Plug Power Inc (PLUG)

[Jack_Bolander]

WTM - The Seeking Alpha Article is quite comprehensive, with excellent graphs and charts which speak volumes.

The DECLINING Margins Chart is especially troubling !

Copying the summary does not do justice to what this article shows. To those who can, this is a great read. I would copy the entire post, but it is too lengthy.

https://seekingalpha.com/article/4653021-plug-power-sell-and-do-not-look-back?source=copy_to_clipboard

"Takeaway

Issuing additional equity is likely the most realistic option for Plug at this stage, but it won't solve the underlying problems the company faces, and only buys them more time. It also comes at a very bad time, since the company's share price has been seriously eroded. I have tried hard to avoid the b-word in this article, but this amount of cash burn simply cannot continue for long in this economic environment for a company with these kinds of margins.

During the next quarters, we will likely see if Plug can extend the limited time it still has left to improve its margins. This could be done by taking on debt, but I expect that the equity issuing option is the most likely, leading to a large and likely painful dilution for existing shareholders. Other endeavors can help, such as the DOE loan program, tax credits, and the MOA with Fortescue, but these will likely not be enough.

Plug Power is obviously scrambling to avoid a cash crunch and the company is facing potential existential problems, which in my opinion makes it a very dangerous investment. For the reasons I outlined in this article, I would not want to be a shareholder. If I was one, I would sell and not look back."