I expect PLUG will be clobbered on Monday. The jury is out on whether the hedgies can break support around 1.70. Major news could turn resistance at 2.40 into support.
From Plug Power's website. (Google "Plug Power: Ground Support Equipment"):
"Plug Power is currently developing this technology through a $2.5 million award from the Department of Energy to modify two electric ground support tractors for FedEx Express in Memphis, TN."
FedEx has been testing these two units for just about a year and should be on the verge of making a decision. Another reason PLUG ran up a bit this week might be that FedEx is about to announce that they are going to convert their entire GSE fleet to GenDrives.
A mere "bump it" would suffice.
U.S. traders are dominated by short scammers. European money is old-school investment capital. Plug signed up a Belgian company recently and thus became visible to European investors. JMO.
"Memo to Ottawa: We can solve climate change in our lifetime"
Toronto Star, Nov 26 2015
From the article:
"Over $6 trillion is expected to be invested in clean technology over the next decade."
Plenty of this money will be invested in H2.
Some of it, in fact, might account for the little rise Plug saw on Wednesday.
Could just have run on the technical pump at stoxline. Depends on how many day traders subscribe to that site. Or maybe you're right and there is news.
That FC stealth SUV 3M is working on with the military is a potential cash cow provided Andy rips off the military like every other company does instead of giving them a sweetheart deal that costs Plug more to sell them their FC's than it costs to make them.
Shorts, Plug executives, and day traders willing to accumulate small wins while Plug sorts out its balance sheet. No reason to fear buying the dips and selling the pops and runs.
There is time for Plug to get their finances straightened out before having to dilute.
"Walmart remains a steady key customer impacting Plug Power’s growth. During the third quarter, we continue deployments in new sites, including New Katy, Texas and Cleburne, Texas. To this point, Plug Power has 14 sites deployed with Walmart and expects at least another 10 sites in 2016. Additionally, during the quarter, Plug Power completed our first deployment with new GenKey customer Uline in Pleasant Prairie, Wisconsin."
Plug should be making a profit on all this business. They have a serious problem with pricing.
1.28 and 0.84.
Plug has got to raise their prices and start showing a profit. Selling product at an overall loss is not how you make money. Walmart has been a good customer, but they are also notorious for forcing their suppliers to work for starvation wages. Plug would have been better off if another giant retailer had become their premier customer and they could have charged them higher prices.
I still think Plug has a bright future if they can solve the problems that are keeping them from being profitable right now, but in the present I believe their stock is headed lower -- an inevitable DCB will intervene, but it will be temporary. I also think that rallies on news in the next few months will be short-lived as holders of cheaper shares book a little profit and hope for it to drop back down so they can bottom feed again.
There is more to the story than revenue.
This is going to be a game changer.
Look at product revenue for Q3: 17.9 million. Product gross margin: 15.7%.
Look at service revenue for Q3: 13.4 million. Service gross margin: (-20.5%).
Now suppose product gross margin is 25%, which Andy stood by on today's call for Q4. We will come very close to breaking even in Q4, or we will, or we might even show a profit depending on how all factors add up.
My only complaint is that Andy should have raised his prices months ago. You can't make up with volume if you are losing money on every sale.
"Total administrative costs (including research and development and selling and general administrative) for the third quarter of 2015 were $12.3 million, as compared to total administrative costs of $7.2 million for the third quarter of 2014. The increased costs stem from incremental investments in sales and varied business functions to support continued growth in addition to multiple investments in product design and performance enhancement programs.
"Net loss attributable to common shareholders for the third quarter of 2015 was $10.2 million, or $0.06 per share on a diluted basis."
Without the increase in total administrative costs to support sales and other growth activities today's loss would be half f what was reported for a beat of (.03). Plug is still on track for a blow-out year.
Looking at the chart, PLUG is at the same price today it was the day before Q2 results were announced in August. This is try number two to break 2.80 and find a higher consolidation point. There is resistance in the low 3's, so maybe it will go to 3.25 on a good report.. If results are as good as Matt Matt Margolis thinks they are going to be, PLUG might hit 4.00, although it would take some extraordinary news for it to hold at that level.
You don't have to cut and paste your posts into replies to your posts to keep them on top. Just say "To the top" in a reply. It saves readers having to process repeats of the same text.
Andy finally quits over promising and along comes Matt Marglois with inflated expectations shorts can interpret as a miss when Monday's excellent numbers merely satisfy company guidance. Thanks for nothing, Matt. When are people going to learn to keep their mouths shut and let the market evaluate actual results for themselves when quarterly numbers are released? What is the big rush to be the loudmouth who gets to change a nice big beat into a disappointing miss that isn't even a miss?