Plug Power Inc (NASDAQ:PLUG)

Buyers Return to Plug Power Inc (NASDAQ:PLUG)

Plug Power Inc (NASDAQ:PLUG)

Plug Power Inc (NASDAQ:PLUG) has borrowed an additional $20 million from the New York Green Bank – bringing its total indebtedness to the bank to $45 million. Last week, Plug Power Inc (NASDAQ:PLUG) jumped 15.09% in one trading session after announcing a new collaborative agreement with WalMart Stores Inc (NYSE:WMT). Previously the company had inked a deal with Amazon (NASDAQ:AMZN), and FedEx (NYSE:FDX).

Plug Power Inc (NASDAQ:PLUG)
Six month daily candlebar graph for $PLUG

Latham, NY-based Plug Power Inc (NASDAQ:PLUG) designs, develops, markets, and manufactures hydrogen fuel cell systems used for the material handling and stationary power markets in the United States. For WalMart and Amazon, Plug Power Inc is supplying fuel cells to power forklifts and other warehouse machinery. For FedEx, Plug Power Inc provided their proprietary ProGen engines for the delivery company’s electric vehicle fleet..

2017 revenues from each of the WalMart and Amazon deals are expected to reach between $70 and $80 million. However the loan was necessary according to Andy Marsh, CEO of Plug Power “Our amended credit facility provides Plug Power with access to additional strategic capital, improves the flexibility of our balance sheet, and ultimately reinforces our position to execute on our long-term growth strategy,” The loan comes with a steep interest rate of 11% and will mature in December of 2019.

Five investment firms follow Plug Power Inc (NASDAQ:PLUG). Three rate PLUG shares as a “Strong Buy”, while two rate the shares as a “Hold”. Their analyst’s consensus target price is $2.84 – about $0.50 higher than current trading levels. Plug Power Inc (NASDAQ:PLUG) has yet to post a profit but the losses shrink every year. In 2012 the per share loss was (-$0.93) but by 2016 it was (-$0.32). Sales originally had an upward trajectory. In 2012, sales were posted at $26.1 million and by 2015 sales were listed at $103.3 million, however in 2016 sales were a disappointing $85.9 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Plug Power Inc (NASDAQ:PLUG) Updates On Deal For Multi-Site GenKey Deployments

Plug Power Inc (NASDAQ:PLUG)

More than 3 years after a Wal-Mart Stores Inc (NYSE:WMT) transaction report pushed the firm’s stock to multi-year high of around $11, Plug Power Inc (NASDAQ:PLUG) is finally back with a boom by disclosing a deal with, Inc. (NASDAQ:AMZN) to use Plug Power hydrogen technology and fuel cells in its fulfillment network.

The update indicates that at selected fulfillment center sites, Amazon will start powering its industrial equipment like forklifts utilizing the GenKey know-how which will provide faster charging times, support energy-efficiency and reduced costs in Amazon’s fulfillment operations.

Following the update, the stock price of Plug Power jumped more than 73% to close the day at $2.25. The gains were supported by a massive volume figure of 137.14 million compared to average share volume of 6.15 million.

The update

Andy Marsh, the CEO of Plug Power, reported that this deal is a remarkable opportunity for Plug Power Inc (NASDAQ:PLUG) to further innovate and advance. The hydrogen fuel cell based technology, commitment to offering cost-savings for consumers, and comprehensive service network has allowed the company to become a trusted associate to many in the industry and they are thrilled to work with Amazon. Revenues associated with the reported commercial agreements are anticipated to be about $70 million in 2017.

Additionally, Plug Power and Amazon will start working on technology collaboration, evaluating the expansion of applications for a product line of ‘ProGen’ fuel cell engines. For the deal, Plug Power has granted  Amazon warrants to buy up to 55.286 million of Plug Power’s stock at exercise price of $1.1893 per share.

Vesting of the warrants is linked to payments of $600 million by Amazon, indirectly or directly, in connection with the procurement of services and goods from Plug Power Inc (NASDAQ:PLUG). An adjustment to the reported exercise price is expected to occur after the initial 34.917 million warrants have assigned. The details of the vesting process and warrants is detailed in a Form 8-K report submitted by Plug Power with the SEC.

The architects of modern fuel cell and hydrogen technology, Plug Power is the modernizer taking hydrogen fuel cell know-how from concept to commercialization. The company has developed the industry with its GenKey solution, which is intended to enhance productivity, reduce carbon footprints and lower operating costs in a reliable, cost-effective measure. GenKey solution brings together all the required elements to fuel, power and serve a customer.

Ticker Symbol PLUG
Last Price a/o 3:21 PM EST $2.25
Average Volume 6.52M
Market Cap (mlns)  $ 436.14M
Shares Outstanding (mlns) 193.84M
Share Float (mlns) 188.99M
Inside Ownership 0.70%
Short Float 19.10%
Short Interest Ratio 5.54
Quarterly Return 73.08%
YTD Return 87.50%
Year Return 10.84%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Analysts Wary of Plug Power Inc. (NASDAQ:PLUG) Fund-Raise Options

Plug Power Inc. (NASDAQ:PLUG)

Research Driven Investing is an independent stock research firm. Today they released an analysis on Plug Power Inc. (NASDAQ:PLUG). The release seems to have been the catalyst for shares trending over 6% higher on volumes twice their normal average. Plug Power is an alternative energy technology provider that designs, develops, manufactures, and commercializes hydrogen fuel cell systems.

Plug Power Inc. (NASDAQ:PLUG) reported its Q4 and full year 2016 financial results. That report pushed shares down 10%. One of the key take-a-ways for investors was the revealing of the need to raise additional capital to fund growth needs that management anticipates in the second quarter and beyond. Plug Power reported 2016 revenues of $85.93 million. That was a significant drop from 2015 when the company reported revenues of $103.3 million. However gross margins widened significantly – from 0.15% to 5.84%. Plug Power reported cash at $46 million at the end of 2016. The company provided guidance for 2017 of revenues expected to be $130 million.

Short-sellers are very active in Plug Power Inc. (NASDAQ:PLUG). Almost 20% of the stock’s float is represented as a short-sale. One of the motivating factors is the management’s admission that a cash injection is required to fund future growth. Analysts have already criticized the terms of existing debt that has an effective interest rate over 11%. Many followers of PLUG feel that the only oath forward in raising cash will be an equity raise which would necessarily dilute shareholder equity. However, to be fair, the six mainstream investment houses that cover Plug Power Inc. (NASDAQ:PLUG) seem to not have the same level of worry. Four rate PLUG shares as a “Strong Buy”, and two rate the shares as a “Hold”.

The published consensus analyst price target for PLUG is $2.00. The stock has a 52-week low of $0.83 and a 52-week high of $2.28. PLUG shares are trading above their 20 and 50-day moving averages but below their 200-day moving averages. Importantly, published reports place Plug Power Inc. (NASDAQ:PLUG) having a cash per share figure of just $0.24.

Ticker Symbol PLUG
Last Price a/o 11:03 AM EST  $                      1.36
Average Volume                6,450,000
Market Cap (mlns)  $                  244.70
Sales (mlns) $85.90
Shares Outstanding (mlns) 191.17
Share Float (mlns) 188.99
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 19.73%
Short Interest Ratio 5.78
Quarterly Return -3.76%
YTD Return 6.67%
Year Return -34.36%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.