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Re: JOHNNY-VEGAS post# 33866

Friday, 06/15/2018 3:23:03 PM

Friday, June 15, 2018 3:23:03 PM

Post# of 55998
why highlight something that is totally irrelevant to this years business.?

do you understand corporate financing and accounts? the accumulated deficit is an interesting number and can be used to compare two similar companies to say how much they achieved spending (losing) x amount but it isn't debt that has to be repaid - that is listed elsewhere.

Any business that takes research and development to market will have accumulated a lot of "deficit" every year while developing their solution. before they even sell a single device.

PLUG haven't stopped developing and researching (as their recent acquisition shows) and this is why they have yet to turn a profit - each quarter they invest $8m or so in R&D alongside another $8m in sales and marketing (on what I have no idea!)

Their business strategy has been setout for at least 3 years now and it is easy to extrapolate the numbers to see it will take a revenue of c $60m a quarter to get enough gross margin to cover these corporate overheads.

That happens in Q3 this year - the revenue number is almost guaranteed.

The R&D they are doing at the moment may deliver a huge impact on margins (cost per kwh 25% of current cost per kwh.), add in automation of the manufacturing process and you get even more savings
It also is entering two new markets - GSE in which they are the only player and tethered delivery vehicles where a few players are trying to get into the vast marketplace.

That's why R&D is consistent at $8-9m a quarter

thats why they will grow to be $500m a year by 2021



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