Tomahawk, WI 03/26/2014 (Basicsmedia) – In the past one month, shares of Plug Power Inc (NASDAQ:PLUG) have wildly fluctuated: moving from $4.44 on February 26 to a high of $11.08 on March 11 to $8.32 yesterday. Is there any logic to the movements?

Worrisome Financial Outlook

Plug posted FY2013 revenues of $26.6 million and is making rosy predictions about the future based on the orders it has recently received to supply fuel cells to Wal-Mart Stores, Inc. (NYSE:WMT). It has also reported new orders from the likes of The Kroger Co. (NYSE:KR), and “global automakers” like BMW and Mercedes.

It also reported FY2013 net loss amounting to $62.7 million while predicting that FY2014 orders will total more than $150 million which will be four times its total for FY2013. Plug also has $500 million in net losses accumulated over the last decade.

Deal Or No Deal?

The CEO, Andy Marsh, announced yesterday that he will be revealing the details of a deal with a “global automaker” in two to three weeks. This is exactly how to keep a speculative rally going by adding fuel to it. Of course, Volkswagen, one of those global automakers, swiftly scotched rumors that Plug had signed any deal with it. A company spokesperson said that they are working on fuel cells in their own research facilities back in Germany. So, could this new “deal” be with BMW or Mercedes? Well, we’ll find out soon enough.


The key thing to remember for long-term investors and those who want to “own” the business by investing in its stock is that Plug has no innovations to its credit, no patents and no unique technology. Like Andrew Left of Citron Research put it, it has “no demand, no brand equity” and no analyst support either.

Mr. Left even alleged that the Plug Power Inc (NASDAQ:PLUG) management has been “actively deceiving the marketplace.”

That’s not a good sign if you are looking at getting into a stock for the long term. Let’s remember: not every company associated with batteries or fuel cells is a Tesla Motors Inc (NASDAQ:TSLA).

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