For the second day in a row, shares of fuel cell pioneer Plug Power (NASDAQ:PLUG) are moving higher and recovering some of the losses suffered from Citron's short attack last week. After rising 4% on Tuesday, Plug tacked on more than 6% in early gains this morning.
It's retraced a bit since -- but remains up 2.2% as of 1:30 p.m. EDT.
Why is Plug stock going back up -- and on a day when there appears to be no positive news about any company in the fuel cell world? I can only surmise that investors are beginning to realize that the short report that Citron put out on Plug stock last week, while damning, wasn't exactly original.
Citron pointed out that Plug has "never generated a profit" -- and that's true -- but it's also been true for the last 23 years, during which time Plug never generated profits. The fact that Citron just reminded us of the point Friday hardly seems like a good reason to suddenly abandon faith in the company (assuming you had faith in it in the first place).
Granted, Citron also raised other objections to Plug, such as its prediction that the company will "miss 2020 revenue guidance by 40%." But Citron's almost alone in making that assertion. On average, analysts who follow Plug stock mainly agree that this year's revenues will be of the blockbuster variety -- up nearly 35% from last year.