PLUG
PLUG power price action forecast for next week!Our cycles analysis indicates the following forecast for price action this upcoming week! Will be utilizing 10$ strike Put and 13$ strike Call options for 8/21 and 8/28, respectively!!
Ultimately headed to 22-25$ per share by end of September 2020 in our view!!
Let us know your views in the comments below!!
$PLUG Plug Power - Downtrend Breakout on 2x Avg Volume$PLUG Plug Power - Downtrend Breakout on 2x Avg Volume
A pull-back and retest of the downtrend line as support is possible later this week. A successful retest would be the ideal entry point.
Target: $13.00 possible by Sept
*Assumes a positive ER coming later this week.
Note: Not investment advice.
United hydrogen and plug power Plug Power recently acquired United Hydrogen Group, one of the largest privately held merchant hydrogen producers in North America. It was the first independent company to offer a full suite of capabilities in liquid hydrogen production, distribution and logistics.The company has the capability to produce 6.4 tons of hydrogen each day with plans to increase that capacity to 10 tons daily in the near future, as well as plans for further expansion. With the two companies coming together we will be able to advance the hydrogen economy faster and more efficiently-Via PlugPower
$PLUG:NASDAQ - PLUG POWER - Hydrogen Fuel CellsPlug is up 190% over the last 12 months and as an alternate energy source to fossil fuels could be worth a look.
Plug Power, Inc. provides alternative energy technology, which focuses on the design, development, commercialization, and manufacture of hydrogen and fuel cell systems used primarily for the material handling and stationary power markets. Its fuel cell system solution is designed to replace lead-acid batteries in electric material handling vehicles and industrial trucks for some distribution and manufacturing businesses. The company was founded by George C. McNamee and Larry G. Garberding on June 27, 1997 and is headquartered in Latham, NY.
Bullish Sector - Booming Revenue, Joining Russell 3000FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company offers SureSource product line based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen, and micro-grid, as well as multi-megawatt applications; and SureSource Recovery power plants for natural gas pipeline applications. It also provides SureSource Capture system that separates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; and SOFC/SOEC and Energy Storage, a solution for energy storage using solid oxide technology. The company's SureSource power plants generate electricity and usable heat. It serves various markets, such as utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, and commercial and hospitality. The company primarily operates in the United States, South Korea, England, and Germany. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
On 06/26/20, FCEL announced it was joining the Russell 3000
On 06/12/20, FCEL announced record earnings with an inline on EPS and a beat of $18.90 million on revenue.
Revenue increased 105.08% over sales of $9.22 million the same period last year.
Currently, Daily Chart looks good.
PMO is rising, Bullish
MACD is rising, Bullish
OBV is rising, Bullish
Long!
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Positive macro-context for PLUG (long term)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) :https://www.plugpower.com/products/progen/fuel-cells-for-aerospace-uav-applications/
-Forklifts
-Robots
-But also a promising truck segment (www.bizjournals.com
There should be a growing demand for these 4 in the context of a development of warehouses utilities and delivery services worldwide: www.bloomberg.com
Amazon (led by an incredible momentum currently) invested in PLUG: www.investopedia.com
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":
www.timesunion.com
Macro-context: Environmental policies and Hydrogen demand & facilities to grow:
seekingalpha.com
www.globenewswire.com
Plug power can become a leading seller of hydrogen:
investorplace.com
PLUG - failed breakout vs. impending short squeeze?PLUG with 80% volume shorted today with a bearish candle on the daily..
The question is whether this was a failed break out w/ an inverted H&S or a set up for a short squeeze into earnings?
4.71 resistance but appears to have found support at 4.31 near end of day trading.
Expect that if 4.29 can hold, holding CALLS into earnings seem like an attractive idea. Below that level likely means we re-test the trend line.
Short $PLUG - Correction Anticipation$PLUG is highly volatile and had a huge "buy the news event" when it announced a $172m contract over 2 yrs by an unnamed buyer. This is undoubtedly good for $PLUG over the long term, but an +18% move yesterday is optimistic at best. Shorting for a 5-8% profit exit.
Enphase to Find Resistance at $36 in Early 2025Although Enphase is an excellent inverter company for solar panels, and has treated its investors to a 420% year to date increase in value, I am feeling that CNN Business's analysis is too optimistic:
"The 10 analysts offering 12-month price forecasts for Enphase Energy Inc have a median target of 30.00, with a high estimate of 40.00 and a low estimate of 26.00. The median estimate represents a +21.85% increase from the last price of 24.62."
Solar panel companies have a tremendous amount of competition and also failure rate when we look at them historically. Due to the consistent innovation and subsequent outdating of previous technology, it is possible that a company like Enphase could be completely off the trading market within a decade. Yes, it could even happen in the next 12 months. I would not invest into this company if I wanted to sell within 6-12 months.
Do I think this stock is going to go under in the next 12 months? No, but I also don't think that it could hit a median of $30 within the next year.
Let the technology, market, and consumers play it out for the next 5 years and we will see this stock increase from $24.62 to over $35.
I have 70% confidence in this analysis. I am holding Enphase and PLUG to diversify into the energy sector.