Monday, April 10, 2017 10:27:09 AM
By Jarrod Wesson / in Energy & Solar, Momentum & Growth, Momentum Stocks, Stocks / on Thursday, 06 Apr 2017 09:58 AM / 0 Comment / 837 views
https://www.insiderfinancial.com/plug-power-inc-nasdaqplug-joins-forces-with-amazon-com-inc-nasdaqamzn/120833/
Plug Power Inc. (NASDAQ:PLUG) (“Plug”), the energy solutions provider, took off this week from $1.28 to $2.25. On April 3, 2017, we published an article, when the share price was as of $1.5. You can read it here.
The readers who bought shares at that time have made 50% return in just a few days. In this piece, we will give you more information about it. But, first of all, take a look at the fantastic jump:
What happened?
According to what the company said on Wednesday, Amazon.com Inc (NASDAQ:AMZN) had acquired the right to purchase 23% of Plug. In addition, the company reported that according to an agreement signed, the online retailer will utilize Plug Power fuel cells and hydrogen technology in its fulfillment of network.
The CEO of Plug Power celebrated the news using the following words:
This agreement is a tremendous opportunity for Plug Power to further innovate and grow while helping to support the work Amazon does to pick, pack and ship customer orders, our hydrogen fuel cell technology, comprehensive service network, and commitment to providing cost-savings for customers has enabled Plug Power to become a trusted partner to many in the industry and we are excited to begin working with Amazon. “Source
Plug Power has given Amazon some warrants to acquire shares of Plug, similar to those that we noted in our previous article. The terms of the deal include 55,286,696 of Plug Power’s common shares at $1.1893 per share, which is the exercise price. In order to vest the warrants, Amazon will have to pay a total of $600 million to Plug.
Something was going on and we noted it
In our previous article, we noted for our readers that it was not normal that the company missed the EPS expectations, but the share price rose. We remarked that this was a bullish sign:
“Turning to what stock analysts expected, the EPS released was -$0.11, which misses by -$0.05 what the market expected. The share price did not fall due to this number, which we see as a bullish sign.
The share price of PLUG climbed on March, 2017, right after the company released its Q4 2016 numbers. Although the company did not obtain better earnings per share than what analysts expected, investors still bid the company up. This fact may be seen by some market analysts as a bullish sign”. Source
Did some market participants know before the market that Amazon was negotiating a deal with the company? We cannot be sure about it. The most important thing that we need to learn here is that the investors need to check every single detail in order to understand what was going on with the company. In this case, shares started to rise even before the news was out.
What now?
We encourage you to read carefully the news about this company, as in the same press release it was commented that Amazon and Plug will begin working together on “technology collaboration, exploring the expansion of applications for Plug Power’s line of ProGen fuel cell engines”.
Conclusion
The fact that market participants remained bullish on this name even when the company was not delivering good numbers, which made us write a piece about his company. We were right; the company delivered very good news after a few days. If you have invested when we published it, you must have made approximately a 50% return on investment. By joining forces with Amazon, there could be a lot more gains to be had. We believe this news is a real game changer for Plug Power and the start of a new bull run for the company’s shares.
Recent PLUG News
- Plug Signs MOU with Allied Green Ammonia for 3GW of Electrolyzer Supply at World-Class Green Ammonia Production Facility • GlobeNewswire Inc. • 05/03/2024 11:00:00 AM
- The Gross Law Firm Notifies Plug Power Inc. Investors of a Class Action Lawsuit and Upcoming Deadline - PLUG • PR Newswire (US) • 05/03/2024 09:45:00 AM
- Plug Continues to Expand Cryogenic Sales with Multiple Customer Agreements and International Expansion • GlobeNewswire Inc. • 05/02/2024 11:00:00 AM
- Plug Secures First International PEM Electrolyzer Certification in Korea • GlobeNewswire Inc. • 05/01/2024 11:00:00 AM
- Plug to Announce 2024 First Quarter Results • GlobeNewswire Inc. • 04/30/2024 11:00:00 AM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Plug Power Inc.(PLUG) Shareholders • PR Newswire (US) • 04/26/2024 09:45:00 AM
- Plug Signs Additional BEDP Contracts for a Total of 4.5GW of Electrolyzers Across Europe and the United States • GlobeNewswire Inc. • 04/25/2024 11:00:00 AM
- Plug Continues to Make Substantial Advancement in Hydrogen Generation Buildout • GlobeNewswire Inc. • 04/23/2024 11:00:00 AM
- May 21, 2024 Deadline: Contact The Gross Law Firm to Join Class Action Suit Against PLUG • PR Newswire (US) • 04/19/2024 10:20:00 AM
- May 21, 2024 Deadline: Contact The Gross Law Firm to Join Class Action Suit Against PLUG • PR Newswire (US) • 04/16/2024 10:15:00 AM
- Shareholders that lost money on Plug Power Inc.(PLUG) Urged to Join Class Action - Contact The Gross Law Firm to Learn More • PR Newswire (US) • 04/12/2024 09:45:00 AM
- Plug Power Inc. Class Action: The Gross Law Firm Reminds Plug Power Inc. Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 21, 2024 - PLUG • PR Newswire (US) • 04/09/2024 10:25:00 AM
- Shareholders of Plug Power Inc. Should Contact The Gross Law Firm Before May 21, 2024 to Discuss Your Rights - PLUG • PR Newswire (US) • 04/05/2024 09:45:00 AM
- Lost Money on Plug Power Inc.(PLUG)? Join Class Action Suit Seeking Recovery - Contact The Gross Law Firm • PR Newswire (US) • 04/02/2024 09:45:00 AM
- The Gross Law Firm Notifies Plug Power Inc. Investors of a Class Action Lawsuit and Upcoming Deadline • PR Newswire (US) • 03/29/2024 09:45:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 01:00:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/01/2024 12:10:31 PM
- Plug Highlights Year of Strategic Growth and Advancements in Accelerating the Green Hydrogen Economy • GlobeNewswire Inc. • 03/01/2024 12:00:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/29/2024 09:02:16 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/23/2024 10:30:04 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 02/23/2024 10:29:30 PM
- Plug and Uline Expand Partnership to Supply Hydrogen and Fuel Cells at Four Additional Sites • GlobeNewswire Inc. • 02/23/2024 12:00:00 PM
- Plug Finalizes Contract to Support A Major U.S. Automobile Manufacturer’s Material Handling Operations • GlobeNewswire Inc. • 02/21/2024 12:00:00 PM
- Plug to Announce 2023 Fourth Quarter and Year-End Results • GlobeNewswire Inc. • 02/21/2024 12:00:00 PM
- Plug Announces Strategic Expense Reduction Plan to Save More Than $75 Million Annually • GlobeNewswire Inc. • 02/14/2024 12:00:00 PM
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