Plug Power -4%, article says unlikely DCF analysis implies $2.50 share price

|About: Plug Power, Inc. (PLUG)|By:, SA News Editor

Early gains turn to sharp losses after Kerrisdale Capital, which Notable Calls labels a "smart money short," is out with a negative article on Plug Power (PLUG -3.8%).

Kerrisdale believes PLUG is worth less than $2.50/share even in a best-case discounted cash flow scenario where it achieves its $70M revenue target in 2014, quadruples its sales over an eight-year period, and achieves a long-term gross profit target of 32%; in the much more likely scenario that PLUG disappoints investors and misses its long-term guidance targets, PLUG shares are worth much less.

Evidence strongly suggests that fuel cells will remain a niche solution in the warehouse, the writer adds, a criticism leveled earlier by a top GE executive.