Why Plug Power Inc's Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Plug Power Inc (NASDAQ: PLUG  ) jumped 10% today after an analyst made positive comments about a competitor.

So what: Plug Power's fuel cell competitor Fuel Cell Energy received some positive comments in an analyst note from Stifel Nicolaus, and that pulled all fuel cell companies higher today. The problem is, Plug Power and Fuel Cell Energy don't compete in the same markets, and the fact that Fuel Cell Energy's power plants may be competitive with renewable energy has little to do with Plug Power.  

Now what: The fuel cell craze continued today, and investors continue to be fooled into thinking that all fuel cell companies are alike. They aren't, and Plug Power doesn't even make its own fuel cells, making the bump even more illogical. I'd stay out of the move today, because it wasn't related to Plug Power, and take a skeptical view as it is. I think the stock has run too far, too fast and Plug Power is far from making the profit investors have priced into the stock.

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Read/Post Comments (7) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On May 28, 2014, at 4:37 PM, OliverAZ wrote:

    Oh really, PLUG does not manufacture its own fuel cells? I am so tired of reading these articles from analysts who use outdated or incorrect information. Please spend at least a few minutes researching a company before posting an article about it.

  • Report this Comment On May 28, 2014, at 5:49 PM, shirtbrigade wrote:

    Your thesis would have to explain how those who did buy the stock missed the fact that PLUG has 150+ patents in the same space as the analyst's comments. Or how about the fact that most of the buying is institutional. Are you saying all those institutions got tricked? Just because you have a short position or handler, does not excuse intellectually dishonest journalism.

  • Report this Comment On May 28, 2014, at 6:37 PM, polsontom wrote:

    Correct me if I'm wrong, but didn't Plug just acquire Relion recently just to be able to make more of their own fuel cells? Also, @OliverAZ thank you. I understand everyone thinks PLUG is only a speculative, high volume driven stock, but at least do the research first.

  • Report this Comment On May 29, 2014, at 12:56 AM, investingNideas wrote:

    WalMart to { TRIPLE } warehouse fuel cells ! Article in GREEN RETAIL DECISIONS TODAY !!Green Retail Decision Summit June 2nd to 4th keynote speaker Fred Bedore Director Sustainbility WalMart !GO PLUG POWER GO !


  • Report this Comment On May 29, 2014, at 12:57 AM, investingNideas wrote:

    Walmart to Triple Warehouse Fuel Cells

    Walmart currently has more than 500 fuel cell forklift units operating at several warehouses, and is about to more than triple that number adding 1,200 units at six more warehouses in North America.

  • Report this Comment On May 29, 2014, at 1:09 AM, nguyenq wrote:

    What a garbage analysis and talking point! I have no respect for a cheap writing. Sorry harh words.

  • Report this Comment On June 01, 2014, at 7:17 AM, alj177 wrote:

    "Find stocks that LOOK expensive" - Your founder, David Gardner.

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Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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9/2/2015 4:00 PM
PLUG $1.71 Up +0.05 +3.01%
Plug Power, Inc. CAPS Rating: *