Citron Research and Andrew Left are out with another hit piece. This time it’s PLUG stock.
— Citron Research (@CitronResearch) August 21, 2020
Left’s Modus Operandi
For anyone that has followed Andrew Left for any period of time knows that his agenda is short and distort. He can move markets. He takes his short position, puts out the hit piece, and then covers. It’s a great gig if you can do it, but it should be illegal. Too many innocent shareholders are on the losing end, while Left profits.
Listening To Citron Won’t Make You Money
Citron is in business for themselves. They are able to build a short position and then cover when the stock sells off. The last stock he did this with and which we warned our readers and subscribers to not listen to him was Inovio Pharmaceuticals, which you can read here. Had you listened to Left in March, you would have missed the run to $35.
We told our readers and subscribers to buy the dip. You can make money trading off Left. He does move markets.
Until the coronavirus pandemic is over, investors will continue to pile into coronavirus stocks. One of the best plays right now for investors is NASDAQ:INO. Dips are to be bought as we still haven’t witnessed peak coronavirus panic. Look for new highs in NASDAQ:INO.
What few people know and realize is that Citron has been negative on PLUG dating back to 2014. For the most part, PLUG stock didn’t go anywhere. It was stuck between $1 and $3 a share.
It has only been this year when PLUG stock has broken out to the upside as all EV plays are hot. We remain bullish and believe dips are to be bought in PLUG stock. In this article, we take a look at the bull case for owning PLUG stock.
About PLUG Stock
First up, here’s a little background info for those of you looking at PLUG stock for the first time. Plug Power describes itself as building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. The Company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while meeting sustainability goals.
Plug Power created the first commercially viable market for hydrogen fuel cell technology. As a result, the Company has deployed over 32,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs.
Plug Power’s vertically-integrated GenKey solution ties together all critical elements to power, fuel, and provide service to customers such as Amazon, BMW, The Southern Company, Carrefour, and Walmart. The Company is now leveraging its know-how, modular product architecture, and foundational customers to rapidly expand into other key markets including zero-emission on-road vehicles, robotics, and data centers.
Reasons To Be Bullish On PLUG Stock
Here are just a few reasons we remain bullish on PLUG stock.
- Through Lightning, Amazon will be putting on the road this year — both in North America and Europe — hydrogen-powered trucks powered by Plug Power fuel cells.
- When we look out to 2024, we believe Plug Power will be a $1.2-billion business with about $200 million of that coming from vehicles.
- In Paris and London, we are beginning to see taxis operating on hydrogen. If you have centralized refueling, it actually can be a much lower cost than electrical refueling. So it is going to be applications that are fleet vehicles, trucking, and areas like that where we think fuel cells will dominate by the end of this decade.
- The recent acquisitions of United Hydrogen Group and Gliner ELX are game-changers. These acquisitions are in line with the Company’s vertical integration strategy in the hydrogen business laid out in September 2019 with plans to have more than 50% of the hydrogen used to be green by 2024.
- Plug has $250 million in sales and is on track for $1.2 billion in sales within 4 years. Nikola has ZERO in sales and sports a $15 billion market cap compared to Plug’s $5 billion market cap.
- If hydrogen becomes a major source of energy for the world, supplying it could become a larger segment of Plug Power’s business than fuel cells.
- The company is also in discussions with multiple locations for the siting of a state-of-the-art facility for fuel cell and electrolyzer production at Gigawatt scale capacity.
- Plug deployed a record 2,800 GenDrive fuel cell systems and three hydrogen fueling stations/network in the Q2 2020 quarter, bringing the total historical deployments to ~35,000 GenDrive systems and 100 hydrogen fueling stations/network.
- Plug just unveiled a new 1kW ProGen fuel cell system intended for small scale robotics, automatic guided vehicles, unmanned aerial vehicles, and other aerospace applications.
- PLUG’s new fuel cell system is a larger and more powerful version of the ProGen 450W. The new ProGen 1kW fuel cell system is protected by five U.S. patents and is one of five sub-2kW products offered by the company.
- Plug is well-capitalized after raising $300 million.
- H.C. Wainwright analyst Amit Dayal maintains a Buy rating on Plug after the news, saying the company’s hydrogen fuel cell-powered forklifts are “quickly becoming the go-to solution” for big-box retailers in the U.S. and Europe.
- 15% of the float is short.
These are just a few of the many reasons to be bullish on PLUG stock. With the company’s leading technology and vertical integration, PLUG stock deserves a much higher valuation. Any sell-off on the Citron news should be viewed as an opportunity to pick up cheap exposure to a stock with a bright future. Shorts like Left are about to get squeezed, it’s not a matter of if, but when.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:PLUG or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.