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"Expect the best. Prepare for the worst. Capitalize on what comes." - Zig Ziglar Like most, I tend to play both sides of the market and with a diversified portfolio. I have longs and shorts. Innovation is key for my interest. Innovation sparks interest in all investors and should not... More
  • PLUG, FCEL, And BLDP Preparing For A Rebound 1 comment
    Mar 11, 2014 8:06 PM | about stocks: FCEL, PLUG, BLDP

    In light of today's events regarding Plug Power Inc., some clarification is needed. PLUG, BLDP, and FCEL have been 3 of the hottest stocks in the market lately, which any investor could clearly see.

    Why the sudden explosion in price the past couple days?

    EVERYONE has seen these stocks topping the charts in the past several weeks. These stocks exploded with everyone jumping into the stocks trying to "get rich quick". This includes those who failed to research the companies and there inevitable future success and turnaround. It's these same investors who immediately pulled out of the market when Andrew Left of Citron Research made a ridiculous claim that these shares are only worth $0.50/share. Honestly, the prices these stocks closed at as of Tuesday, March 11th are really where they belong. A sudden boom similar to the past couple days indicates the hype. However, the steady and stable climb you have seen over the past few months is real and based on facts (earnings, contracts, opportunities, partnerships, etc.).

    What's Next For PLUG, BLDP, & FCEL

    Now that the market has "calmed down" and the stocks have settled by days end, you can expect to see these stocks continue to climb at a reasonable rate. Plug Power Inc. is due to report earnings after closing on Thursday, March 13th. I would expect them to at least meet (most likely beat) expectations, which would prove Left's "analysis" to be completely false. Expect a small surge after Plug's earnings on Thursday, but don't expect a $4/share surge.

    Any truth to Citron Research's Announcement?

    The answer is simple...no. What facts/evidence did Andrew Left provide for assessing that PLUG's stock was only worth $0.50/share? Absolutely none. He would be correct had Plug's stock jumped from $0.75 to $11.00/share overnight. However, it has been a steady climb upwards towards $6.00/share. Andrew Left is in on the short game and openly admits this. He's no idiot. You can bet that Left made money on the way up, sold, released his statement on Plug, then bought after the downward spiral leveled off towards the end of the trading session today. Had there been truth to his argument, you would have seen the stock crash to $1.50/share or less today.

    If you research these companies you'll notice their sales are growing each year and their costs decreasing. The cost of producing fuel cells has been cut nearly in half. The math is simple here:

    Lower Costs + More Contracts/Commitments = GAINS

    *Not to mention large volumes of orders are being shipped out now to catch up with backorders.

    While you may not see these gains in Q2 this year, you will see them in Q3 and Q4 for Plug. BLDP will benefit by association.

    Best Approach For These Stocks?

    You can benefit on PLUG, BLDP, and FCEL whether you're short or long. Expect another surge from these companies with another correction soon to follow. But expect a gradual climb throughout the year, which is sure to exceed the recent highs for these stocks.

    I chose to take the position of long on these companies as it is now their time. Stocks will be stocks, and you can expect to see more surges due to hype, but don't believe that it is all due to hype. Many big investors kept their stock in these companies even through the downward fall today as they see the potential for profit. I expected a surge in the stocks this week with a soon-followed correction, but I didn't expect such a surge. Nonetheless, these stocks have done just as real analysis (as opposed to Andrew Left) predicted.

    These stocks are now back on track!

    Disclosure: I am long PLUG, FCEL, BLDP.

    Stocks: FCEL, PLUG, BLDP
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  • jman2014
    , contributor
    Comments (8) | Send Message
     
    Author’s reply » Judging by the market this morning and the gains that all three companies are seeing, I believe it's safe to say I told you so. Now is the time...buy, buy, buy!

     

    Best of luck to all investors in these three companies (long & short).
    12 Mar, 10:47 AM Reply Like
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