Plug Power Inc (PLUG)

[uksausage]

they make 30% margin on the hardware what more do you want?

the hydrogen and service lines are almost at break-even now due to economies of scale and they have visible market opportunity to triple the business

they will make a profit in Q3 given the planned scale up of Amazon and Walmart installations. Amazon did over $50m in 9 months last year (really only 6 as there was inventory build up), imagine when they are doing $50m a quarter.

There are three things that are making financials look bad at the moment

a) the warrants being accounted for as a "reduced revenue/discount" which is pretty accurate but since they seem to be doing it on a pro rata rate every quarter there will be a line equating to the number of equivalent warrants Amazon and Walmart have acquired a right to.

b) Research and development which has grown again but they claim will stay at the new level this year - new metal cells come available in H2 which should be cheaper and more reliable - hopefully they can automate their assembly as well which will slash the product cost. The ProGen engine line of modular solutions will come from here as well as Delivery truck and Airport GSE solutions

c) SG&A no comment as to why this has grown as much as it has as their marketing efforts are as bad as ever.

Still given all the above they will be making enough in Q3 to cover it all. The numbers prove it

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