Plug Power Inc (PLUG)

[drugmanrx]

You don't really believe this nonsense do you?

yes the warrants may be dilutive eventually but as Henrik set out it really represents a volume discount and Andy even mentioned that if someone else wanted to commit $600m to them they could get a deal. By doing this it means they can keep their regular sales price higher , some big companies will try to get preferred customer pricing and by not discounting toWalmart orAmazon directly they can honestly keep their preferred customer price high.

They have now set a precedence, you don't believe for one second that a preferred customer or a new customer wouldn't be asking for similar deals, diluting shareholders further along the way.

If a China deal did come to fruition you don't think they would want something similar to Amazon and Wal-mart if not more.

Andy even mentioned that if someone else wanted to commit $600m to them they could get a deal

If someone committed a 200 million you don't think Andy wouldn't give them a percentage of the Wal-mart and Amazon deal say 18 million in warrants.

I side with Roth on this one, "the company also is eroding the quality of its future revenue, margins and earnings."

What it tells me is that the profit margin is not high enough to offer Wal-mart and Amazon a direct volume discount of the actual prices of the fuel cells.

So in order to get them to buy with out showing that PLUG is losing money on the two deals they offer discount stock prices to hide the losses.

Thus using dilution to manipulate the balance sheet off the shareholders backs.