Plug Power Inc (PLUG)

[uksausage]

Born in Coventry now living in Northern Virginia

Where do you get a $5M overhead as well as SG&A and R&D? I though they were one and the same thing?

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10154092-12855-16551&type=sect&TabIndex=2&dcn=0001003297-14-000434&nav=1&src=Yahoo

With ReliOn purchase I guess $7m is fair enough for that line

last quarter they were effectively break even on gross margin (revenue from h/w, services and research contracts) vs costs of same.
but the hardware was profitable at around 20%

Projections for their business are incredible though as more customers join in and existing ones keep rolling out and may be ask to go faster.

I see hardware margins increasing to c 30% with new deal with Ballard and further volume price discounts from suppliers, service margins should start to ramp up as more customers go on GenKey and buy hydrogen from them, Not exactly sure which services are included in that line (is installation service part of it for instance) If they can get this line profitable then I dont see any problem with them being nett profitable mid next year.

Share price though is so influenced by perception in the market and currently being held down by the short interest. IMHO one more quarter showing the growth they predicted back in December 2013 and the shorts should give up. Then company can be valued on their potential. Rremember fork lifts are just the first market and now that is growing they are about to enter three adjacent markets.

Hence the $50m/qtr could hit by end of next year mid 2016 but would expect them to be nett profitable earlier.

I keep a core investment and have been trying to leverage options (not too successfully) holding November $5 and $7 calls.