Seeking Alpha

Plug Power acquires fuel cell developer ReliOn for $4M, shares +4% AH

  • Plug Power (PLUG) +4.1% AH after it expands into the backup fuel cell market with its acquisition of ReliOn, a developer of hydrogen fuel cell stack technology and fuel cell systems, for ~$4M in stock.
  • PLUG expects the deal to be accretive to earnings in 2015 and to generate ~$1M in EBITDA loss in 2014, while saying it continues to expect to turn a profit this year.
  • PLUG says ReliOn has had AT&T, Sprint and Verizon as customers.
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Comments (18)
  • Sundaymorning8
    , contributor
    Comments (34) | Send Message
     
    distributive backup power could prove to be a very lucrative application for fuel cells. A great opportunity for PLUG to expand it's business outside the material handling sector.
    2 Apr 2014, 06:35 PM Reply Like
  • toneroner
    , contributor
    Comments (214) | Send Message
     
    Great news for $PLUG and articles that cite the lack of IP on stacks will have one less bone to gnaw on. More fireworks for Thursday
    2 Apr 2014, 07:05 PM Reply Like
  • mlauritz
    , contributor
    Comments (354) | Send Message
     
    How I'm reading this = another 500k+ Shares added to PLUG's Outstanding Share count... ($4M paid in Shares ; assuming ~$7.50 PPS)

     

    Although True Hard-Core PLUG investors aren't afraid of Dilution! This is simply Bashing by those darn shorts and their Math mumbo-jumbo....
    2 Apr 2014, 07:40 PM Reply Like
  • RASTA
    , contributor
    Comments (59) | Send Message
     
    Seller took the stock though, didn't they!!!!!Rasta
    3 Apr 2014, 08:01 AM Reply Like
  • D00ner
    , contributor
    Comments (30) | Send Message
     
    Interesting that the selling company ReliOn is taking stock and not cash... perhaps they are true believers? But Nah, what would they know about the industry potential ? They are going LONG the stock with this move.
    2 Apr 2014, 07:47 PM Reply Like
  • mlauritz
    , contributor
    Comments (354) | Send Message
     
    Not surprising at all; PLUG doesn't have $4M in cash to spare... Before this Secondary Stock Offering Spree PLUG was down to $5M in Cash TOTAL! (see the 10k filed this week)

     

    Paying in (Bubble-valued) Stock is like funny-money (i.e. doesn't cost Marsh anything); look at what Zuckerberg is doing with FB's...
    2 Apr 2014, 07:58 PM Reply Like
  • jeepnsam
    , contributor
    Comments (52) | Send Message
     
    "HAS HAD" being the key words here
    2 Apr 2014, 08:50 PM Reply Like
  • mlauritz
    , contributor
    Comments (354) | Send Message
     
    But now their PLUG's customers!!!!

     

    (To Burn Cash & Accelerate Losses on...)
    2 Apr 2014, 09:09 PM Reply Like
  • Weighing Machine
    , contributor
    Comments (781) | Send Message
     
    Plug spends $4 mn in stock and it's market cap shoots up $50 million after hours...super rational. This is a terrific short here. Write that down.
    2 Apr 2014, 08:54 PM Reply Like
  • mlauritz
    , contributor
    Comments (354) | Send Message
     
    Shoots up $50M AH; on top of it shooting up $50M+ yesterday on No News...

     

    I'm to the point now that I believe if Marsh called a Press Conference tomorrow and simply reiterated the same WalMart deal again; that alone would add another 50M+... Scary how Herd Mentality and lack of DD can create such an abomination...
    2 Apr 2014, 09:07 PM Reply Like
  • User 509088
    , contributor
    Comments (1227) | Send Message
     
    it's good for integrators to integrate.

     

    weighing machine makes a good point- plug spent $4 mil in stock and got a $50 million acquisition with it.

     

    what's that, math magi, 12.5 times?

     

    it's not dilution if each share issued brings in the value of 12.5 shares to the corporate treasury. it's value creation. I'd say about $46 million worth, after deducting the price of admission.
    2 Apr 2014, 09:37 PM Reply Like
  • GameKing13
    , contributor
    Comments (482) | Send Message
     
    Mlauritz: I think it's time you wrote your own article on PLUG instead of trashing everyone else's comments on it for months
    2 Apr 2014, 09:55 PM Reply Like
  • mlauritz
    , contributor
    Comments (354) | Send Message
     
    What would be the point? I couldn't top the last article & all the Longs are hard-set in their ways. (& the Shorts already know what's-up)

     

    Someday I might start contributing here; Just trying to restore my faith in the Average Investor :(
    2 Apr 2014, 11:15 PM Reply Like
  • brp15
    , contributor
    Comments (29) | Send Message
     
    When a company pays for deals in all stock, they're saying "our stock is overvalued". Paying $4m using a massively overvalued currency means they purchased assets worth what? Acquisitions to cloud the accounting is all part of the plan... I'm also finding it hard to maintain said faith when reading the comment sections for PLUG articles.
    3 Apr 2014, 09:04 AM Reply Like
  • EquityTrader1975
    , contributor
    Comments (390) | Send Message
     
    @brp15 you are dead wrong when a company except stock as payment, its says the stock is undervalued, otherwise they would not except worthless stock as payment, not sure why you are on here posting?
    3 Apr 2014, 11:52 AM Reply Like
  • wigit5
    , contributor
    Comments (4216) | Send Message
     
    I think the answer is it depends... either the company who is accepting stock is doing its DD or its not... the execs of the company being bought dont give two hoots about it because they are likely out of the situation selling any and all stock asap. Golden parachutes for all of them....

     

    So part of me (most if I'm honest) leans towards brp15 thesis... however I'm still long $PLUG as a spec green tech play.
    3 Apr 2014, 12:45 PM Reply Like
  • brp15
    , contributor
    Comments (29) | Send Message
     
    I believe you mean "accept" as opposed to "except"... The company being bought out would "except" the stock as payment as an alternative to going out of business, wouldn't you?
    3 Apr 2014, 04:23 PM Reply Like
  • EquityTrader1975
    , contributor
    Comments (390) | Send Message
     
    @Brp15 who said are they were going under, could have asked for cash even a small amount, if they felt it had no value,
    7 Apr 2014, 09:37 AM Reply Like
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