Tomahawk, WI 12/10/2013 (BasicsMedia) – Plug Power Inc (NASDAQ:PLUG) had a brilliant performance last week upon scoring triple digits, however, their stocks were dancing to a different tune by Monday. By mid-morning, they had shed 14 percent to a trading volume of $1.77. This dip made this fuel-cell developer one of the biggest decliners. Prior to this decline, the business had increased by 180 percent during the 5 trading days. The company was optimistic with the company being confident of turning a profit in 2014.

Plug Power Inc (NASDAQ:PLUG) ratings leave a lot to be desired

A score of D- was awarded to this cell developing company by TheStreet ratings team. The team gave their reasons stating that they noted several weaknesses, which have had negative implications on their stocks and overall performance. These weaknesses are spread out in multiple areas such as the notable poor return on equity and a deteriorating net income.

Getting into the nitty gritty, change in net income has changed significantly from what was experienced in the same quarter last year when compared to performances by Electric Equipment Industry and S&P 500. Net income for Plug Power Inc (NASDAQ:PLUG) has decreased by 54 percent, falling from $10.33 to $15.90 million when compared to the results for last year in the same quarter.

Return on equity followed the same trend compared to the same quarter one year ago. Sadly, this portrays a major weakness within this corporation and managers must look into this immediately to increase investor confidence. When its figures on return on equity are compared to other companies in the same industry, Plug Power Inc (NASDAQ:PLUG) is trailing by far. Their (ROE) is yet to meet the industry’s average which further explains why they got a rating of D-.

Its debt to equity ratio was 0.85 which was low, but slightly high compared to what was recorded as the industry’s average. What this basically implies is that debt level management need to be better managed come the New Year. There was a ray of hope with PLUG’s quick ratio remaining sturdy at 1.21.

Net operating cash showed an improvement of 1.82 percent, this was compared to the same quarter’s performance the previous year. However, this increase in cash flow still put this company below the industry’s average growth rate which was 19.68 percent.

Plug set to make a comeback

Company SEO Andrew J. Marsh said a deal is underway to sign 3 to 6 sites and this would translate to 750 to 1500 units. The units are to be deployed over a period of 2 years and the deal includes a 5 year service agreements which would provide recurring revenue stream for hydrogen and hydrogen infrastructure. This turnkey venture is expected to gunner about $8 to $12 million for Plug Power Inc (NASDAQ:PLUG) and this could be the company’s saving grace.

In the words of PLUG’s president and CEO Andy marsh, “PLUG is like a phoenix rising”, according to him, the company has been taking off and the public can only wait to see how far it will soar.

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