Plug Power Inc (NASDAQ:PLUG)’s Shares Plunge

Posted on Jan 10 2014 - 8:00am by Alan Masterson

Boston, MA 01/10/2013 (wallstreetpr) – Plug Power Inc (NASDAQ:PLUG) has been going through some very uncertain times since the last one year. Bouts of extreme uncertainty have been followed by bursts of extreme optimism. The stocks have also mirrored this trend.

Plug Power and its Pluses:

One year ago Plug Power Inc (NASDAQ:PLUG) was set to file for bankruptcy, some time back a possible delisting from NASDAQ. The situation has changed drastically within some months. Since December, 2013, the shares have risen from $0.70 to $4.55 on January 8, 2014. Yesterday, they also saw a decline of more than 27% to close at $3.32 during active trading. After hours trade saw them rise by more than 5%.

Plug Power has some good things going:

  • It is expected to become profitable in the first half of 2014.
  • Plug Power has received $3 million funding from DoE (Department of Energy) to develop and test fuel cell range extenders. This equipment will be fitted on 20 electric powered FedEx Corporation (NYSE:FDX) and is expected to extend the range by more than 100%. If successful, this will open up a lucrative market for Plug Power as both FedEx and United Parcel Service, Inc. (NYSE:UPS) are always looking for fuel efficiencies.
  • The company has also received $2.5 million funding to develop fuel cell prototypes for ground support equipment and is working with FedEx on this.

These are only some important takeaways.

Why is the company lagging?

Many of these things were apparent even prior to November, 2013 just before the stock prices zoomed up. There appears to be some behind-the-scene workings going on which are responsible for the drastic rise. Investors need to be concerned as many such hi-tech companies do not live up to the promises. But again, one good quarter or a large order can change the scenario drastically. It can happen with Plug Power Inc (NASDAQ:PLUG) also.

One thing is certain, the stock is definitely not recommended for the weak hearted.

About the Author

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 (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).

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