2024-07-01 11:43:38 ET
Summary
- Plug Power Inc. investors saw their substantial gains in May nearly dissipate fully in June.
- The optimism over the DOE's loan guarantee shouldn't be expected to mask Plug Power's fundamentally weak business.
- The threat of a potential return of the Trump Administration could intensify uncertainties over PLUG's long-term future.
- PLUG has consolidated above the $2.25 level since January 2024. Hence, short-covering might follow.
- I argue why investors shouldn't allow the allure of PLUG's green hydrogen story to distract them from its weak thesis. Read on.
Plug Power: Hope Isn't An Investment Strategy
Plug Power Inc. ( PLUG ) investors have endured a roller-coaster ride over the past two months. After witnessing an incredible surge in mid-May 2024 as PLUG investors reacted positively to the DOE's "$1.66 billion conditional commitment loan guarantee." Plug Power had provided constructive commentary at PLUG's Q1 earnings call in early May. Given the size of the loan guarantee, it should strengthen Plug Power's ability to continue scaling up its green hydrogen production capacity. I cautioned PLUG investors in my February 2024 article that relying on hope isn't a viable investment strategy. Given the inherent uncertainties in the DOE's loan guarantee, investors should focus on PLUG's fundamentals....
Read the full article on Seeking Alpha
For further details see:
Plug Power: Broken Growth Story Needs More Than Just Hope