PLUG stock Archives

PLUG stock

August 24 2020

Plug Power continues its bullish path – here’s everything you need to know.

Plug Power (NASDAQ:PLUG) has made its name on Wallstreet, as investors continue to back the next generation hydrogen cell developer. The stock has surged 368.47% over the past six months, establishing very solid grounds for investor confidence. Plug Power develops hydrogen fuelled cells which power electric motors. The business aims to completely shift the power/transport industry towards zero carbon emissions. PLUG has deployed 35,000 Hydrogen cells and has been officially ranked the largest liquid hydrogen consumer in the world. Plug Power’s mammoth scale and development of the Hydrogen powered market puts its competitors to shame.

Table of Contents
1. Introduction 
2. Expert forecasts on Plug power stock growth
3. Does YIG see value in Plug Power?

What are the experts saying about Plug Power?

Plug has continued to outplay analysts predictions as investors flock towards the hydrogen innovator. The current 12 months predictions remain conservative, with highs pricing at $14 and lows of $9. The current average price target from a pool of 5 expert analysts currently stands at $12.12 according to NASDAQ. These price targets give the everyday investor an insight into the “smart money” consensus. However, price targets continue to change and thus further bullish changes to these targets are something investors will likely rally behind.

With a current conservative forecast for PLUG, we can assume banking institutions are remaining on the sidelines in regards to price targeting. In regards to institutional ownership, roughly 55% of the company is owned by institutions. Institutions such as D. E. Shaw & Co. LP increased their holdings by double (announced EOFYs), suggesting there is “smart money” pouring in.

Does YIG see value in Plug Power?

Before I begin, I am obliged to remind our viewers that this is not financial advice but rather investment commentary from extensive research

Since our last article introducing PLUG as a up and coming stock, PLUG has surged over 70%. Its business model is innovative and holds a strong future as we move towards an all-electric motor era. Plug has cemented their business firmly, with strong supply chains and positive development of the hydrogen cell. YIG sees Plug still in its infancy phase, and will continue to develop its operations on a global scale (opinion not advice).

Q2 Earnings were very positive for Long Term Shareholders, with guidance of 2024 Revenue targets increasing by 20%. PLUG products were moving 30% of the retail food and groceries in the US at the beginning of 2020. Its close relations with Amazon and Walmart have helped PLUG see record billing numbers. What impresses me the most about PLUG is the vertical integration it has done with partner suppliers. Vertical integration continues to be a very integral part of large corporation strategy. This integration will enable PLUG to reduce costs in the long run.

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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

June 24 2020

Plug Power set to surge as investors back a next generation hydrogen fuelled economy

Plug Power Inc. (NASDAQ:PLUG) is set surge for the second day in a row, as investors rally behind the largest hydrogen cell manufacturer of its kind. PLUG announced it has completed its acquisitions of United Hydrogen and Giner ELX. The company has made its ambitions clear, with the end goal producing zero carbon hydrogen solutions. The company has lifted it’s 2024 revenue goal by 20%, to $1.2 Billion. Hydrogen fuelled energy will play a powerful role in the complete transition to clean energy, powering the next generation economy.

Table of Contents 
1. Plug power acquisition summary
2. Can the rally last?
3. Whats in it for long term shareholders?

“Every decision we make is with an eye to the future, not the past. This closely aligns with the efforts that companies like United Hydrogen and Giner ELX have made to secure broad participation in the hydrogen economy, and to achieve the objectives of a clean environment and reduced dependence on foreign oil. We welcome these organizations into the Plug Power family where, as a team, we can accelerate the adoption of low carbon and zero carbon hydrogen on a global scale.”

Acquisition announcement; Plug Power CEO, Andy Marsh 23/6/2020

NASDAQ: PLUG set to surge for the second day in a row – will this rally last?

PLUG is set to open 15% higher this morning according to pre-market movements. Investors rallied yesterday after the announcement of the completed acquisition alongside improved financial forecasts. However, gains may also be explained by speculators looking to turn a quick profit. Some investors have a tendancy to flock to stocks set to rise 10% or greater, before selling off a day or two later. As PLUG continues to find short term investor backing, the likelihood of the stock facing a strong correction increases.

Whats in it for Long term shareholders?

For long term shareholders, the reward for investing in the largest hydrogen cell manufacturer is uncanny. At this point in time, hydrogen power will not come into the “mainstream” for another 15-20 years. I have absolutely no doubt, as PLUG continues to vertically integrate more hydrogen businesses – the interest of investors will continue to rise. At this point in time, there is no company producing hydrogen cells at this magnitude. Therefore, some may link the assumption that if Hydrogen becomes our preferred source of energy, PLUG will benefit the most at a corporate level.

With time being one of the biggest factors in the long term success of PLUG, investors may ask the question : will I be prepared to hold for a significant period of time?

A good example of the risk/reward scenario at this scale would be Tesla. Many bears believed Tesla could crash at $200 as the company was seen to be heavily overvalued at the time. But learning from history, innovative business models can outweigh the business fundamentals. In the Tesla case, the long term risk translated into significant reward.

This begs the question: Will PLUG be the “next greatest” long term investment?

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