Replies to post #54924 on Plug Power Inc (PLUG)

[Jack_Bolander]

WTM - That seems to be your problem, not mine.

[B_B!]

Plug Power: Can The Annual Business Update Provide A Lifeline For The Stock?
Jan. 20, 2024 Giesbers Investment Strategy
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During the conference call, I am most interested in clues about possible margin improvements of Plug, such as the following:

- Mentioning of cost reductions in hydrogen production
- Positive (or negative) news about construction and coming online of Plug's hydrogen plants
- Will there be new provisions for loss contracts related to service necessary?
- Any news about Plug's PPAs (power purchase agreements)
- News about to which extent Plug is likely able to make use of the green hydrogen production subsidies
- Major reorganizations at Plug such as dramatic cost-cutting, renegotiation of existing contracts or sales of some assets

What to pay attention to during Plug Power's annual business update

Likely the number 1 question on most people's mind is: how close is Plug to the DOE loan and under which conditions? In case Plug would mention during the upcoming conference call that agreement was reached about the loan, this could lead to a recovery for the shares. Of course, it would be in the interest of Plug to aggressively use its ATM facility in case of a rally, so I believe that such a recovery would be short-lived.

I think other news that influences the bottom line of Plug is also likely to be impactful for investors. Margin improvements and decreasing the velocity of the cash burn is very important, and any positive news related to this is likely to be welcomed by investors.

I think that at the moment, the scope for deterioration of Plug's financial situation is relatively limited. As such, I do not expect that the stock will respond as strongly to negative news as it will to positive statements during the upcoming conference call. On the other hand, Plug has a history of overpromising and underdelivering, which is illustrated by the company's streak of earnings misses. This might make investors more skeptical of positive news.
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A possible DOE loan could provide for some relief, so if Plug would announce positive news this could provide a catalyst for a relief rally. But I expect such a rally to be short-lived because of the ongoing share issuance. I consider Plug Power to be a very speculative and dangerous investment for anyone other than short-term traders.

https://seekingalpha.com/article/4663961-plug-power-can-annual-business-update-provide-lifeline-for-stock