Here is an excellent post copied from the Yahoo PLUG message board.
Plug Power Inc. Message Board
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PLUG POWER’S BEAR RAID/BUSINESS UPDATE!
As those reading this Plug Power Message Board have varying understandings of this company, those wishing to update their Plug Power (PP) research should include the Jan. 28th Conference Call by CEO Andy Marsh and new CFO Paul Middleton at 7 a.m. PT (toll-free at 877-407-8291; webcast access at Plug Power website).
Full Disclosure: As a retail investor for over a quarter-century, I’ve learned, sometimes the hard way, what “New York Times” bestselling author Michael Lewis (who worked from 1984-88 for Salomon Bros. in London and on Wall Street) revealed in his 2014 book, “Flash Boys: A Wall Street Revolt”: "The U.S. Stock Market, at bottom, is rigged. The icon of global capitalism is a fraud." During PLUG’s 2014 volatility, I repeatedly traded it profitably, eventually realizing that the three-fourths of shareholders long this stock have been caught in an ongoing, illegal bear raid which began last March.
This discovery was emphasized while I read a 2014 book by another “New York Times” bestselling author, preeminent “Rolling Stone” journalist Matt Taibbi, in which he talked about (p. 248) “other legendary bear-raid stories involving companies like Overstock, Dendreon, Afinsa, Biovail, and a Canadian company, Fairfax Insurance, which U.S. hedge-fund billionaires Dan Loeb (Third Point), Stevie Cohen (SAC Capital) and Jim Chanos (Kynikos)—self-described as the “Masters of the Universe”—along with centimillionaire Adam Sender, who cut his teeth at SAC Capital before founding Exis Capital, collectively placed a massive short bet against Fairfax, attacking it with naked short-selling (a type of financial counterfeiting such short-sellers use to artificially depress the stock price of a target company), as well as with criminal efforts to destroy the company and its CEO.
Fortunately, they failed (Fairfax later sued its short-sellers for $8 billion in damages), just as I predict the short-sellers who’ve long been illegally manipulating the share price of PLUG will fail. My only significant previous post on this PLUG Board was last Sept. 4th, entitled “PLUG LONGS: DENY SHORTS YOUR SHARES!” (which received 41 'Thumbs Up,' 14 ‘Down,' and well over 200 ‘Replies'). This January 14th, I wrote Plug Power CEO Andy Marsh, Chairman George McNamee, and Co-Founder Larry Garberding about my concerns, including this:
"Dear CEO Andy Marsh--As a significant retail investor in Plug Power, I understand a bit of what’s necessary to run a business profitably, having grown up and worked in a newspaper-publishing family before founding my own global business for the past 35 years. Having become a globally-published author in 1986, we writers have a special responsibility to blow the whistle when we see illegal bear raids of the magnitude that some among those controlling the significant short interest in PLUG appear to have engineered for many months of 2014, continuing to this day. The SEC has done nothing about this, just as it did nothing about the massive bear raid on a Canada’s Fairfax Insurance.
"In-depth details of that illegal bear raid take up part of Chapter 6 in Matt Taibbi’s superb 2014 book—“The Divide: American Injustice In The Age Of The Wealth Gap.” Because he states the SEC did nothing about this massive, illegal attempt to destroy a Canadian company, and because it’s clear to me that PLUG has long been the target of an illegal, short-interest bear raid that’s destroyed countless millions of dollars of PLUG longs, I’ve copied SEC Chair Mary Jo White on this, in hopes she’ll finally stop it."
Also on Jan. 14th, I submitted an official "Complaint about the Ongoing Bear Raid of Plug Power's PLUG Stock (Manipulation of a security)” to the Division of Enforcement of the United States Securities and Exchange Commission [TCR successfully submitted same date; reference no. TCR142127(confidential)], which replied: "Thank you for contacting the Division of Enforcement of the United States Securities and Exchange Commission. This automated response confirms that your submission has been received successfully.”
Jan. 22nd, I received this additional response from the SEC: “Thank you for your email dated Jan. 14, 2015, to U.S. Securities and Exchange Commission (SEC) Chair Mary Jo White regarding Plug Power, Inc. Your email was forwarded to the SEC’s Office of Investor Education and Advocacy (OIEA) for response. . . .We keep records of the correspondence we receive in a searchable database that SEC staff may make use of in inspections, examinations, and investigations. . . .Sincerely, Don Evans, Branch Chief, ref: _OOD30JxQy._500(confidential)."
In my letter to CEO Marsh, I also wrote: "Interestingly, Andy, after the end of September, 2014, even though Plug Power’s Q3 Earnings Report/CC would not be until Nov. 12th, you announced on Oct. 10th that Plug Power "closed out the third quarter of 2014 with 857 GenDrive units shipped to material-handling customers in North America. This equates to a 450% increase, compared to the third quarter of 2013, when 155 GenDrive units were shipped.” That “857" figure was used by Wall Street analysts to set their expectations for the coming Q3 ER, but you unconscionably failed to then tell Wall Street and long investors what you ALSO knew on Oct. 10th—that more than $5 million worth of those GenDrive units were not paid for in that quarter (check reportedly received 3 days into Q4).
"By not, Andy, also announcing that earnings shortfall, you led Wall Street analysts to set Q3 earnings estimates higher than PLUG could meet, exacerbating the continuing bear raid’s loss on PLUG (from $4.44/share Oct. 10th). More recently, you’ve stated that you intend to make a January statement before the Q4 ER/CC in mid-February. Highly-successful companies such as Apple and Amazon NEVER tell Wall Street what they’ve shipped before their Earnings Reports, so why do you? Amazon, by the way, has yet to show a profit after nearly 20 years in business, not unlike Plug Power’s earnings record. And, one of the world’s most profitable companies, Apple, has always downplayed earnings expectations, which allows them to most often beat Wall Street analysts’ expectations, enhancing their stock’s share price. Why does Plug Power not do the same as these colossal business successes, in this regard?
"You also said on Oct. 10th, Andy: “The company expects to ship between 900 and 1,000 GenDrive units in Q4/14.” Thus, if you still plan this January ‘update,’ please do NOT make the same mistake you made last Quarter, perhaps causing yet another loss to long-suffering shareholders long Plug Power’s stock—a stock we bought because we believe in your products’ future potential. It goes without saying that such continuing bear-raid losses are adversely affecting your own 243,553 shares, or the 256,148 shares of Plug Power's Chairman and Co-Founder George C. McNamee. In conclusion, Andy, it’s good to see you’re now ranked among the "Top Small Cap CEOs" by ExecRank, so as you've signed off in your online President’s Message. . ."Power Ahead"! Thank you for listening to my request, as a long and strong retail shareholder. Respectfully, (confidential)"
CONUNDRUM: How did PLUG stock fall more than 52% in the last six months, while the U.S. Stock Market was achieving record highs? As all know, U.S. Feds do arrest a handful of Wall Street thieves. Billionaire Bernie Madoff was sentenced to 150 years in prison for “losing" $50 billion of his investor’s money. Billionaire Raj Rajaratnam was jailed two years for insider trading. Eight employees of billionaire Stevie Cohen’s SAC Capital pleaded guilty or were convicted at trial for insider trading--at a firm once the envy of Wall Street for its consistently stellar returns--while Cohen, himself, avoided criminal charges, although SAC as an institution pleaded guilty, paid a record $1.8 billion settlement, and was forced to shut down its business of managing money for outside investors. Those long running an illegal bear raid on PLUG may or may not escape justice. However, they can’t keep their target's revenue from growing.
Having watched Plug Power’s revenue go from $26.6M in 2013 to between $70-75M in 2014, CEO Marsh prefaced his Jan. 28th Business Update by telling the “Albany Business Review” on Jan. 6th that he expects this year's business to nearly double: "In 2015, we're publicly where the company expects to be--on track to reach up to $130 million in revenue this year,” saying Plug Power is focusing much of its energy in 2015 on meeting its deployment numbers for the company's (1) Material-Handling Market, adding that the fuel cells used to power forklift trucks in large warehouses for customers like Walmart and Kroger represent more than 80% of the company's revenue.
Personally, I've invested in PLUG power because of its potential, as explained on the Plug Power (PP) site: "Plug Power has revolutionized the Material-Handling industry with cost-effective power solutions that increase productivity, lower operating costs, and reduce carbon footprints. Plug Power’s GenDrive® fuel cell is a superior alternative to lead-acid batteries for electric lift trucks in the $20 billion global Material Handling Market."
On the site's navigation bar, clicking on ‘Expansion’ lists the additional markets PP’s now pursuing: (2) Ground Support Equipment Market; (3) Electric Vehicle Range Extenders Market; (4) Transportation Refrigeration Unit Market, and (5) Hydrogen Fuel Market, about which CEO Marsh said Jan. 6th: "You'll continue to see, during the coming year, the company become more engaged with hydrogen,” noting that hydrogen is critical in expanding the fuel-cell market, adding that Plug Power will aim to make hydrogen more readily available in 2015. (A partnership that closed last year with Praxair, a Connecticut-based hydrogen producer, enhances that transition.)
CHECKMATE ON BEAR-RAIDING SHORTS: Regarding why I predict the failure of this ongoing, illegal bear raid which some among PLUG's substantial short interest have used since last March to artificially depress Plug Power's share price, I see the checkmate on these white-collar criminals who’ve stolen countless millions from the three-fourths of PLUG investors who are long this stock, resulting from one glaring miscalculation: They cannot control Plug Power’s impressive, growing list of customers.
“Fortune 100” companies are the leaders of the American economy. Sooner or later, all become known by the company they keep, so no doubt Home Depot, the world's largest home improvement specialty retailer, was inspired to help revolutionize the $20 billion global, material-handling industry by other “Fortune 100” Plug Power customers, including Walmart, ranked 1st in revenue; Kroger, 22nd; Procter & Gamble, 35th; CVS, 93rd; Lowe’s, 94th; Sysco, 95th, and Coca-Cola, 99th. As the newest Plug Power customer, Home Depot--ranked 18th—has similarly signed on to use Plug Power’s cost-effective power solutions to increase productivity, decrease operating costs, and reduce its carbon footprint.
Plug Power fuel cells will power the forklift fleet at Home Depot’s newest Distribution Center—its 1.6-million-square-foot facility on 157 acres in Wood County, Ohio (Luckey, OH, near Toledo—a $100-million-plus investment which will be used to support Home Depot's on-line business starting in this year’s first quarter, located close to I-75 and the Ohio Turnpike, as well as to freight rail service on Norfolk /Southern and CSX rail lines, in northwest Ohio where many big U.S. companies already have Distribution Centers, such as Best Buy, Calphalon, FedEx, Kohl’s, Lowe’s, Menards, UPS and Walgreens). Home Depot, itself, has Distribution Centers in more than 90 U.S. locations, shipping products to more than 2000 stores across the country.
According to “Toledo News Now,” Home Depot’s newest Distribution Center is expected to hire 125 full-time and 30 part-time positions. K and K Technical Group, Inc., one of the best staffing firms for the automotive industry today (Plug clients also include BMW, Daimler/USA, Honda, Mercedes-Benz and Volkswagen), has advertised a “field-service job posting for a fuel-cell technician in Luckey, Ohio." Job description:
“The Field Service Technician will support fuel-cell products currently installed in electric lift trucks, including performing preventative maintenance and resolving breakdowns. May require troubleshooting and maintenance of high-pressure hydrogen storage, delivery and fueling systems. May include maintaining ongoing communication with customer personnel hydrogen suppliers regarding aftermarket support of fuel cells. Technician must have a minimum of five years of proven experience in mechanical and electrical troubleshooting and repair, and must provide own standard set of tools—specific fuel-cell tools to be provided by Plug Power."
Again, the biggest “Fortune 100” firm which PLUG’s illegal shorts can’t control is Walmart. In February, 2014, Plug Power received a milestone GenKey order from Walmart to roll out 1,783 GenDrive fuel cells in the forklift fleets at six of its Distribution Centers (DC) across North America. On July 29th, Plug Power received a follow-on Walmart order to add the GenKey hydrogen fuel-cell power solution to a seventh DC.
Jan. 14th, Raymond James analyst Pavel Molchanov weighed in on Plug Power after hosting meetings with the company's executives. His highlights: "Walmart onboard with forklifts. After years of delays in hitting financial targets, Plug Power got on the proverbial ‘map' (followed by an epic short squeeze) with a major order from Walmart in February of 2014 for GenDrive fuel cells. The fuel cells are being deployed at Walmart's North American Distribution Centers; another eight-to-ten expected in 2015, replacing lead-acid batteries in electric lift-truck fleets. The addressable market ranges from $5 billion (currently servable, North America-only) to $40 billion (global TAM). Material-handling customers—i.e., forklifts and related equipment for warehouses and industrial plants—have long been at the heart of Plug Power's go-to-market strategy, and an implicit 'seal of approval' by the world's top retail chain played a key role in reshaping how investors perceive Plug Power."
Walmart, with 158 Distribution Centers, this year intends to doubling down on its Plug Power fuel-cell conversions at its North American Distribution Centers—a reality check which virtually NO major company distributing goods will ignore, including all joining Walmart in Plug Power’s impressively growing customer lineup: Ace Hardware, Associated Wholesale Grocers, BMW Manufacturing Co., Bridgestone Firestone, Central Grocers, Coca-Cola Consolidated, Coca-Cola Refreshments USA, CVS, Daimler (USA), FedEx Freight, GENCO Kimberly-Clark, Golden State Foods, Honda, Kroger Co., Lowe’s, Mercedes-Benz, Nestlé Waters, Newark Farmers Market, Procter & Gamble, Stihl, Sysco, United Natural Foods (UNFI), Volkswagen, Wegmans, Whole Foods, WinCo Foods, plus Plug Power entered (7.31.14) a joint venture partnership with South Korea’s Hyundai Hysco Co. Ltd. to develop and sell hydrogen fuel cells in Asia.
Finally, illegal shorts long manipulating the PLUG share price should also not forget that Plug Power tripled its sales staff in 2014 to better market GenKey--Plug Power’s first all-inclusive product for material-handling sites. . .a turnkey solution making the transition to fuel-cell power seamless. Plug Power has combined all necessary hydrogen-based, fuel-cell elements to provide a ‘one-stop-shopping’ option for customers. With Walmart and Home Depot leading the way, material-handling customers across North America are making the switch to GenDrive, and Plug Power’s GenKey solution links together everything any customer needs for a smooth transition: GenDrive hydrogen fuel-cell units; GenFuel hydrogen infrastructure, and GenCare customer-service contracts.
Who was it said: "Be not deceived, for whatsoever a man soweth, that shall he also reap?” Those are at least familiar words to those calling themself a Christian, Muslim or Jew—just as are the words honored by those calling themself a Buddhist, Hindu or Jain--their immutable Law of Cause and Effect (“karma" in Sanskrit).
P.S. For anyone curious, my only other significant post on this PP Message Board was on Sept. 4, 2014: “PLUG LONGS: DENY SHORTS YOUR SHARES! If you hold a long position in PLUG and don't want the shorts to continue to borrow your shares, just enter a GTC (“Good till Cancelled”) or at E-Trade, GT 60 (“Good for 60 Days”) sell Limit Order at a high price (say, $10.00). This will commit your long shares and make them unavailable for shorting. If your shares were already borrowed, the broker will issue a forced buy-in notice to the shorts, and they will have to cover."
