![]() ![]() The current market cap of PLUG is $690m versus the $487m being reported by Yahoo Finance (stock trading at $4.75 at the time of this report). We think investors do not realize the true number of shares outstanding after accounting for all of the warrants that have been given away in conjunction with the various equity raises. If management wasn't willing to buy the stock at $0.12 per share, should you be willing to buy it at $4.75?įact #3: PLUG is currently trading at a 10-yr high It is our experience that truly undervalued small cap companies needing capital will often see insiders personally invest in the equity raise. It should be noted that none of the insiders personally participated in any of these equity raises. The fact that company insiders were willing to sell stock at $0.62 per share less than four months ago should be a major red flag for investors owning the stock at these levels. PLUG took things to the next level in 2013 with 53m shares being issued at prices ranging from $0.12 - $0.62 per share. PLUG has only been able to keep the lights on for all of these years by issuing massive amounts of equity. We think most investors caught up in the current euphoria have very little knowledge of PLUG's history (see Fact #8). The equity raise on had to be done at a -52% discount to the prevailing stock price.įact #2: PLUG sold equity at price of $0.12, $0.24, and $0.62 per share in the past 12 months We think it is extremely unlikely the company will be able to find an equity infusion at a price level anywhere near where the stock is currently trading given the previous price and discounts needed for PLUG's prior equity raises. This gives the company approximately 1.8 months of cash remaining which means the company will need to raise capital by mid-February. At the end of Q4 (12/31/13), we estimate PLUG will have ~$4m of cash left. ![]() As of 9/30/13, PLUG had $11m of cash remaining. The company is not profitable (see Fiction #2) and burns about $7m of cash each quarter. Our report provides a detailed look at the true fundamentals of PLUG and separates the facts from the hyped-up fiction.įact #1: PLUG needs to raise equity in Q1 2014ĭespite the wild surge in the stock price and the always-optimistic CEO, PLUG is in a very dire financial situation. The market may be manic in the short term but ultimately fundamentals matter and stocks converge to their intrinsic values. To be fair, it seems to have worked with the stock up almost +500% in the past three months. There has been a lot of shoddy analysis and hyping of Plug Power over the past several weeks. Should I sell PLUG? A Decision Tree Guide This report aims to separate the facts from the fiction so investors can make an informed decision. Having followed this company since 1999, we are uniquely positioned to weigh in on the recent move and give a detailed assessment of the company. There has been a remarkable surge in stock price of Plug Power ( NASDAQ: PLUG) over the past few weeks. ![]()
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