2. Plug Power Inc. ($PLUG) is a provider of
alternative energy technology
Focused on the design, development,
commercialization and manufacture of fuel
cell systems for the industrial off-road
(forklift or material handling) market.
Headquarters in NY’s Tech Valley: Albany
3. Staff has generated 152 patents already.
Began as R&D firm
Recognized today as a market driven, leader in
advanced manufacturing
Leadership acknowledges Plug Power has only
tapped a small portion of its potential market
share.
“Simply put, if an internal combustion engine is
used today, a fuel cell can be used
tomorrow…and Plug Power is the industry leader
in making this possibility a reality.” –Andy Marsh,
President and CEO
7. Sales, General,
and
Administrative
Expense
2011:
$14,545,965.00
2012:
$14,576,998.00
$12,325,466.00
-53% of Net
Income
-46% of Net
Income
-20% of Net
Income
Still evolving into a commercialized firm
Having issues with sales practices
2013:
Very expensive research and manufacturing
processes
Not every “smart” company begins with a
business minded leader
8. 2011: Public offering of
9,332,750 shares
Year-end balance of 22,924,411
2012: Public offering of
14,950,000 shares
Year-end balance of 38,404,764
2013: Public offering of
43,101,800 shares
Year-end balance of 106,356,558
The firm is still
in a very young
building stage.
Multiplying its
common stock
shares by ten in
just three years.
Has yet to pay a
dividend.
9. 2011
• Debt Repayment
• ($9,956.00)
2012
• ($170,222.00)
• 1610% increase
2013
• ($4,079,509.00)
• 2297% increase
The company is using cash to repay debt of past
investing activities.
Doing so is effecting their book income, while
gearing up for a bright future.
10. P/E = -9.91
EPS = -0.08
Current Ratio = 1.88
◦ PLUG has the ability to payoff its liabilities with ease
Quick Ratio = 0.91
◦ PLUG’s assets are more tied up in a long-term
scope
11. Yahoo! Finance labels $PLUG as diversified
electronics. This is true, however, the
underlying goal of Plug Power and similar
firms is to replace fossil fuels and create a
renewable energy-based world.
BP is not so much a competitor, but an
enemy.
12. BP’s key financial ratios:
Current: 1.33
Quick Ratio: .91
ROA: 12%
ROE: 18.37%
Much larger and more mature
firm
A safe investment with a
history of steady growth and
dividends
Probably won’t make
investors rich
Heavy reliance on fossil fuels
without much consideration
for sustainable energy
13. 2014:
47.06%
2015:
47.22%
2016:
205.26%
Analysts give a strong buy recommendation
This is because of PLUG’s high growth
prospects and maturation over the past year
14. PLUG’s stock price has been very volatile.
A spike in stock price can probably be
expected after an earnings announcement in
March.
Current stock price: $3.28
15. I recommend a long straddle position.
Buy equal amounts of calls/puts today with
the same strike price and expiration date one
day after PLUG’s earnings announcement
date.
With enough volatility leading up to that day,
investors can see huge profits and cover the
cost of both the calls/puts.
Call option price: $0.09
Put option price: $0.08
