Positive macro-context for PLUG (long term)
Updated
PLUG seems to be a quite safe bet for the future. Here are my arguments:
From a financial perspective, EBIT is negative, but total revenues are growing at a stable pace since years now. Plug will certainly find it's way to profits when industrialization optimized (see arguments for this below).
EBIT is lower, but is explained by higher cost of produced goods (and not by the fact that they sell less). Productive investment is a key aspect in such an innovation demanding industry.
Plug is specialized in fuel cells and created an expertise in powering the following:
-Drones (hydrogen backed tech allows for longer lasting flights for these aerodynamics and size of machine) :plugpower.com/products/progen/fuel-cells-for-aerospace-uav-applications/
-Forklifts
-Robots
-But also a promising truck segment (bizjournals.com/albany/news/2020/02/12/retail-race-with-amazon-is-good-for-plug-power.html=
There should be a growing demand for these 4 in the context of a development of warehouses utilities and delivery services worldwide: bloomberg.com/news/articles/2020-05-07/delivery-boom-kicks-hydrogen-powered-forklifts-into-hyperdrive
Amazon (led by an incredible momentum currently) invested in PLUG: investopedia.com/news/why-amazon-invested-plug-power-amzn-plug/
I wouldn't be surprised to see an offer from Amazon to buy PLUG, which would make the stock skyrocket, giving to Amazon the opportunity to diversify even more.
Walmart (which is more resilient than average during COVID as a consumer cyclical stock) is a big client also:
"Plug Power plays huge role helping Amazon and Walmart supply America during COVID-19 crisis":
timesunion.com/business/article/Plug-Power-playing-huge-role-in-helping-Amazon-15254512.php
Macro-context: Environmental policies and Hydrogen demand & facilities to grow:
seekingalpha.com/article/4341590-hydrogen-industry-dawning-of-hydrogen-economy
globenewswire.com/news-release/2020/05/13/2032580/0/en/Plug-Power-Inc-Launches-First-Ever-Convertible-Green-Bond-Offering-in-the-US-to-Fund-Company-s-Hydrogen-Strategy.html
Plug power can become a leading seller of hydrogen:
investorplace.com/2020/05/plug-power-can-become-a-leading-seller-of-hydrogen/
From a financial perspective, EBIT is negative, but total revenues are growing at a stable pace since years now. Plug will certainly find it's way to profits when industrialization optimized (see arguments for this below).
EBIT is lower, but is explained by higher cost of produced goods (and not by the fact that they sell less). Productive investment is a key aspect in such an innovation demanding industry.
Plug is specialized in fuel cells and created an expertise in powering the following:
-Drones (hydrogen backed tech allows for longer lasting flights for these aerodynamics and size of machine) :plugpower.com/products/progen/fuel-cells-for-aerospace-uav-applications/
-Forklifts
-Robots
-But also a promising truck segment (bizjournals.com/albany/news/2020/02/12/retail-race-with-amazon-is-good-for-plug-power.html=
There should be a growing demand for these 4 in the context of a development of warehouses utilities and delivery services worldwide: bloomberg.com/news/articles/2020-05-07/delivery-boom-kicks-hydrogen-powered-forklifts-into-hyperdrive
Amazon (led by an incredible momentum currently) invested in PLUG: investopedia.com/news/why-amazon-invested-plug-power-amzn-plug/
I wouldn't be surprised to see an offer from Amazon to buy PLUG, which would make the stock skyrocket, giving to Amazon the opportunity to diversify even more.
Walmart (which is more resilient than average during COVID as a consumer cyclical stock) is a big client also:
"Plug Power plays huge role helping Amazon and Walmart supply America during COVID-19 crisis":
timesunion.com/business/article/Plug-Power-playing-huge-role-in-helping-Amazon-15254512.php
Macro-context: Environmental policies and Hydrogen demand & facilities to grow:
seekingalpha.com/article/4341590-hydrogen-industry-dawning-of-hydrogen-economy
globenewswire.com/news-release/2020/05/13/2032580/0/en/Plug-Power-Inc-Launches-First-Ever-Convertible-Green-Bond-Offering-in-the-US-to-Fund-Company-s-Hydrogen-Strategy.html
Plug power can become a leading seller of hydrogen:
investorplace.com/2020/05/plug-power-can-become-a-leading-seller-of-hydrogen/
Comment
From a Technical Analysis perspective: the consolidation we see after the pullback that ended mid-March is a nice signal.Comment
No financial advice given hereComment
"Germany earmarks $10 billion for hydrogen expansion"reuters.com/article/us-health-coronavirus-germany-stimulus-idUSKBN23B10L
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