Plug Power Inc (PLUG)

[canadajim]

I never said that Plug couldn't do anything right, but the absence of any clear guidance on the 2014 results during the January conference call was stunning because the quarter was already over.

The announcement of the date for reporting results on February 26th during the call, followed by the issuance of a press release on February 24th stating that results would in fact come out on March 17th was sheer incompetence.

They've made me money so far, and I'll remain long.

I too am long on Plug and believe strongly in the product placement in the market, but it has been many quarters and many broken promises on the trail to Plug actually reporting a profit.

I guess you were simply fortunate in the timing of your stock purchase in as much as the stock is worth more now than when you bought it, and for that I would give you most of the credit.

As for what Plug's management owes us an apology for it is not delivering anything close to what they promise.

Here are excerpts and a link to a Bloomberg report on the March 13th 2014 conference call.

Cost reductions and expanding production will help boost gross margin to more than 30 percent in the fourth quarter. That will lead EBITDA of $1.5 million to $3 million for the year, Marsh said on the call. Revenue will more than double to $70 million from $26.6 million in 2013.

http://www.bloomberg.com/news/articles/2014-03-13/plug-power-sees-orders-quadrupling-with-profit-closer-in-2014

In October they reiterated anticipated sales of $75M.

When they finally reported they came in with annual revenue of $64M, with a negative GM for BOTH the quarter and the year (their best product GM was GenDrive which had a +18% GM FOR Q4), and, on the number that really counts, EBITDA for the year of...... wait for it........

-$35.5M on $64M in revenue, which is almost a -$40M or more than -1000% variance from the March guidance. (If you think that things were getting better as the year went on you would be sorely mistaken, Q4 EBITDA was -$12.6M or more than 1/3 of the years total EBITDA loss on revenue of $21M)

These figures are taken from the Plug Power website at

http://www.plugpower.com/Files/Press%20Release%20Tables%20Q4%202014%20V.1%20F.pdf

And the reaction to this repeated display of over promise/under deliver incompetence? A drop in the share price from the giddy days of the October 10th reiterated revenue promise to close of market today of $1.76 per share, or almost 40%, and add to that the target prices of the stock have been slashed by analysts.

Yep, there is more revenue. And the company still manages to lose money on every single dollar of it.