Plug Power Inc (NASDAQ:PLUG) shares recently crossed into oversold territory and, as one Seeking Alpha contributor predicted, the stock is now on its next bull run. Of course the company did get some big-time help from a post on MarketWatch today, in which its CEO said they’re near to tying up their next big deal. And it doesn’t hurt that short interest hit a historical high of 39% of the float not too long ago, so there could be some covering activity going on right now.
It would seem like the stars have aligned for Plug Power Inc (NASDAQ:PLUG)
Plug Power to announce deal soon
According to the MarketWatch post, Plug Power Inc (NASDAQ:PLUG) expects to announce a major deal sometime in the next two or three weeks. Although the CEO did not give many details, he did say that they “signed an additional order in North America with a global automaker.” He also said they are expecting another deal like the one they signed with Wal-Mart Stores, Inc. (NYSE:WMT) this year to put their GenKey product into stores.
On Monday, there was a rumor that Plug Power Inc (NASDAQ:PLUG) signed a deal with Volkswagen AG (OTCMKTS:VLKAY) (ETR:VOW). However, a company spokesperson said their own work on fuel sells is being conducted in Germany. The person also said they were not aware of any fuel cell work being conducted with Plug Power.
Plug Power faces volatility
Initially, Plug Power Inc (NASDAQ:PLUG) shares rallied after the deal with Wal-Mart Stores, Inc. (NYSE:WMT), but then they plummeted after an extremely negative report from Citron Research. That report suggested that Plug Power was only worth 50 cents a share.
Because of this volatility, many investors have been making knee-jerk decisions about what to do with Plug Power Inc (NASDAQ:PLUG) shares. The stock had been overbought, but now, the RSI reading has fallen from 94 to 50. As Seeking Alpha notes, the last two times the Full Stochastics fell to their current levels under 20, Plug Power shares started a major uptick.
No insiders selling Plug Power
Another interesting thing about Plug Power Inc (NASDAQ:PLUG) is the fact that no insiders have been selling any of their shares on the open market since the beginning of the year. And this is in spite of the fact that the stock has risen as much as 500%. Even when shares climbed up to $11 apiece, no insiders sold any of their shares.
This is quite a different story from Facebook Inc (NASDAQ:FB), where insiders have gradually been unloading shares because the company’s stock price has been climbing.