Seeking Alpha

Recent big institutional purchase shows Plug not just a day trader's darling

  • Plug Power (PLUG +17.6%) is on the move again after reporting double-digit revenue growth in Q4 and serving up an optimistic outlook; more than 100M shares traded as of 2 pm, a remarkable figure for a company with only ~106M shares outstanding.
  • While it’s tempting to think of PLUG as simply the latest day-trader’s plaything, WSJ's MoneyBeat notes the company sold $22.4M worth of stock to a single institutional investor earlier this month, suggesting there’s at least one large, well-capitalized investor who’s willing to look past the $540M in net losses PLUG has racked up over the past decade.
  • Recently, PLUG's largest shareholder was Heights Capital Management, and quant hedge funds such as Renaissance Technologies and Two Sigma Investments also were among its major holders.
  • Shares are -22% since Citron's negative report Tuesday but +416% YTD.
Comments (21)
  • gdavidson1731
    , contributor
    Comments (159) | Send Message
     
    Why anyone listens to this Citron crap? This little stock just prove Mr Citron, that you are load of scat.
    13 Mar, 02:43 PM Reply Like
  • atrickpay
    , contributor
    Comments (398) | Send Message
     
    this is misleading,,,that one buyer easily could have sold that when the share price went to $11 for example
    13 Mar, 02:59 PM Reply Like
  • Wall Street Titan
    , contributor
    Comments (283) | Send Message
     
    Could have easily been a hedge fund looking to cash in on a quick trade and cash in on the PLUG retail order mania.
    13 Mar, 03:05 PM Reply Like
  • mattliebs
    , contributor
    Comments (30) | Send Message
     
    Oh yea, the institutional investor is also the only one setting price targets and covering Plug... This company smells.
    13 Mar, 03:07 PM Reply Like
  • atrickpay
    , contributor
    Comments (398) | Send Message
     
    mattliebs: why are you saying the buyer is cowen? i haven't seen the identity of the buyer disclosed
    13 Mar, 04:34 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (623) | Send Message
     
    I am selling the 7 1/2 --8 1/2 March call spread for $0.48 and the 7--6 put spread for $0.25 for a combo of 0.69. My risk in the next 6 days is $0.30. Potential gain is 69 cents. Now that's a low risk trade !
    13 Mar, 03:10 PM Reply Like
  • Hofland Capital
    , contributor
    Comments (55) | Send Message
     
    another SA alpha argument btw Bulls and Bears. Do your own research, look at the companies fundamentals, learn how to do a fair valuation & decide if the stock is or is not overvalued. Citron research has uncovered many frauds, Left has been sued more than once but each case has been dismissed. Rookie investors getting mad when a pump, dumps. Even if Plug has future potential, actual investors look to pay the current fair price, or even a percentage above if the potential is very high. Even if Plug's potential is fair I would never enter a long term position at current prices. All the rooks need to stop complaining and be glad if you made a quick profit off of plug. Grow up
    13 Mar, 03:17 PM Reply Like
  • piyu200594@gmail.com
    , contributor
    Comments (7) | Send Message
     
    I Guess Citron Research Is a Colorado based company, and the research team was high on mariguana to give out a number of $0.50 they might be saying $50 and by mistake kept a decimal point 5
    13 Mar, 04:02 PM Reply Like
  • jordanj77
    , contributor
    Comment (1) | Send Message
     
    You think that "single institutional investor" is still holding their shares? HA!
    13 Mar, 04:02 PM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    Nice rebound (Plug) 3k back in my portfolio. I think most short sellers are a notch or two above vultures...
    13 Mar, 04:02 PM Reply Like
  • mlauritz
    , contributor
    Comments (352) | Send Message
     
    You're right; they are Vultures..

     

    And PLUG is the smelliest dying carcass on the whole NASDAQ... I don't blame them for circling; some are going to get an excellent meal soon!
    14 Mar, 01:24 AM Reply Like
  • linuxjazzz
    , contributor
    Comment (1) | Send Message
     
    Go long on the stock. I told my daughter to to buy it 6 and she just made $2.00 bucks a share. And yes Citron crap!!
    13 Mar, 04:02 PM Reply Like
  • horace169
    , contributor
    Comment (1) | Send Message
     
    sir read the truth,,, this is a great new technology,,, but without all the government help in subsidies,,, and all the other business methods Plug is Plugging in to make it look better then it is,,, not a truthful business model yet,,,,
    13 Mar, 04:02 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (623) | Send Message
     
    Volume today was 1/2 of the high two days. Not a good sign since I don't expect the buyers to continue grinding through stock to the $9 level for another week. In that case she will find her way back towards $7 or lower, especially if the market holds or rallies tomorrow without any further participation from PLUG. Believe me she will not sit still here for long ...she WILL move one way or the other and sharply.
    13 Mar, 04:08 PM Reply Like
  • gdavidson1731
    , contributor
    Comments (159) | Send Message
     
    I think everyone who wanted sell, have already sold. I am taking to long position. I will evaluate at the end of 2014.

     

    See u Then
    13 Mar, 04:35 PM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    More buyers than sellers.. What's next for Andrew short... Maybe pay someone to blow up a forklift...
    13 Mar, 04:55 PM Reply Like
  • stonedBuy
    , contributor
    Comments (2) | Send Message
     
    How many forklifts does the world need?
    13 Mar, 05:14 PM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    Will need to see if it holds. In the short term, if it rises, I expect shortsellers to work to tank it again and then repeat.

     

    PLUG will be volatile until they put in consistent, profitable quarters.
    13 Mar, 07:30 PM Reply Like
  • Sellinpanic
    , contributor
    Comments (592) | Send Message
     
    I have to say all this mania surrounding PLUG (and fuel cell stocks) is absolutely surrealistic. When all other stocks basically follow the general macro economic news and fall down because of concerns in the Ukraine situation and partial fears of slowing Chinese economy, how can only fuel cell stocks prosper? This is not a good sign at all so everyone should understand the meaning; We are witnessing a fuel cell bubble mania growing and bursting, whatever you think about this fuel cell industry, keep your positions at speculative levels, use tight stop-losses and above all keep a tight target price range for a profit/loss levels (e.g. +/-20%). The party on fuel cell hysteria will be over much sooner then anyone can think. This is the dot.com era we are living all over again in fuel cell stocks. All of the signs, only one analyst covering and pumping PLUG, double dilution in a space of few months, never-ending promises on profits (but only widening losses for proof) and repeated future promises for years, there is no real future for fuel cells here. Even Elon Musk said it recently, listen to him, he understands the underlying technology about fuel cells, otherwise he would have taken the fuel cell route for Tesla if that would have served him better, I'm pretty sure about it. This is not going to end well for many investors.

     

    People and Dear Fellow Investors, please I beg you, be careful.
    13 Mar, 07:38 PM Reply Like
  • mlauritz
    , contributor
    Comments (352) | Send Message
     
    It's a real shame the Plug Party Mob will dismiss this as a calculated deception on your part to drop the price; rather than sound advice when playing with a ticking Time Bomb.
    14 Mar, 01:28 AM Reply Like
  • manfredthree
    , contributor
    Comments (1426) | Send Message
     
    All of the bashing comments ignore one most basic question:
    If this is such an obvious no-brainer short, why are so many the shorts bothering to cover ?

     

    A partial potential answer is that an astute fund(s) , recognising that shorts were massively over-extended, bought the issue, then instituted an unrelenting squeeze knowing the shorts simply had not done their homework. That would mathematically enable all the underwritten shares to be doled out over time to the desperate shorts. Proving only that when a piece of candy looks there for the taking, it may just have a blank price tag.
    A second and more likely answer is that PLUG (like TSLA two years ago) realized that shorts were the perfect market for a bigger more expensive float. The shorts here made a major mistake if they believed a company can be blessed with PLUG's accomplishments and not have some wealthy friends and associates.
    Since shorts exist only to profit by contributing to a company's demise, watching them get totally hammered is rewarding to most longs, especially those who have seen the pattern before and learned to sell a bit and option a bit into a squeeze. The sport of winners.
    Our current position is now net free, and we as yet have seen no honest reason to be actually out of the stock. From what we see, a lot of shorts need to be protected from their own greedy and destructive tendencies.
    13 Mar, 09:06 PM Reply Like
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