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I covered Plug Power (NASDAQ:PLUG) back in February, noting the discount to book value but declining to rate it a Buy after significant capex had failed to improve operations to the point of turning
Plug Power: I'm Staying Unplugged From Ammonia
Summary
- Plug Power's recent rally is driven by new partnerships and insider buying, but core financial issues and negative cash flow persist.
- Gross margin improvements and reduced cash burn are positive, yet the company remains far from sustainable profitability or free cash flow.
- The shift toward green ammonia via electrolyzers offers new revenue, but this market is cyclical and unlikely to deliver significant upside.
- Despite trading below book value, ongoing cash burn and dilution risks justify maintaining a Hold rating on PLUG until fundamentals improve.
I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.
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