Plug Power plunges nearly 8% on secondary offer, short sales


Plug Power (PLUG -7.7%) earlier this morning tripped a Nasdaq short-sale circuit breaker following news late yesterday that it was selling an additional 15M common shares, sending shares nearly 8% lower.

~30% of PLUG’s shares are sold short, according to FactSet.

Shares haven't been helped by a disclosure that the company sees Q1 revenues approximately at or moderately higher than the mid-point of previously announced guidance of $5M-$6M.

Ballard Power (BLDP -0.1%), which supplies PLUG with its fuel cells, and FuelCell Energy (FCEL -1.5%) also are lower.

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Comments (32)
  • GameKing13
    , contributor
    Comments (675) | Send Message
     
    I was gonna sell, just get out of the madness, but the truth is this plunge isn't nearly as bad as I thought it would be.

     

    Only problem is, with the conference call over, it being lukewarm as it was, what good news can possibly be on the way? What catalyst can rocket PLUG back up??
    23 Apr 2014, 11:57 AM Reply Like
  • BestPick
    , contributor
    Comments (235) | Send Message
     
    short sale circuit breaker, if it wasn't this breaker, PLuG would have plunge below $6.
    And so it seems, when breaker release, PLUG would drop further more.
    23 Apr 2014, 02:09 PM Reply Like
  • LYogi
    , contributor
    Comments (3168) | Send Message
     
    Why own PLUG when you can own BLDP? I just don't get it.

     

    Ballard is such a superior company in every facet.
    23 Apr 2014, 11:59 AM Reply Like
  • BestPick
    , contributor
    Comments (235) | Send Message
     
    because PLUG gains more ( and loses more , LOL) ,
    PLUG traded 18.6M at the moment, BLDP? only traded about 1.8M
    That's why
    23 Apr 2014, 02:11 PM Reply Like
  • peteryzhang
    , contributor
    Comments (130) | Send Message
     
    Maybe Plug has done well in PR and presenting the company than Ballard, though Ballard's doing the job behind. Maybe they should merge and consolidate.
    24 Apr 2014, 05:06 AM Reply Like
  • RayeBob
    , contributor
    Comments (183) | Send Message
     
    Long on BLDP. Been trading PLUG, sweeping some proceeds to BLDP and FCEL slowly. With the volatility, just couldn't stand to watch PLUG gains just melt away.
    24 Apr 2014, 11:34 AM Reply Like
  • Weighing Machine
    , contributor
    Comments (902) | Send Message
     
    PLug!
    23 Apr 2014, 12:13 PM Reply Like
  • GameKing13
    , contributor
    Comments (675) | Send Message
     
    Weighing Machine

     

    Why do you troll through all PLUG feeds to scream your short status from the rooftops? Why don't you go Long somewhere else? Or do you live off other peoples losses and misery?
    23 Apr 2014, 12:48 PM Reply Like
  • Weighing Machine
    , contributor
    Comments (902) | Send Message
     
    GK -If you believe hard enough, PLUG will go up irrespective of facts or reason....
    23 Apr 2014, 04:42 PM Reply Like
  • mgbvgolf
    , contributor
    Comments (2) | Send Message
     
    PLUG is out of cash, they need to keep offering new shares, CEO is a joke
    23 Apr 2014, 01:09 PM Reply Like
  • peteryzhang
    , contributor
    Comments (130) | Send Message
     
    I thought that is very bad management practice, even it is not a joke.

     

    But maybe we should view also from another perspective, maybe the CEO is doing fine, considering the 0.14/share year of plug, it almost went bankruptcy, but the CEO turned the game on again, but he should do more than just PR and deals and capital raising, though that maybe his first and urgent priority. And, if you are the CEO, what will you do first? that is an interesting thing to think about. The real testing time will be the down time of Plug, if the CEO packed his bag and leave with some compensation, that will mean it is a joke and even a scam, but if the management stayed, esp. the CEO, we should then give him a little encouragement and hope he can do a good job!

     

    Right now it is very unclear we can trust this management or not, the situation is bad I think for plug, it has some bad practices( for its stock holders, I mean, dilution surely means bad).
    And don't forget that Ballard, Fuel Cell Energy Inc also keeps diluting their shares, since in the whole FUEL CELL industry, they are not making much profit, the only way to get cash is through share diluting...

     

    Hope some of them can solve this problem out of the current hopelessness.
    Somebody in the industry should think out of the box.
    24 Apr 2014, 05:07 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (19361) | Send Message
     
    That chart. One for the bagholders. More dilution drives the SP to homeopathic levels.

     

    PLUG looks like a safe short-selling opportunity indeed.
    23 Apr 2014, 01:37 PM Reply Like
  • leopardtrader
    , contributor
    Comments (3713) | Send Message
     
    Last offering was $5.74. Current should be at or better than this price. That is what makes sense and price action shows it.
    For those yelling on PLUG as a scam or whatever ..the good thing is the judge ( Mr. market) cannot be biased when the decision is taken and there is no appeal here lol
    23 Apr 2014, 01:49 PM Reply Like
  • LaGree
    , contributor
    Comments (63) | Send Message
     
    $5.75 was the low in premarket action. It has been slowly rising ever since. Where are all the short sellers? Let's get this scam stock down to its rightful value so all the suckers (like me) who bought in at $1 can go really crazy and buy more without having our cost basis go to high.
    23 Apr 2014, 01:57 PM Reply Like
  • BestPick
    , contributor
    Comments (235) | Send Message
     
    Remeber this morning, short circuit breaker paused the selling.
    23 Apr 2014, 02:13 PM Reply Like
  • GameKing13
    , contributor
    Comments (675) | Send Message
     
    @forever

     

    I don't Short, can you explain a Short Circuit Breaker?
    23 Apr 2014, 04:00 PM Reply Like
  • Adenauer
    , contributor
    Comments (3) | Send Message
     
    If a stock dips more than 10% in a trading session then you are not able to take a new short position. This is to prevent abusive shorting of a declining stock.
    23 Apr 2014, 06:04 PM Reply Like
  • D00ner
    , contributor
    Comments (44) | Send Message
     
    Hotel California? Down roughly 4%. They stab it with their steeley knives, but they just can't kill the beast !- The Eagles. To the 30+% shorts: this voting machine still seems to hang around; perhaps it is YOU who can check out any time you want, but you can never leave...???
    23 Apr 2014, 04:05 PM Reply Like
  • User 509088
    , contributor
    Comments (1730) | Send Message
     
    it was a slap in the face to have the call and then drop another offering after that.

     

    but... looking at it, the stock dropped at the beginning of the update call, while the warnings (exceptional list!) were being read.

     

    then it went up as the Hyundai jv email hit mailboxes.

     

    the ceo sounded shaken, throughout the call, perhaps from the initial drop.

     

    for all the shorts, they can't seem to beat this beast down below $6. oh well.

     

    there's always tomorrow
    for dreams to come true

     

    like dreaming about being a dentist.
    23 Apr 2014, 04:52 PM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    Old PLUGY, the most overvalued stock that just won't die.. Lol If I was a fundamental expert with all the charts and fancy graphs and kept betting on PLUG to fail I'd be scratching every last hair out of head by now...I gotta friend who does a lot of research told me GRPN was a safe bet.. Billion $ in cash and no debt.. So I bought a 1000 shares.. That ain't been treating me no good.
    23 Apr 2014, 05:44 PM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    Ok so I probably shouldn't be laughing so hard cause I'm down a few bucks this time around. And who knows what will happen tomorrow, but for PLUG to close a@ $6.40 with nothing but bad news.I gotta laugh.
    23 Apr 2014, 05:52 PM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    Hotel California... That's pretty good.
    23 Apr 2014, 06:04 PM Reply Like
  • pewoods1
    , contributor
    Comments (33) | Send Message
     
    Not one person mentioned why PLUG would have opted for the Secondary Offering. Sure people said that they are out of cash but if you read the offering on page 26 it mentions that PLUG has over $60million on hand at the moment (I'd sure love to be "out of cash" with over $60million in the bank)

     

    I wonder has anyone wondered that maybe just maybe the "big deal" Marsh was speaking of on the CC needs more funding to complete? If so, wouldn't the Secondary Offering be a better choice than piling on debt?

     

    We all know or should know that market manipulation happens (which would explain the crazy stock price drop during the beginning DISCLOSURE statement on the recent conference call). So it shouldn't be shocking that the price dropped with the CC news (which was actually GOOD news) right before the Secondary offering was made. --Just like a scene from the movie Wall Street---

     

    A couple positive notes rarely mentioned: Morgan Stanley and Barclay historically don't deal with small deals with no potential of return...So that says something. Also PLUG has been chalking up deal after deal with major clients which of course leads to dealing with other major clients (like Catch 22- need great clients to get great clients...Well PLUG has them already). The best part of it all is that this is all new to PLUG. For those reasons, it looks bright for PLUG but so many people who follow this stock only see the bashing and form opinions based on only one side of the story.
    I would love an SA writer to actually do a bit of digging to look at the other side of PLUG that many people don't get a chance to see...the upside.
    23 Apr 2014, 08:36 PM Reply Like
  • peteryzhang
    , contributor
    Comments (130) | Send Message
     
    At least somebody should go to Plug and dig deeper than us at here, to find some reason maybe, we need more intelligence. :)
    I cannot do that, since I am in China, ;).
    24 Apr 2014, 05:35 AM Reply Like
  • RayeBob
    , contributor
    Comments (183) | Send Message
     
    The best solution to better intelligence if for the company to be more transparent to shareholders. Period. ONE day after the CC they announce the secondary offering. Despite dilution, this one appears to be putting over $100 million to work. Actually could be a big positive. Whether they use it wisely is the next question.
    All that has to be explained, and I'm hypothetical here, is detailed explanation of the need for more capital with ReliON and the Hysco Hyundai JV. If other acquisitions or deals cannot be discussed right now, so be it. Conference call was the supreme venue for such explanation...and they missed the opportunity. Period.
    Transparency can do wonders to nullify a severe negative impact to the share price. Now people shorting are tripping all over themselves and setting off the circuit breaker again, like about 9AM yesterday. Like shooting fish in a barrel.....hope they make lots of money shorting it actually!
    24 Apr 2014, 10:51 AM Reply Like
  • User 9825951
    , contributor
    Comments (30) | Send Message
     
    Agreed. Maybe Mr. Skipper can help us. Or that sly Mr. Fox up in Buffalo (exiled from our world though he may now be).

     

    Most of the analysts publishing about Plug on SA are short, and so by definition they are looking in the rear-view mirror and, with some level of condescension, telling us what we already know. But I am sympathetic to their claim that those taking the long view on Plug need to do a better job spelling out how Plug can contribute to building a transformative, zero-emissions, renewable energy ecosystem.

     

    If Plug bulls cannot articulate that vision with some sophistication, the skeptics indeed have us by the "short" hairs.
    23 Apr 2014, 10:40 PM Reply Like
  • Sameer Advani
    , contributor
    Comments (303) | Send Message
     
    puh leeze

     

    companies don't do secondary offerings unless they think their stock is wildly overvalued. ever heard of the pecking order of corporate finance?

     

    plug is a dog with fleas. get over it and move on. nothing to see here.
    24 Apr 2014, 03:12 AM Reply Like
  • GameKing13
    , contributor
    Comments (675) | Send Message
     
    Sameer

     

    You're the one who's still here.........

     

    Maybe you should move on.
    24 Apr 2014, 07:31 AM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    1of the reasons I'm still here is that the "Nanny Shorts" have made it personal. Always calling me stupid or an uneducated investor or I'm going to lose all my retirement $$$ Ect. Ect.
    24 Apr 2014, 08:11 AM Reply Like
  • cactus jack 65
    , contributor
    Comments (258) | Send Message
     
    Damn! That's what I call a haircut.
    24 Apr 2014, 04:03 PM Reply Like
  • User 9825951
    , contributor
    Comments (30) | Send Message
     
    Couple things. Note WSJ blog post on Plug Power offering.

     

    http://on.wsj.com/1rqdK3P

     

    Also, PLUG removed 4 recent job listings for regional sales managers from its website. Jobs listed now down to 7 from 18 2 weeks ago.

     

    Finally. Companies almost never talk about securities offerings during conference calls. A regulatory protocol exists for communications about offerings. Too much risk of violating securities laws if the offering is addressed informally in a public setting.
    24 Apr 2014, 04:28 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1847) | Send Message
     
    PLUG......Technical update Last advise given was to short the stock at the 8.90 level. The advise to also was given to drop the stop loss to 9.10. Now advise covering half your short position here, 55.35-5.40 and lowering buy stop on balance to 6.10. Over time it is my belief the stock has a quite a bit further to fall. I may take several months more to reach its ultimate bottom so have patience.
    more later.......
    25 Apr, 03:45 PM
    26 Apr 2014, 01:18 PM Reply Like
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