Hold on Tight, Plug Power Investors: This Roller Coaster's Not Done Yet

Plug Power investors had better have an incredibly strong stomach.

Mar 12, 2014 at 7:15PM

The stomach-churning, roller-coaster ride for Plug Power (NASDAQ:PLUG) continues this week, with the stock rebounding more than 15% today after crashing hard on an analyst's research report yesterday that called for the stock to implode entirely once the hype dies down.

On Tuesday's edition of "Stock of the Day", host Mark Reeth and Motley Fool analyst Simon Erickson discussed the incredible ride Plug Power has had so far. Simon tries to look through the exuberance and notes that while this is a disruptive new technology that has attracted some big-name clients so far, he still views it ultimately as a manufacturing company, which needs to pitch, manufacture, and ship each and every sale. While the market may be hoping for the next Tesla Motors with this stock as excitement over electric vehicles continues at a fever pitch, the price here may have become entirely disconnected from any reasonable valuation.

Simon also points to the fact that the share count has tripled in the past three years, prior to the stock's jaw-dropping 3,500% gain over the past year. Simon's pretty convinced that the capital-intensive nature of the business will mean more share dilution down the road, and says that with the company still in the negative on its gross margin line, he definitely doesn't like this stock today.

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Mark Reeth has no position in any stocks mentioned. Simon Erickson has the following options: long January 2015 $7 puts on Plug Power. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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