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These 3 stocks missed a minor tech rally
Source: Wikimedia Commons.
From June 9 to June 13:
• 57% of tech stocks with more than $300
million market caps advanced this week.
• Plug Power, NQ, and Finisar
didn’t get the memo.
• Their weekly declines ranged from
slow (Plug Power quietly lost 5.5%) to
terrifying (Finisar plunged 20% overnight).
Plug Power had a quietly
No big, fresh news driving the action.
Good news on Thursday
Source: Plug Power.
• Speaking at the Green Retail Decisions Innovation
Summit conference, Plug Power sales VP Erik Hansen
raised buying interest from the audience.
• “The significant value of Plug Power's hydrogen fuel
cell solution became more apparent as the audience
began to understand the productivity gains provided
by our economic and green GenKey solution,”
Hansen said afterward.
• But the Thursday gains didn’t last.
Plug Power’s problem:
• The company presented
terrible first-quarter results in April.
• Investors are still digesting
the bad news.
• It doesn’t help that Plug Power
shares are notoriously volatile.
Plug Power has gained
812% in the last year,
warts and all.
…but the stock is still
down 60% in 5 years
and even worse over
The Plug Power takeaway:
• Plug Power is a turnaround story in progress.
• If hydrogen fuel cells take off in a big way, the
rewards can be huge.
• But that’s hardly a guaranteed outcome. Plug Power
could also crash and burn if other alternative fuels
• This is a high-risk, high-reward stock.
• Plug Power remains more of a gamble than a sound
investment until further notice.
Internet vendor NQ
lost 15% this week.
What’s wrong with NQ?
• You might recall NQ shares jumping
34% overnight, just one week earlier.
• That pop signaled the end of a fraud
• So NQ came out with a clean bill of
health, but investors still want
more… and for good reason, too
Well, what’s missing?
NQ investors are still waiting for:
• An overdue annual report, and
• A complete report of the fraud audit’s findings.
Without these documents, investors are losing
patience – not to mention confidence in NQ’s
Where is NQ going next?
• Fellow Fool Steve Symington recently
explained how the risks and
opportunities stack up around NQ.
• Spoiler alert: Steve says that the
shaky rewards are not worth the
real risk of NQ shares perhaps
going to zero.
Finally, optical networking
expert Finisar took the
dramatic route, plunging
What happened to Finisar on Friday?
• Thursday night, Finisar reported fourth-
• As the chart shows, investors didn’t like
the report at all.
• They had expected more, thanks to
strong results from major Finisar
customer Ciena just one week earlier.
Finisar by the numbers
• Finisar’s sales did jump 26% year-over-
year, beating analyst targets.
• But gross margins compressed 4%, and
• Looking ahead, Finisar’s management
expects another quarter of big sales but
Is this the end of Finisar?
• Not hardly.
• Optical networking still has a ton of growth
ahead of it.
• One bad quarter will not destroy Finisar’s
rock-solid balance sheet.
• Fellow Fool Brian Pacampara is intrigued by
the limited downside he sees in
Finisar shares today.
Here’s the Next Big
Thing, ready for your