|Bid||0.0000 x 1400|
|Ask||0.0000 x 4000|
|Day's Range||4.0300 - 4.3800|
|52 Week Range||1.8600 - 6.0500|
|Beta (5Y Monthly)||1.22|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Hydrogen fuel cells are hot again. Shares of fuel cell generator manufacturer Bloom Energy (NYSE: BE) are up 7.5% for the year, while fuel cell vehicle specialist Plug Power's (NASDAQ: PLUG) shares are up 29.1%. Let's take a closer look at these alternative energy companies and see which one looks like the better buy right now.
Plug Power (NASDAQ: PLUG) has been on a volatile path in the market for more than a decade. Since 2014, the company has also been on a high-potential path as big customers like Amazon.com and Walmart expand their use of hydrogen power for forklifts in warehouses. The chart below tells you a lot about Plug Power's operations over the past decade.
Plug Power Inc. said Wednesday it is offering $200 million in convertible senior notes that mature in 2025 in a private offering. Proceeds of the deal will be used to fund capped call transactions that seek to minimize dilution once the bonds convert into stock, and for "eligible green projects," the maker of hydrogen and fuel-cell technology said in a statement. The notes will be convertible into cash, common stock or a combination, at Plug Power's discretion. Shares fell 1.8% premarket but have gained 38% in the year to date, outperforming the S&P 500 , which has fallen 11%.
There are high hopes for the renewable energy sector, one on which Plug Power (PLUG) is attempting to leave its mark.Yet, the hydrogen fuel cells specialist delivered mixed Q120 earnings results last week. On the plus side, PLUG brought in a record number of gross billings which totaled $43 million and exhibited year-over year growth of 89%. At the other end of the scale, the company missed on the bottom line, posting Q1 GAAP EPS of -$0.12 - $0.02 below the estimates.The company has set an ambitious 2020 goal for gross billings to reach over $300 million, one which B Riley analyst Christopher Van Horn believes “could see some volatility due to recent events around COVID-19.”However, Plug Power’s long-term goal is one which Van Horn can get behind. The analyst said, “We remain confident that the company can achieve their 2024 target of $1B in gross billings and $200M in adjusted EBITDA. New award activity was robust in 2019 and into 2020 and we believe there is strengthening demand for its technology in core material handling markets, as well as lateral opportunities in on-road applications.”Van Horn believes there will be more awards from “various end markets,” throughout 2H20 and maintains PLUG has a strong pipeline. But the analyst is most excited by an announcement made during the earnings call. Plug Power has set its sight on two new acquisitions which should “drive both revenue and margin growth to help meet 2024 goals.”The first concerns the purchase of United Hydrogen, which will boost the company’s hydrogen generation and distribution potential. The second concerns an intention to acquire an electrolyzer company which could provide Plug Power with access to electrolyzer products ranging from 100kw to more than 1MW. Plug Power management expects to close both deals by the end of the second quarter.To this end, Van Horn reiterates a Buy rating on PLUG shares along with a $6 price target, which implies a solid upside of nearly 40%. (To watch Van Horn’s track record, click here)Most of the Street agrees with Van Horn. The analyst consensus rates PLUG a Strong Buy, based on 5 Buys and a single Hold. There’s upside of 42%, should the $6.13 average price target be met over the next 12 months. (See Plug Power stock analysis on TipRanks)Read more: * 3 Stocks Needham’s Top Analysts Are Raving About * Wells Fargo: 2 Big 16% Dividend Stocks to Buy (And 1 to Avoid) * 3 “Strong Buy” Penny Stocks with Massive Upside Ahead More recent articles from Smarter Analyst: * Microsoft Launches Cloud-Based Platform For Healthcare Organizations * Cisco’s Results Disappoint, Revealing a Challenging April * Aldeyra Explodes 30% After-Hours Ahead Of Covid-19 Update Today * Luckin Coffee Will Resume Trading Today
Shareholders of Plug Power Inc. (NASDAQ:PLUG) will be pleased this week, given that the stock price is up 11% to...
Image source: The Motley Fool. Plug Power Inc (NASDAQ: PLUG)Q1 2020 Earnings CallMay 7, 2020, 1:00 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorGreetings and welcome to the Plug Power First Quarter 2020 Earnings Conference call.
Plug Power (PLUG) delivered earnings and revenue surprises of -20.00% and 23.05%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Plug Power's (PLUG) Q1 results are expected to reflect gains from growing popularity of fuel-cell engines and partnership. Supply-chain disruptions, high costs and forex woes might have been dragging.
Plug Power (PLUG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Are you ready to find some deals in the stock markets? The S&P 500 skyrocketed 7% yesterday, marking a strong trading session in what appears to be a true rally. Judging by the market charts, it looks like stocks bottomed out on March 23.Bob Doll, chief equity strategist at Nuveen, noted, "The stock market will bottom before the economy does, The stock market may have bottomed at 2,192 on the S&P."It’s a situation that gives investors an incentive to buy. We’re not in a true bull market – not by a long shot – but the recent bear has pushed prices down and the current rally is opening up the prospects of gains. All that remains is finding the right stocks to buy.And this brings us to penny stocks. After seeing heavy losses in March, investors are short of cash. Penny stocks are the natural fit; priced below $5, they offer an easy point of entry.Sure, there could be a very good reason these tickers are so affordable, but should there be even minor share price appreciation, massive percentage gains could materialize, along with hefty profits for investors.We’ve dipped into the TipRanks database, and found three penny stocks with Strong Buy consensus ratings and better than 50% upside potential over the next 12 months. Let's take a closer look.Zix Corporation (ZIXI)We start in the tech sector, where Zix, a small-cap cybersecurity company specializes in providing safety for emails. Zix’s products allow data encryption and loss prevention for mobile applications. The company boasts over 20,000 customers, and a cloud app that is used by 30% of US banks.ZIXI shares ended 2019 on a mixed note, but a solid product and strong yoy growth were the main story. Company earnings and revenue both missed the forecasts, although did better year-over-year. EPS, at 9 cents, matched the year-ago quarter, while the top line revenue of $50.4 million was significantly higher than 4Q18’s $18.5 million.Zix’s product is popular, and that underlies the review by Northland Securities analyst Nehal Chokshi. He writes, “ZIXI already has ~22% market share. We view this as an ideal market share as it demonstrates the company has an established selling motion, but has significant opportunity to drive share gains within what should be a fast-growing market…”Chokshi reiterates his Buy rating on the stock, and his $8 price target implies an impressive 100% upside potential. (To watch Chokshi’s track record, click here)Craig-Hallum’s Chad Bennett agrees that Zix is a buying proposition. He specifically points out the company’s ability to withstand the current recessionary forces unleashed by the COVID-19 pandemic. Bennett says of the stock, “Ultimately, we believe the company can be resilient in a recessionary environment. Email and security are mission-critical to a business’s operations… ZIXI’s contracts are on one- to three-year terms, so assuming a two-year average contract length, only 1/8 of ZIXI’s customers are up for renewal each quarter. We believe that the ZIXI-side of the business will be resilient in the current environment…”Bennett gives ZIXI shares a $9 price target, indicating a 125% upside, fully supporting his Buy rating. (To watch Bennett’s track record, click here)All in all, Zix supports its Strong Buy analyst consensus rating with a unanimous 4 Buy reviews. Shares are priced low, at just $4.01, and the $10.25 average price target suggests room for a hefty 155% upside potential in the coming 12 months. (See Zix stock analysis on TipRanks)Plug Power, Inc. (PLUG)With our next stock, we move into the arena of reusable energy. Plug Power is a designer and manufacturer of hydrogen fuel cells, a technology with the potential to replace conventional batteries – giving it a certain allure in the alt-fuel automotive sector. The biggest advantage of hydrogen fuel cells over batteries is the ability to run at a constant power output, avoiding the power drop that batteries experience when their charge runs low.Plug Power boasts an agreement with the USPS, and provides power cells for a fleet of electric mail delivery vehicles in Maryland. Earlier this year, Plug introduced a 125-kilowatt engine for trucks and off-road heavy-duty equipment.Plug Power is on track to achieve its goal of $1 billion in revenue by 2024, and has provided guidance toward $300 million in billings for the current year. Plug boasts a heavy order load, and needs to meet a 90% order backlog, based on new orders from established customers.In line with the company’s busy year ahead, H.C. Wainwright, analyst Amit Dayal put a Buy rating on the stock and raised his price target to $6.00 (from $4.00). His new target implies an upside of 63%. (To watch Dayal’s track record, click here)Dayal commented: “We are updating our outlook for the company and have revised our estimates upwards. With respect to 2024 outlook, we remain relatively conservative in projecting net revenues of $759.0M vs. management’s goal of $1.0B in gross billings. In line with this, we have revised our operating expense estimates for 2020 to $84.2M, compared to $76.7M previously. With this level of topline execution, and higher insourcing of MEAs contributing to margin improvements, we believe the company should start demonstrating consistent EBITDA improvements over the next few years."Also bullish is 5-star Oppenheimer analyst Colin Rusch. Rusch sees Plug as an advancing technology, with a handle on the technical issues it needs to resolve, and says of the company, “We believe PLUG continues to progress on its technology roadmap, which targets 25% cost reduction, 50% increase in MEA durability, and 25% improved power density by 2023/2024. We believe these efforts will help expand its addressable market opportunity…” Rusch’s Buy rating, like Dayal’s, is backed by a $6 price target. (To watch Rusch’s track record, click here)Overall, the hydrogen fuel-cell maker is without question a Wall Street favorite, considering TipRanks analytics indicate Plug Power as a Strong Buy. Out of 7 analysts tracked in the last 3 months, 6 are bullish on Plug stock while only 1 remains sidelined. With a return potential of 51%, the stock's consensus target price stands at $5.57 (See Plug Power stock analysis on TipRanks)Orbcomm, Inc. (ORBC)Our final stock today, Orbcomm, is a wireless messaging company with a network of 31 satellites along with ground-based infrastructure. Customers can communicate, control, monitor, and track linked fixed and mobile assets worldwide. The company’s network is deeply connected to the Internet of Things and machine-to-machine niches, and Orbcomm boasts over 2 million billable subscribers. The service is available in 130 countries.ORBC reported a loss of 3 cents per share in Q4, which actually beat the estimated 5-cent loss by 40%. Revenues, at $69.7 million, came in just under the forecast, but grew 5% year-over-year. Orbcomm had the bad timing to release this quarterly report just a week after the bottom fell out of the market in February; the stock has lost 50% so far this year, badly underperforming the overall markets.That said, Orbcomm still presents investors with growing revenues – and now, a very low point of entry to the stock. In addition, many of ORBC’s customers are in the grocery sector, where accurate tracking of delivery vehicles is essential, giving the company a valuable niche in an essential sector – a clear advantage when much of the economy is shut down in an attempt to mitigate the spread of the coronavirus epidemic.Michael Latimore, 4-star analyst with Northland Securities, notes another important factor in Orbcomm’s position -- the company’s solid foundation of parts and supplies. Latimore writes, “ORBC has enough inventory to last four months. Most of its manufacturing is done in Mexico and Germany. These plants could shut down for 1-3 months, but so far so good. China seems to be getting back to work, which helps with standard components like wired cables.”Latimore sets a $6 price target on this stock, implying a fantastic upside of 185%, and gives ORBC a Buy rating. (To watch Latimore’s track record, click here)Overall, a unanimous 3 Buy ratings give Orbcomm a Strong Buy from the analyst consensus. The stock has an average price target of $7.17, which suggests a massive 241% potential upside from the current share price of just $2.10. (See Orbcomm stock analysis on TipRanks)
In the recent past, Plug Power (NASDAQ:PLUG) has seen significant volatility. After touching a 52-week high of $6.05 in the third week of February, PLUG stock declined by 54% to $2.76.Source: Shutterstock This decline was triggered by the company's 40 million share offering at $2.75. Subsequently, the stock has moved higher by 46% and currently trades at $4.03. The sharp rally after the equity dilution has been due to the company's optimistic growth target. While the management sounds bullish, I remain skeptical.Before I discuss my views, I want to talk about a December 2019 report on PLUG stock by Spruce Point Capital Management. The report has an ultra-bearish view on the stock with management credibility, capital structure deteriorating and lack of institutional investors' interest being key negatives.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI do agree with the concerns and I see PLUG stock as a good trading stock than a portfolio stock. Management Target Seems UnrealisticFor the fiscal year ended 2019, Plug Power reported total revenue of $230.2 million. Further, for the current year, the management believes that revenue is likely to be higher by 25% at $300 million. * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem The key concern is the company's guidance of $1.0 billion in revenue by FY2024. From $300 million in the current year, revenue growth has to be at a CAGR of 35.1% to achieve the target.Achieving this target seems difficult considering the following factors -The company's total backlog as of FY2019 looks robust at $797.4 million, but the backlog will be executed over a period of 90 days to 10 years. Clearly, the backlog needs to be ramped-up significantly if the revenue target has to be met.In the last financial year, PlugPower witnessed backlog growth of $257.4 million (net of order executions). This is not enough to convince the markets on potential revenue of $1 billion in the next five years.It's worth noting that for FY2018, Plug Power reported restricted cash of $71.6 million. Over the next 12 months, the restricted cash swelled to $230.0 million. The reason is vendor financing.For the last year, Plug Power reported revenue of $230.2 million and restricted cash increased by $158.5 million. Therefore, there is a significant dependence on vendor financing driven revenue growth. This is not sustainable in the long-term. It remains to be seen how the company can drive growth without the dependence on vendor financing.The scalability of the company's business model is still doubtful. The key reason is that hydrogen fuel cells are expensive. An adoption, similarly to electric cars, is only possible if the cost declines and the fuel cell infrastructure is ramped-up. Leverage and Equity DilutionTowards the end of FY2019, Plug Power offered 40 million shares at a price of $2.75. This translated into total secondary offering proceeds of $110 million.Besides the equity dilution, in the last financial year, the company's total debt and finance obligations was $377.4 million. On a year-on-year basis, the total debt financial liabilities increased by $242.4 million.The point I am making here is that there is an increase in sources of funding, but that has not translated into strong growth. Further, factors like vendor financing to trigger revenue growth is concerning.I want to add that the company also has $110 million in convertible senior notes in the balance sheet as of FY2019. This implies further dilution of equity in the coming years.To add to the worries, Plug Power reported cash used in operations of $51.5 million for the last year. The company's cash flow from operations has consistently been negative with no guidance on the time-line for positive cash flows. As cash burn continues PLUG stock is unattractive. My Concluding Views on PLUG StockConsidering the volatility in PLUG stock in the last few months, traders can consider exposure for short-term gains. However, there are too many uncertainties to consider the stock for the portfolio.In particular, the company's growth target seems unrealistic and there are significant credit metrics worsening. Moreover, the prospect of further equity dilution due to sustained cash burn is also likely to keep investors away from PLUG stock.With uncertain economic conditions due to the COVID-19 pandemic, it makes sense to be invested in stocks with strong fundamentals. From this perspective as well, PLUG stock can be avoided.Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock-specific articles with a focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem * 5 Bank Stocks to Buy Now Because This Isn't 2008 Again * 12 Stocks to Buy That Are Already Positive The post With Mediocre Fundamentals and a Financing Problem, Avoid PLUG Stock appeared first on InvestorPlace.
If the pandemic-hit economy needs a fix, why not skip the patch-up job and fix it for the long haul? That’s the view of environmental advocates who have penned a detailed $2 trillion proposal that gives a nudge to last year’s Green New Deal.
CEO Andy Marsh projects internet food sales and remote working will take off well after the number of coronavirus cases subsides.
Plug Power (NASDAQ:PLUG) stock has had exceedingly volatile year. If you're a trader, PLUG stock has offered a wealth of opportunities to catch big swings. For investors, however, all the ups and downs have likely been discomforting.Source: Halfpoint/ShutterStock.com Plug Power's latest tumble has both traders and investors running for the exits. Since its peak at $6 per share in February, PLUG stock lost as much as half of its value. Given its past volatility, you might think that Plug Power is set to bounce right back up. And that may be true in the short run. * 10 Stocks to Invest In for a Post-Coronavirus Whipsaw But be careful. This is a company facing a great deal of challenges. As economic headwinds continue to mount, Plug Power may find itself entering a prolonged slump.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Another Sour Earnings Report for PLUG StockPlug Power has a history of tending to produce underwhelming earnings reports. And they stuck to the trend with the Q4 results that they published on March 5. Revenues did beat expectations, but the non-GAAP loss of 7 cents per share fell 1 cent short of expectations.And that was after expectations had come way down. You may recall that in a shareholder letter at the start of 2019, the company guided to $235 million to $245 million of gross bookings for full-year 2019. This, in turn, would lead to "slightly negative to slightly positive" operating cash flow for the full year.They did hit the low end of revenue guidance, bringing in $237 million of bookings for the year. But profit margins went way south, resulting in a huge cash outflow. Instead of being breakeven as forecast, they consumed more than $65 million of cash operating the business in 2019.In addition to that, management confirmed that one of their most highly touted new customers of 2019, StreetScooter, will be out of the picture going forward. StreetScooter was supposed to deliver vehicles to Germany's logistics company DHL. Plug Power's CEO Andy Marsh said on the Q4 conference call:We're sorry to see that StreetScooter is encountering financial difficulties with their battery electric vehicle program. We'll continue the remaining contact and work with them, but look, I think that the press has been pretty clear that they're really stepping back to kind of understand what their next steps are. And so, we have no choice, but to continue to work with others.This brings us to the next problem. Cheap OilA recent Bloomberg article noted a difficulty that Tesla (NASDAQ:TSLA), Nio (NYSE:NIO) and other electric vehicle makers will be facing. They quoted AlixPartners' head of automotive practice, Mark Wakefield, who stated: "It's certainly bad news for any electric vehicle launch if a drop in gas prices stays around for several months […] If the gas-price drop gets to a level where consumers can start to trust it, they will shift out of fuel-efficient cars into less fuel-efficient cars."To be fair, hydrogen fuel cells aren't electric vehicles. The energy cost savings calculus isn't precisely the same. But the same general principal applies. As hydrogen fuel cells were only economical in limited use cases in an expensive fossil fuel world, they become an even more niche product in a world where diesel fuel and other readily-available options are dirt cheap.The oil price crash of the 1980s killed off a ton of green energy and cleantech companies then, and we could see a similar effect happen in the early part of the 2020s. Companies with weak balance sheets like Plug Power are at great risk. Cash Remains in Short SupplyWhen Plug Power's stock price was still riding high recently, the company managed to raise $120 million in a secondary offering. That, combined with the company's existing cash position, might make it look like PLUG stock is in decent shape. But that's simply incorrect, as there is a devil in the details.Plug Power has a restricted cash problem. The company uses vendor financing, which means that it sells products to customers and can claim revenue immediately. However, Plug Power doesn't force its clients to pay up on the spot, instead setting up a lease structure that gets paid off over time. As a result of various transactions related to this, Plug Power has a ton of restricted cash that it cannot yet access to manage its day-to-day needs.Over the course of 2019, according to SEC filings, Plug Power's restricted cash position ballooned from $54 million to $175 million. This is not a healthy situation. It shows Plug Power's weak bargaining position when its customers can get such favorable terms when buying Plug Power's products. Meanwhile, the company ends up diluting shareholders repeatedly to try to keep the business running. PLUG Stock VerdictAs I have explained previously, Plug Power is a story stock. The company has been in business for decades and has little to show for it. The company has historically lost hundreds of millions of dollars. It has frequently appeared to be at a turning point where it would become a sustainable profitable business, but then something inevitably goes wrong.Plug Power had a promising moment there at the end of 2019. But like so many times before, the story got ahead of the financial realities. Now, this latest stock market plunge and economic downturn has cast a dark shadow over Plug Power's potential. Maybe PLUG stock was finally going to breakthrough. But it seems deeply unlikely now that the economic winds have shifted.At the end of the day, Plug Power remains deeply unprofitable and is likely to need more cash sooner or later. Given its plunging share price and the quickly sliding credit markets, raising funds will not be easy. This likely means that Plug Power shareholders will need to deal with even more share dilution going forward. That, in turn, would cause shares to slide even further.Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. As of this writing, he held no positions in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post Plug Power Stock Is a Falling Knife: Steer Clear appeared first on InvestorPlace.
The transport industry is in the midst of tectonic change, brought on by a flurry of regulations targeted at reducing its carbon emissions. The push has been particularly pronounced across the last-mile delivery segment. Unlike other aspects of logistics operations, the last mile touches end consumers directly, increasing public glare and thus the relevance of switching to low-emission vehicles for deliveries.Electrification of powertrains has been widespread, with several large freight forwarders like UPS Inc (NYSE: UPS), FedEx (NASDAQ: FDX) and DHL replacing internal combustion (IC) engine vehicles with electric vehicles. The growth of e-commerce and the steady flow of people into urban spaces will create more demand for last-mile delivery, making it vital for companies to gradually make the shift. FreightWaves caught up with Keith Schmid, the COO of Plug Power, a fuel cell technology startup, to discuss the impact of alternative-fuel vehicles in the last-mile segment and Plug Power's position in a disruptive market that is seeking to reduce its carbon footprint."As we move forward, e-commerce will be a big part of the consumer buying experience. At Plug Power, we understand that these goods need to be delivered in a climate-friendly way, and we see the electrification of delivery vehicles as a key important step," Schmid said.Electrification helps because, in addition to reducing at-vehicle emissions to zero, the vehicle operates silently due to the absence of a combustion engine. This allows electric vehicles to deliver late in the evening and early in the morning, as they do not disturb neighborhoods."There will be a multitude of options for vehicles within the last mile, one of which is fuel cell technology. Fuel cells make a lot of sense when you have high-utilization vehicles," Schmid said. "For example, fleet delivery vehicles that are going to run throughout the day have high utilization. You can envision a future with autonomous delivery vehicles with a hybrid fuel cell powertrain."Image Sourced from PixabayAs emissions regulations tighten within urban spaces, companies would have to make the shift. With most last-mile fleets looking to improve utilization and range, Schmid contended that fuel cell electric vehicles made the most sense."As last mile electrifies, we believe that there will be a significant place for autonomous vehicles and high-utilization commercial fleet vehicles with fuel cell powertrains," Schmid said. "Plug Power has created the first commercial market for fuel cell electric vehicles. We did it in material handling — helping move goods within large manufacturing plants and distribution centers."Within that space, Plug Power has managed to scale its business while providing a value proposition that was agreeable to large retailers like Walmart, Amazon and Carrefour. "We have over 30,000 material-handling vehicles that are powered by Plug Power fuel cells in the market today. With that, we have over 300 million run hours of experience on those fuel cells," Schmid said.That said, governments need to step in and create public policy that regulates and incentivizes companies to adopt electric vehicles. "We see that in several large cities, the administration is driving emission requirements. They are beginning to either tax diesel IC-type commercial vehicles or are limiting the days and time zones across which they can operate," Schmid said.If regulations made it difficult for diesel vehicles to operate in the last mile, the switch to electrification would only be quicker. The last mile apart, phasing out IC engines is a move that makes business sense even for stakeholders operating within the first and middle mile.For instance, the middle mile that accommodates long-haul transport can benefit massively from pushing for fuel cell electrification. Unlike battery cells, fuel cells do not take up a lot of space, providing fuel cell fleets with a lot more cargo capacity. Charging fuel cells is also instant, unlike the charging cycles associated with lithium-ion batteries. With adequate infrastructure, fuel cell vehicles can transform the middle mile as we know it."The hydrogen fuel cell value proposition is great as there are no other options in the market that can more closely replicate the operational environment that customers have today," Schmid said. "Fuel cells dovetail nicely into many of these customers' operations as they already exist, making it easy for adoption."Image by John R Perry from PixabaySee more from Benzinga * Dry-Bulk Derivatives Are Flashing Red On World Economy * Breaking: Canada Locks Down Borders — But Not For Freight — As Crisis Worsens * International Longshoremen's Association Backs Biden(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Plug Power (NASDAQ:PLUG) is riding a wave of positive momentum that could see higher prices for years to come. But everything I say today comes with the caveat that Wall Street is in turmoil. Despite PLUG stock's long-term thesis, there are macroeconomic influences that could change its short-term trajectory.Source: Halfpoint/ShutterStock.com Energy -- particularly oil -- is dominating the headlines this week. This is thanks to a stunning move from Saudi Arabia that slashed crude oil prices and flooded the market.Apparently, this strategy is intended to bring Russia back to OPECs's negotiating table. OPEC wanted Russia to agree to oil production cuts that would help stabilize the market in the wake of the coronavirus from China.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe immediate impact of this was an overnight collapse in oil prices -- and therefore oil stocks. This also affects alternative energy stocks like PLUG stock. Because fossil fuel prices are down over 20% this week, the long-term thesis for Plug Power and its peers is weakening.But don't panic. This doesn't mean that the long-term argument dies along with oil prices. It's just a hiccup in the middle of a positive trend. Eventually, prices will go back up and we will need to use more of the company's products and services if we want to sustain the planet. The Fundamentals of Plug Power StockPlug Power trades for less than $5 but that doesn't mean it's cheap. Yes, it's still losing money, and it sells at a price-sales ratio near 5. Clearly there is some froth here to shed in times of trouble. * 9 Recession-Proof Stocks to Disinfect the Coronavirus However, the company just reported earnings, and they beat expectations on margins. The loss was smaller than feared, but the sales were still smaller than forecast. Naturally, investors' knee-jerk reaction was to sell the stock down hard on the earnings headlines.In the end -- and at its lowest this week -- the stock was down over 20% from its pre-earnings levels.It is important to note that this drop was exacerbated by the market-wide crash in oil. After all, the CBOE Volatility Index (VIX) is holding up near 50. That is an indication of a turbulent market.At times like this, investors shoot first and ask questions later, so I won't be quick to judge the dip as a negative vote against Plug Power. There Are Technical Headwinds in the ChartSource: Charts by TradingView Looking past the fundamentals, there are other potential pitfalls brewing in the chart. Plug Power's drop below $4.30 per share put the short-term trading action in the hands of sellers. This means that spikes are likely to fade until bulls are in control. This can happen if they can lift the stock by at least 20 cents.The good news is that for the long term, buyers are still in charge. PLUG stock has been setting higher lows since August.Stated simply, Plug Power is part of the clean energy movement, which alone makes its long-term thesis viable. Moreover, there has been a recent push into greener environmental, social and governance (ESG) investing. The best minds in the investment community are on board, and even BlackRock (NYSE:BLK) has released a statement regarding its responsible standards going forward.So far, investors are voting (and buying) along with this trend. And as long as Plug Power stays above two important pivot zones at $3.50 and $3, the bulls have support.The experts agree with this positive outlook since it the stock is still trading 50% below the average price target of $5.88. Plug Power's OutlookDuring the earnings calls -- and in reference to the coronavirus -- CEO Andy Marsh assured investors that suppliers in China are not reporting any material disruptions. He went further, saying that Plug Power has "never been in a better position" and that 2020 is shaping up to be a good year for the company.For the bulls, these are comforting words. All the stock needs is to survive the turbulence on Wall Street and then the business will take care of itself.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Recession-Proof Stocks to Disinfect the Coronavirus * 7 Energy Stocks That Are Too Cheap to Ignore * 5 Disruptive ETFs to Invest in the Most Innovative Tech Stocks The post Generate Cleaner Profits Today With Plug Power Stock appeared first on InvestorPlace.
The manufacturer has been on a hiring spree as the number of fuel cell shipments tripled from 10,600 to more than 32,000 over the past five years.
Shares in Plug Power (NASDAQ:PLUG) are up 27% on the year but you can wait on the big gains.Source: Halfpoint / ShutterStock.com Plug Power makes fuel cells, which combine hydrogen with oxygen from the air to produce energy. Water is the byproduct. Unlike FuelCell Energy (NASDAQ:FCEL), which sells its engines to utilities for back-up power, Plug Power focuses on warehousing. Forklifts with fuel cells can go all day without being refueled.Plug Power is now trying to expand this niche by getting into trucks, with advanced diagnostics that let owners track them.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe focus is on the "middle mile," deliveries made between warehouses, with hydrogen stored at the warehouses for easy refueling. Too Early or Too LateIt's all part of a five-year plan, which the company insisted in its March 5 earnings release is on track. But a loss of 6 cents per share, albeit on revenue of over $91 million, sent shares down anyway.Before earnings, InvestorPlace analyst Louis Navellier was calling the stock "unstoppable." Over the long run that might be the case. * Buy the Dip in These 7 Online Advertising Stocks Now But with fossil fuel energy costs falling, and the prospect of a global recession, the near term looks dicey. That's why InvestorPlace's Larry Ramer wrote on March 2 that investors should wait until after coronavirus fears subside to buy the stock. He wrote after taking profits on two months that saw the price move from $3.23 per share to over $5.My own view is that these are early days for Plug Power. Plug Power has been touting the idea of using electrolysis, powered by solar or wind energy, to produce hydrogen. But for now, the primary feedstock remains natural gas. While natural gas is cheap and plentiful, burning it is a cheaper way to use it. Fuel cells aren't quite as green as they seem. An Established NicheThe best news for Plug Power is that it has established a niche for itself in warehousing. Cleaner operations, lower maintenance costs and shorter fueling times all working to its benefit.The problem for small investors is that its customers could be its undoing. Under a 2017 sales agreement, Amazon (NASDAQ:AMZN) won the right to buy up to 23% of Plug Power if its total orders came to $600 million. Such a move would water down the holdings of existing shareholders.Walmart (NYSE:WMT) is another big customer for hydrogen-powered forklifts. It was estimated in 2018 there were already over 20,000 hydrogen-powered forklifts in operation.Going from warehouses to the streets may be tougher. Here, fuel cells must compete directly with natural gas. United Parcel Service (NYSE:UPS) is a big user of natural gas in its delivery vehicles, and those moving between warehouses would be of the same class. Hydrogen is also harder to store than natural gas.While natural gas is a fossil fuel it's often sold as "clean" energy, because it offers lower emissions than oil. The industry works around critics by taking some of its gas from landfills, calling this "renewable." Fuel Cell Energy also uses landfill gas to power its fuel cells. The Bottom Line on PLUG StockPlug Power is doing much better than other energy or transportation stocks in 2020. The shares fell 9% on March 9 but recovered nearly all that loss overnight, opening at $4.15. Plug Power's market capitalization is about $1.2 billion, on trailing year sales of about $200 million.It means that, for now, the stock is fully valued. This is a speculative stock for younger investors. It could be a 10-bagger, increasing in value by 10 times, assuming the company's five-year plan works. For now that's still just an assumption.Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Healthcare Stocks Worth Your Time Now * Buy the Dip in These 7 Online Advertising Stocks Now * 7 Services Stocks to Buy on Coronavirus Weakness The post Plug Power Needs Its Fuel Cell Logistics Plan to Pan Out appeared first on InvestorPlace.