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Plug Power Inc (PLUG) Experiences Extreme Whipsaw Action

  +Follow January 9, 2014 11:39AM
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Green energy company Plug Power Inc. (PLUG) continued its trend of violent up and downswings, as shares dropped significantly the day after an announcement of a deal with FedEx caused shares to soar.

Plug Power had been on a dramatic rise at the end of 2013, with a particularly sharp uptick in December. That first spike was caused by an announcement from CEO Andy Marsh, who assured investors that for the first time in 16 years Plug Power would finally turn a profit.

Plug Power develops and manufactures clean energy fuel cells. With the green energy market exploding, Plug Power had finally started to see a turnaround.

Major Uptick

Following a return to profitability, Plug Power gained additional traction on Jan. 8 when the company announced a partnership with shipping behemoth FedEx (FDX) to supply them with clean energy fuel cells for a proposed fleet of electric delivery trucks.

The $3 million deal was financed by the Department of Energy, who have supplied hefty good-faith loans and subsidies to green energy companies as of late.   

The resulting stock rise meant that in less than two weeks, the company had doubled in value.

Major Correction

The very next day the market corrected investors' exuberance. After all, the deal with FedEx, while nice, hardly justified an over $50 million one-day increase in valuation. On Jan. 9 the stock plunged amid heavy trading, shedding 21.20 percent in value to settle in at $3.59 a share.

As recently as one year ago, Plug Power, which at one time was worth over $1,500 a share, was on the brink of bankruptcy. While they have indeed returned to profitability, and the trend towards green energy seems to have no chance of waning anytime soon, the massive valuation increase of Plug Power was not sustainable, and could be due for further correction going forward.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for PLUG
R. J. Sullivan IV
26 Jan 15 21:10:54
RT @OphirGottlieb: Whatever Happens at $PLUG... It Better Happen Soon http://t.co/t1xbKYrghg via @benzinga http://t.co/ElpkILtdoc
Ophir Gottlieb
26 Jan 15 20:59:48
Whatever Happens at $PLUG... It Better Happen Soon http://t.co/t1xbKYrghg via @benzinga http://t.co/ElpkILtdoc
Woll Street
26 Jan 15 20:54:35
$PLUG - plugged this https://t.co/LxgIYhEyX3 January 17th.. move > 22% since. Shows why backtests worth watching/playing.
Nathan
26 Jan 15 20:52:12
@hedgefundclone I'm sitting on comfortable gains on $CHK right now, uncomfortable losses on $PLUG, in fact I'm torn about Plug overall
chartguy89
26 Jan 15 20:45:39
PLUG +6.97% Stock Charts $PLUG Plug Power Inc. (NASDAQ) Last Updated: 01/26/2015 22:45:47 PLUG Stock Chart - 1 http://t.co/XVbIIuZlU9
HotStockAlert $PKGM$
26 Jan 15 20:33:43
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/knoDl7hsY1
DayTraderChoice
26 Jan 15 20:27:08
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/l0Vpu3UVK3
HotStockAlert $PKGM$
26 Jan 15 20:19:56
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/XVRasIxgwF
DayTraderChoice
26 Jan 15 20:19:49
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/xmSJddRCXs
Exposethebest
26 Jan 15 20:19:41
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/yLhrIecCcg
DayTraderChoice
26 Jan 15 20:18:15
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/KeFGIxBTw2
HotStockAlert $PKGM$
26 Jan 15 20:18:08
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/KMtryAZWWw
Matt Smith
26 Jan 15 20:00:40
Watchlist - $CRIS $MEA $PLUG $RITT $COSI $ARRY $NVIV
Lusitanian Traders
26 Jan 15 19:09:32
PLUG - Technical Analysis ( Daily) $PLUG http://t.co/6jIzOKbMfk
Josh Cacho
26 Jan 15 18:26:06
@DarthMCGP $PLUG sweep 2480 2/27 $3 C for .28 -- earnings comin soon
Stock Rocket
26 Jan 15 16:40:36
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $LPR $TGD $PLUG
@Boulder2DIA
26 Jan 15 16:22:44
@lfburch @TheEmulator23 the #HomeDepot as new $PLUG customer discovered Jan 16th, why did 33 million short not cover??
Jonathan Lee
26 Jan 15 16:01:41
5.69% gains in two days. Stock market treating me well this year $TSLA $NOK $SCTY $C $PLUG
The American
26 Jan 15 15:56:01
$PLUG $BLDP $FCEL $HYGS All Had Nice Pop Today $TIME To Upgrade The $US Energy $GRID $NRG $XLE $XLU $PFF $AMLP All Pay Nice $DVY And $SDIV
@Boulder2DIA
26 Jan 15 15:46:01
@bfeld interesting #blizzard2015 spurring interest in back up power #HydrogenFuelCells $FCEL up 12%, $PLUG up 8%
@Boulder2DIA
26 Jan 15 15:35:15
@ACInvestorBlog Jan 16th discovery as #HomeDepot new customer for $PLUG 33 million could have covered $2.60 , $PG $KR also adding PLUG
10X Trading
26 Jan 15 15:20:21
Clay Trader Plug Power Inc $PLUG Stock Chart Technical Analysis for 01-26-15 http://t.co/CQVV2LCyXt
Stock Rocket
26 Jan 15 14:47:08
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $PFSW $PLUG $PLXT
Small Cap Strategist
26 Jan 15 14:44:18
Most searched small-cap stocks, Mon Jan 26th - $NWBO $RITT $EMAN $FXCM $BDSI $PLUG $CY $TASR - More: http://t.co/1znvSP0l3X - #smallcap
michael hall
26 Jan 15 14:44:04
@IHeartErrl $plug back above 3 after its pullback very bullish into its conference call
michael hall
26 Jan 15 14:36:27
@IHeartErrl $plug closed up 6.97% $exxi up 9.34% so you was saying
Derek Pretlow 3rd
26 Jan 15 14:35:11
RT @ClayTrader25: VIDEO - $PLUG Stock Technical Analysis - 01-26-15 - watch here: http://t.co/TgfjAidEyX #stock #stocks #stocktrading
Antonio Costa
26 Jan 15 14:17:13
Stocks to keep an eye on January 27, 2015 http://t.co/psgg7Lvewc $AMD $FCEL $PLUG $SD $VHC $WYNN
HotStockAlert $PKGM$
26 Jan 15 14:04:47
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/RmzHbKJcxS
DayTraderChoice
26 Jan 15 14:04:44
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/62Ya7yyRR0
DayTraderChoice
26 Jan 15 14:03:50
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/ZFBxbU80Ju
Exposethebest
26 Jan 15 14:03:46
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/Gq1NL175mX
HotStockAlert $PKGM$
26 Jan 15 14:03:41
ClayTrader: * * $PLUG Video Chart 01-26-15 * * http://t.co/wx9IYkieMS
ClayTrader
26 Jan 15 13:53:09
VIDEO - $PLUG Stock Technical Analysis - 01-26-15 - watch here: http://t.co/TgfjAidEyX #stock #stocks #stocktrading
michael hall
26 Jan 15 13:38:35
wanna learn how to #swingtrade #daytrade add me to Skype shortpinks we had crazy runners today $plug $exxi holding strong #NASDAQ
Dalton Castine
26 Jan 15 13:30:36
Portfolio: $TKMR $PLUG $FCEL
@Boulder2DIA
26 Jan 15 13:24:35
@biggercapital somebody looking for backup power?? #blizzard2015 $PLUG #HydrogenFuelCells this Blizzard going to spike #BackupPower
Bull Logic
26 Jan 15 13:11:55
$PLUG held up well. More of the same tomorrow.
michael hall
26 Jan 15 13:04:54
strong day today for $plug $exxi looking to learn how to trade add me to Skype shortpinks http://t.co/j98I93L86C
michael hall
26 Jan 15 13:02:40
strong day for $plug $exxi join our trading room add me to skype shortpinks $daytrading http://t.co/mEdbZ2KyFS
Antonio Costa
26 Jan 15 12:57:24
$PLUG strong close... holding...
Dean
26 Jan 15 12:55:20
4 tmrw start $RITT $COSI $PLUG $CNET
Antonio Costa
26 Jan 15 12:50:20
$PLUG pop
PsychSignal
26 Jan 15 12:44:17
Bullishness in $PLUG dropped 92.6% compared to past 48hr bullish average of 1.77 on a scale of 0-4
Antonio Costa
26 Jan 15 12:38:39
$FCEL $PLUG looking good ...
StockTalk
26 Jan 15 12:37:37
RT @yankeegank: @bman_alerts taught me the skills to scan paying off today $MNKD $PLUG $REXX $PHMD $AMD $XCO $EXXI just to name a few!
BULLDOG INVESTOR
26 Jan 15 12:22:54
@bman_alerts taught me the skills to scan paying off today $MNKD $PLUG $REXX $PHMD $AMD $XCO $EXXI just to name a few!
@Boulder2DIA
26 Jan 15 12:20:08
RT @Upriter: With $PLUG special update in 2 days and the Ceo's stance. Hopefully the 3's will be a distant memory. Could be a huge cc. Addi…
TradeTexasBig
26 Jan 15 11:59:34
first time $PLUG, $FCEL folks, just be careful.. i have tried playing them and havent figured out if they are real or not..
sabaranis
26 Jan 15 11:57:48
RT @JeffreyHoppe: @WallStJesus $PLUG CEO CFO have conference call on the 28th.
				
				
  +Follow January 9, 2014 11:39AM
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