Plug Power Inc (NASDAQ:PLUG) is a stock that has experienced a roller coaster of volatility in 2014, and the stock continues to hum on deal talk.
Plug Power Stock
After struggling to climb above $2 per share for most of 2013, the stock literally exploded in price in 2014, reaching a high $11.72 in March. The most recent surge in volume and price today is said to be due to a hydrogen fuel cell solution the company has been discussing.
In meetings with Plug Power Inc (NASDAQ:PLUG) executive Erik Hansen, major retailers such as Family Dollar, Wallgreens, HEB, Macy’s, PetSmart and Home Depot were said to have expressed significant interest.
“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,” said Hansen said in a statement posted on the web site. “There were lots of great questions during the Q&A session, especially pertaining to logistics and the value proposition brought about by installation of an on-site hydrogen infrastructure with GenDrive unit deployment.”
The meetings took place at the 2014 Green Retail Decisions Innovation Summit held in Chicago June 2-4. Speculation is developments outlined at this meeting were in the pipeline well before 2014, but that they started to materialize into reality that manifested itself at the summit.
At issue is replacing lead-acid batteries in the retailers distribution warehouse forklift fleets with efficient, zero emission hydrogen fuel cells. Investors, however, may be looking ahead of the market for forklifts and are considering integration into other solutions that might require hydrogen batteries, a deep and lucrative market.
Plug Power’s Earnings
Plug Power Inc (NASDAQ:PLUG) has gone through an up and down roller coaster. On May 15 the firm, reporting profits, lost 6.6 percent on the day as earnings disappointed. On that day, Plug Power reported a loss of 6 cents per share in the first quarter of 2014. The loss was slightly larger than the consensus estimate of 5 cents and was due to the higher cost of service revenues and an increase in selling, general and administrative expenses. Total revenues of $5.6 million were down 12.5% year over year. It could be that certain investors are looking past near term earnings and eying the potential for Plug Power to expand its market view.