Seeking Alpha

Plug Power in 3.9M-share public offering, shares -5%

  • Plug Power (PLUG -4.9%) prices a registered offering of ~3.9M common shares at $5.74/share for gross proceeds of $22.4M; the stock closed yesterday at $6.75.
  • PLUG says it intends to use the net proceeds of the offering for working capital and other general corporate purposes, including capital expenditures.
  • Despite today's action, PLUG is +320% YTD.
Comments (20)
  • Mike P.
    , contributor
    Comments (78) | Send Message
     
    After talking with Plug Power last month it was revealed that the company no longer uses the PEM Cells manufactured by Ballard Power, this could be good or it could be bad. Plug Power rarely answers its phones and you have to chase them down to get any answers about the company. I would be careful, this stock drops like a rock on a regular basis.
    In the past, Plug Power used Ballard Power Systems manufactured fuel cells. These cells take Hydrogen Gas, and Oxygen to function, they pipe the gasses into the cells to convert it to electricity through a proton exchange membrane (PEM Cell), the cell is composed also of Platinum for the hydrogen reaction. Platinum is very expensive so I am sure these PEM Cells are also.

     

    Plug Power uses these types of systems to power forklifts that operate in factory settings and require a dedicated stand alone Hydrogen Gas infrastructure installation at the site. The dedicated Hydrogen Gas is bottled on site and fed into the fuel cells through a metered system.

     

    Plug Power uses these systems to power up the PEM Cells for the forklifts they sell. Instead of charging a regular set of batteries by plugging them in to an electrical outlet on the main grid, these new systems require a Hydrogen Gas tanker to refuel the main tanks at the distribution area and if there exists any real savings, I believe it is in the reduction of the carbon footprint.

     

    I am not sure if there is any real savings in the of using this system verses regular electric from the grid but I am sure the tax savings to the company on any carbon foot print may be a subsequent value used to determine the expense of installing the Hydrogen Infrastructure.

     

    Fuel Cell, FCEL of the three of the companies that went on a run over the past few trading sessions is actually a real good company, they manufacture stand alone Hydrogen power systems. However to my knowledge, they have no affiliation with PLUG.

     

    Hope this is helpful.
    6 Mar, 10:13 AM Reply Like
  • LYogi
    , contributor
    Comments (1991) | Send Message
     
    so you are a FCEL pumper at the cost of BLDP when BLDP's CEO just reaffirmed that PLUG and BLDP are continuing their partnership on BLDP's conference call.

     

    Nice try.
    6 Mar, 10:20 AM Reply Like
  • just read the instructions
    , contributor
    Comments (102) | Send Message
     
    Ups guy, you mess up with one of the weirdest mob in SA, the Pluggers. They follow you now where ever you go and torture you to death with their endless repeating posts. I remember one of the article that was negative on PLUG and I still get daily updates about weird pluggers still posting their angry comments although this one is already about 3 month old.
    6 Mar, 03:20 PM Reply Like
  • Brian B.
    , contributor
    Comments (41) | Send Message
     
    from my understanding from reading a number of articles on PLUG, while the fuel costs, electric from the grid versus hydrogen, may not have much difference in cost, the big savings is in labor and machine downtime associated with filling up with hydrogen versus swapping out batteries.
    7 Mar, 11:29 AM Reply Like
  • philblock
    , contributor
    Comments (253) | Send Message
     
    This is a perfect case of the baloney and self-serving statements that always prevail when a new product hits the market. Remember all the misstatements about Tesla, and look where they and the stock are now. Smart investors check the facts and ignore the charlatans!
    6 Mar, 10:50 AM Reply Like
  • fidgeroo
    , contributor
    Comments (6) | Send Message
     
    Big effect on the stock price? It shouldn't. PLUG's got $117 million shares outstanding. They've already traded over $20 million shares today. This is what's known as a buying opportumity
    6 Mar, 11:15 AM Reply Like
  • Excel Capital Ventures
    , contributor
    Comments (12) | Send Message
     
    I wouldn't touch PLUG with a barge pole.

     

    Clearly a pump action has been in play leading up to this secondary.

     

    They seem to offer secondaries regularly with no subsequent growth in revenues.
    6 Mar, 01:08 PM Reply Like
  • platts3
    , contributor
    Comments (22) | Send Message
     
    I guess the above 2 nay sayers just didn't buy PLUG for 70cents when it was on offer 6 months ago. Their loss, really sorry!
    6 Mar, 01:23 PM Reply Like
  • just read the instructions
    , contributor
    Comments (102) | Send Message
     
    22 of your comments are about PLUG. Congratulations on qualifying as PLUGGER.
    6 Mar, 03:23 PM Reply Like
  • FCHopeful
    , contributor
    Comments (12) | Send Message
     
    Investing in the FC sector is very speculative and very risky. Long-term investors are excited to see this technology begin to have a significant impact in the marketplace. Longs also understand that a high level of volatility comes with the territory. The only reason to be upset about the current share price of these stocks (FCEL, BLDP and PLUG) is that you shorted the stock and got caught with your pants down. I can't see any other reason for the angry postings.
    6 Mar, 03:37 PM Reply Like
  • GameKing13
    , contributor
    Comments (293) | Send Message
     
    Just read: you are clearly worse. You stalk the Pluggers! Hope you're enjoying
    6 Mar, 03:53 PM Reply Like
  • GameKing13
    , contributor
    Comments (293) | Send Message
     
    Just read: most of your comments are on Plug as well. Stands to wonder why someone keeps commenting on a stock they hate. Quit feeding on others' losses and go play vulture in someone else's backyard. Your negativity isn't welcome
    6 Mar, 03:59 PM Reply Like
  • FCHopeful
    , contributor
    Comments (12) | Send Message
     
    If you are posting in this chain, you are either long or short (or extremely bored). It is pretty easy to figure out who is who. Interesting that the pullback is relatively modest, given the news of another offering by $PLUG. If you are in under $1, you probably aren't sweating it. I remember when $PLUG and $BLDP were trading well above $100 per share in the late 90's before there were any products in the marketplace. I'm not saying I'm going to be a millionaire, but the story has definitely changed in this sector since the late 90's. The next couple of years should be interesting.
    6 Mar, 04:00 PM Reply Like
  • Fotonomad2
    , contributor
    Comments (25) | Send Message
     
    OK, so we've established most folks on this thread have an obvious agenda - as either Longs or Shorts. So I'll just say right off I am short, and consider the current state of the entire Fuel Cell basket of stocks insanely overbought. Let's look at your favorite, the one that started this frenzy of buying: PLUG. Interesting - they just announced an additional stock offer for $ 22.4 million. Who is the sole underwiter for the deal? Cowen. According to marketwatch.com, who is the ONLY analyst following PLUG and offering price target guidance? Cowen. I agree that the Walmart deal is a big boost, and it may be fair to assume additional, significant potential. But PLUG's current valuation is by magnitudes beyond even a sane best-case scenario for the forseeable future. Next, take a look at ZBB, a stock that surged more than 40% yesterday on 50X (yes, fifty times) it's average daily volume. ZZB, like FCEL, has had a sudden and huge run-up, without any serious analysis of its underlying fundamentals. ZZB was forced by the NYSE to issue a 5-to-1 reverse split just 4 months ago, or lose their listing due to not meeting the minimum per-share price cost. Their most recent quarterly report - available for all to see on their web site - was a disaster by nearly any standard metric. Nevertheless, ZZB rocketed yesterday, for no other apparent reason that it is considered a Fuel Cell Stock. If anyone is looking for a cautionary story to this Fuel Cell hype and currently deflating bubble, I suggest charting the performance of all the marijuana / pot related stocks, beginning with the middle of December 2013 until today. This wild speculation in all things "Fuel Cell" is no different - and unless you were lucky enough to get in before the mad rush up, the ONLY way to make money now is to short them on their way down.
    6 Mar, 06:00 PM Reply Like
  • flyerguy1300
    , contributor
    Comments (182) | Send Message
     
    I guess now we all sit around and wait to hear what is said on March 13th. Another pop or drop. Let's see what happens...
    6 Mar, 07:15 PM Reply Like
  • Fotonomad2
    , contributor
    Comments (25) | Send Message
     
    Update and typo correction to my previous post. The other company I mentioned (spelled right the first time, but not after) is ZBB. In all 3 references, it should be ZBB, not ZZB. Maybe the Administrators at SA can fix this before posting?
    6 Mar, 08:55 PM Reply Like
  • toneroner
    , contributor
    Comments (101) | Send Message
     
    < long on the industry with PLUG/ FCEL BLDP. each one for their niche markets and the fact they have survived 2 crashes with a technology that is finally gaining acceptance. Shorts will make money on these surges and longs will make it because of wider acceptance.
    7 Mar, 01:04 AM Reply Like
  • vmello1000
    , contributor
    Comment (1) | Send Message
     
    Love to see PLUG hit $13.00per shear this year !!!!!!!!!!!
    7 Mar, 01:42 AM Reply Like
  • Mike P.
    , contributor
    Comments (78) | Send Message
     
    I do not own PLUG, FCEL, or BLDP currently however I did own them all in the recent past. Congratulations to PLUG Power, they are located in my back yard so of course I had to reach out and contact the company to find out the facts regarding the gains. I interviewed several people at PLUG, sales, Investor Relations and one of the workers in the factory.

     

    As of two weeks ago, my conversation with the Investor Relations department of PLUG stated that they were using another PEM Cell maker, and do not have any renewed contracts with BLDP and are winding down that product integration.

     

    Hope this is helpful.
    7 Mar, 01:23 PM Reply Like
  • mewsic
    , contributor
    Comment (1) | Send Message
     
    Wow, one glance at their latest SEC filing will have all of you longs scared shortless!! (On)going concern!

     

    http://bit.ly/1dI8Ytu
    10 Mar, 10:17 AM Reply Like
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