained average level.

At this time, carrying a capital value in the market of $10.8 billion, PLUG has a significant war chest ($4.3B) of cash on the books, which must be weighed relative to about $269.9M in total current liabilities. One should also note that debt has been growing over recent quarters. PLUG is pulling in trailing 12-month revenues of $423.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 34.5%.

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Published by Steve Kanaval

Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80's. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90's managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio's in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published many articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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