Plug Power resumes climb, +12% after filing for stock and warrants offering


Plug Power (PLUG +12.1%) is back on the move after it priced an underwritten registered offering of 10M common shares with warrants to purchase 4M additional shares.

PLUG hopes to gain net proceeds of $28M from the offering, to be used as working capital and for general corporate uses such as capital expenditures.

Shares fell back yesterday for the first time this year, but have gained ~150% YTD.

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Comments (30)
  • Zorro Trades
    , contributor
    Comments (82) | Send Message
     
    Insitution wanted in Plug at $3.00 and they got it.

     

    Watch for solid floor at $3.00 before we churn higher to $5.

     

    http://on.mktw.net/1a6...
    10 Jan 2014, 10:49 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (901) | Send Message
     
    This is excellent news indeed, we have an absolute bottom of $3 per share indeed and the warrants even are executable at $4 so the future is promising! The "Doctors" bear articles have already been effectively countered by this offering. Great move PLUG.
    10 Jan 2014, 11:02 AM Reply Like
  • ThomasSchonig
    , contributor
    Comments (2) | Send Message
     
    Calling $3 an "absolute bottom" may be a bit optimistic and doesn't jive with how support and resistance works.

     

    It's conceivable that the IBD group at Cowen underwrote the offering and sold it to their own IS group. At which point they could've flipped the shares at today's openning price, and would then end up with the underwriting fees and warrants on 4m shares for free.

     

    I have a healthy skepticism that PLUG went to them to underwrite, and they sold all of the shares to a single institution. It's usually in everyone's best interest to probe multiple customers for demand and get the offering price bid up - the underwriter collects more fees, the company gets more cash, and the buyers get a fair price still below market.

     

    A single buyer just doesn't make a whole lot of sense, unless they were the only buyer or Cowen is profiteering off retail demand.
    10 Jan 2014, 04:49 PM Reply Like
  • wengang1
    , contributor
    Comments (3) | Send Message
     
    "jive" is the wrong word here. It should be "jibe". It's a common error.
    12 Jan 2014, 09:41 PM Reply Like
  • junqline
    , contributor
    Comments (4) | Send Message
     
    i think you mean "jibe". Jive means to tease or trash talk, or even to play jazzy music.
    12 Jan 2014, 11:31 PM Reply Like
  • VeniaminK
    , contributor
    Comments (2) | Send Message
     
    Good point of free warrants. I have been thinking that some IBD group, you have mentioned Cowen, could have shorted 10mil shares on the market. Sell-off started right day before offering was announced. They could have bought shares back through the offering from the company. This is the easy way to raise cash without talking to any investors. I have doubt that the company is worth above current EV/Sales of 26 with no history of a single profitable year. I would be careful to short this one though. I have done a couple of trades from $1 to $4.48, but to get long term I would look for some track record from the company.
    13 Jan 2014, 12:01 AM Reply Like
  • ThomasSchonig
    , contributor
    Comments (2) | Send Message
     
    ...I meant it as playing jazz ;)
    13 Jan 2014, 09:11 AM Reply Like
  • CleanEnergyNow
    , contributor
    Comments (394) | Send Message
     
    Thomas, I thought it was "jive" too but I guess the "jibes" have it...
    http://bit.ly/1hUJXhD
    14 Jan 2014, 05:14 PM Reply Like
  • cool3390
    , contributor
    Comments (2) | Send Message
     
    lol "doctor" He tried to give plug cancer!
    17 Jan 2014, 01:28 AM Reply Like
  • GameKing13
    , contributor
    Comments (721) | Send Message
     
    Mr fox,
    I'm new at this but am in big with PLUG. Can you explain your comment?
    10 Jan 2014, 12:13 PM Reply Like
  • Sellinpanic
    , contributor
    Comments (901) | Send Message
     
    @Rookie,

     

    I'll give it a go at, if you read the linked news article, there is a large player joining in as the company's largest outside shareholder. They get to buy with a base price of $3 per share and additional shares at $0.40 when PLUG is at least at $4, not before that. All in all this means that the institution involved sees promising growth and value otherwise they would not put $30mil in the offering. This gives great confidence in the share price action since obviously $3 bucks will offer great resistance point because the share offering price is based at that and additional shares can only be bought at $4+. Also PLUG gets the much needed cash infusion to expand their operations, this is truly a great move and a big confidence booster in the underlined business operations. Many of the recent days questions in related PLUG articles has been answered big time, this was maybe the biggest question for the near future while we are waiting for profitability by Q214. This is similar to last year's TSLA offering when the stock price had surged though of course at a smaller scale.
    10 Jan 2014, 12:52 PM Reply Like
  • Doewap
    , contributor
    Comments (1037) | Send Message
     
    That's not correct at all. The warrants are not to buy shares for 40 cents...

     

    Read carefully:

     

    The shares and the warrants are fixed together, with each combination consisting of one share of common stock and 0.40 of a warrant to purchase one share of common stock. The warrants will have an exercise price of $4.00 per share, are immediately exercisable and will expire on January 15, 2019. The price on the offering was $3.00 per fixed combination, making for gross proceeds of $30.0 million.

     

    end quote

     

    So, they will be able to hand in 2.5 warrant to buy 1 common share for 4 dollar and do so until 15jan2019.

     

    They are speculating that Plug will be over 4 dollar at least some part of that period.

     

    Plug is issuing 10 million shares + potentially another 4 million (10 times 0.4)
    10 Jan 2014, 03:19 PM Reply Like
  • Sellinpanic
    , contributor
    Comments (901) | Send Message
     
    @Doewap,

     

    I stand corrected, yes it's even better this way. :)
    10 Jan 2014, 04:05 PM Reply Like
  • Guy Nonplussed
    , contributor
    Comments (3) | Send Message
     
    @Sellinpanic, thanks for the helpful description, but that's not how I read the warrant portion of the announcement. According to the news release, the warrant is for 0.40 share exercisable at $4.00, not $0.40/share. So in other words, if one buys 1000 of the combination units @$3, one gets 1000 shares today and in effect an option to purchase 400 shares @$4 in the future.
    10 Jan 2014, 04:49 PM Reply Like
  • Sellinpanic
    , contributor
    Comments (901) | Send Message
     
    @Guy,

     

    That is correct and that is good news since the stock price is below $4 for the time being showing confidence that PLUG will succeed.
    11 Jan 2014, 03:19 AM Reply Like
  • GameKing13
    , contributor
    Comments (721) | Send Message
     
    @sellinpanic

     

    Got it, thanks.ive been buying what I can hoping for the future... Oh and btw what information is being released on January 14th? I thought I heard something about that.
    10 Jan 2014, 12:57 PM Reply Like
  • Sellinpanic
    , contributor
    Comments (901) | Send Message
     
    Jan 14 we are waiting basically for more information on the profitability & outlooks for Q413 & Q14 through CC. That will definitely be the biggest booster of stock price, but also the biggest challenge which will undermine PLUG's future performance. We are truly waiting and hoping that the company has finally turned the page and marches forward in the fuel cell industry to become a multi-bagger. However, remember this stock is a speculative risk play.
    10 Jan 2014, 02:09 PM Reply Like
  • EL34
    , contributor
    Comments (6) | Send Message
     
    Excellent, thanks for the insight
    10 Jan 2014, 01:14 PM Reply Like
  • D.Xenos
    , contributor
    Comments (3) | Send Message
     
    Good job PLUG Power! We have faith in you. This is just the beginning. Once your stats of cost savings from your clients catch on, I believe Plug will grow very fast overseas. Next stop, Amazon baby! Amazon warehouses will be sprouting like weeds. One can only imagine the cost savings after applying Plug's technology to there distribution centers.

     

    By the way to all you plug investors, When you see those hateful bearish articles about plug and why it should be shorted. Let me just say as a professional technical analyst, the bearish articles will always pop up when the charts show overbought levels and are in need of a HEALTHY correction/pullback.

     

    In other words the bears always try to instill fear when they know the stock is about to pullback for technical reasons.

     

    I've noticed this pattern in countless stocks. They will write bearish articles at overbought levels, and bullish articles at oversold levels.

     

    So my personal opinion is to hold on and perhaps even look at a pullback as an opportunity to purchase more shares at a temporary lower price. It's been working for me and has made me relatively wealthy in the past year and a half.
    10 Jan 2014, 01:57 PM Reply Like
  • Skills that make Mills
    , contributor
    Comments (31) | Send Message
     
    Good post. As much as I hate to admit it you are right. The Bears(at times)are a necessary evil. This thing was getting a little out of hand before the Good Doctors article pulled the stock back a bit.
    10 Jan 2014, 08:59 PM Reply Like
  • maggas
    , contributor
    Comments (473) | Send Message
     
    i could not have said it better myself. Cramer's Street, is panicking. The now call it a dead cat bounce.
    13 Jan 2014, 02:42 PM Reply Like
  • Waldimann
    , contributor
    Comments (16) | Send Message
     
    Just one question, how can Plug afford selling below cost and why??
    10 Jan 2014, 04:50 PM Reply Like
  • Camerpl79
    , contributor
    Comments (2) | Send Message
     
    Up on a day of dilution speaks well for the stock. Let's just hope that the CEO speaks well for the company on Tuesday. Needless to say, Mr. Marsh is not shy when it comes to telling good news about PLUG Power.
    10 Jan 2014, 10:15 PM Reply Like
  • noonecare
    , contributor
    Comments (2) | Send Message
     
    Single largest institutional shareholder and single largest order news to be dished out by Andy Marsh next week. Congratulation to longs.
    12 Jan 2014, 09:47 PM Reply Like
  • Butchy1
    , contributor
    Comments (3) | Send Message
     
    I invested in Plug in 2001 and it went from the teens to 34, In 2000 or 1999 it was 140. The reason it went to 34 was because of energy brownouts, electricity was shutting down in California. Now it was at .12 last year. I believe in the technology, and China and the world would benefit. But I am still on the sidelines waiting for more information. It is a speculative stock and but I am not convinced that they will be profitable. I will wait till Tuesday to pull the trigger or not. I Iike the CEO.
    12 Jan 2014, 11:55 PM Reply Like
  • forest2msp@yahoo.com
    , contributor
    Comment (1) | Send Message
     
    Facts based on first hand knowledge with PLUG equipment in operation.
    1. Hydrogen fuel cell battery charges in minutes vs hours with traditional.
    2. Hydrogen fuel cell battery last twice as long on a single charge vs traditional.
    3. Financially beneficial.
    12 Jan 2014, 11:58 PM Reply Like
  • bus pilot
    , contributor
    Comment (1) | Send Message
     
    As an oblivious investor, I have a question about these fuel cells (I probably could do a search myself but I figure I would bring it up here first).

     

    If/when Amazon is announced do you think these cells will be viable in their "possible" airborne delivery network? A reliable power source besides common fossil fuels will be necessary in case one of these drones has an accident. A little hydrogen leak is much better than a fossil fuel fire consuming a neighbors home or tinder dry forest.

     

    Again, it was just a question of viability of fuel cell technology in these drones.
    12 Jan 2014, 11:59 PM Reply Like
  • GameKing13
    , contributor
    Comments (721) | Send Message
     
    That is a really good question
    13 Jan 2014, 08:42 AM Reply Like
  • Omgu8myrice
    , contributor
    Comment (1) | Send Message
     
    Quoting directly from their 10-Q form released 11/14/13 - Page 9 (linked on their site under Investor Relations -> SEC Filings):

     

    "We have experienced and continue to experience negative cash flows from operations and we expect to continue to incur net losses in the foreseeable future. We incurred a net loss of $33.8 million for the nine months ended September 30, 2013, and net losses of $31.9 million, $27.5 million and $47.0 million for the years ended December 31, 2012, 2011 and 2010, respectively. We have an accumulated deficit of $820.5 million at September 30, 2013...

     

    ...To date, we have funded our operations primarily through public and private offerings of common and preferred stock, our line of credit and maturities and sales of our available-for-sale securities..."
    13 Jan 2014, 12:00 AM Reply Like
  • Wong Pow Long
    , contributor
    Comments (12) | Send Message
     
    Toyota is develop hydrogen fuel cell car and plan to sell in state by 2015... is the hydrogen fuel cell developed by Plug power?
    13 Jan 2014, 01:18 PM Reply Like
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