Plug Power Inc (PLUG)’s GenFuel Could Be A Game-Changer

Plug Power Inc (NASDAQ:PLUG) shares tanked 6.60% on Wednesday after the company disappointed investors with its first quarter results. Its revenues fell 13% to $5.6 million. Quarterly losses widened from $8.6 million or 18 cents to $75.9 million or 57 cents per share. Plug Power took a $68.4 million charge related to its stock warrants. The company shipped just 165 GenDrive units during the first three months of this year.

Plug Power would be a big beneficiary of fuel cell car success

However, one thing that can change the fortunes of Plug Power Inc (NASDAQ:PLUG) is its GenFuel, the hydrogen gas pump for fuel cell vehicles. Fuel cell cars are about to hit the U.S. markets. Many large automakers including Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203) and Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267) are betting big on fuel cell technology. In fact, Toyota ended its deal with Tesla Motors Inc (NASDAQ:TSLA) simply because the Japanese company sees a future in the fuel cell cars market.

One of the biggest beneficiaries of fuel cell cars would be Plug Power Inc (NASDAQ:PLUG), says Daniel Jennings of Seeking Alpha. Honda Motor Co Ltd (ADR) (NYSE:HMC) and Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203) each aim to sell at least 1,000 units of fuel cell cars in 2015. Bob Carter, Toyota’s VP of automotive operations, believes that fuel cell vehicles could be as popular as Prius. Hyundai Motor Co (KRX:005380) has started leasing its fuel cell-powered Tuscon vehicles in Los Angeles. And Mercedes-Benz plans to start selling its F-Cell fuel cell cars by 2017.

Plug Power has expertise in hydrogen gas pumps technology

Fuel cell vehicles are environment-friendly, and they are likely to have much longer range than electric cars. According to Auto Week, Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203)’s F-cell sedan would go more than 300 miles on a tank of hydrogen gas. As far as hydrogen fueling stations are concerned, California government has already pledged $200 million to build hydrogen fueling stations.

If hydrogen fuel cell cars work as large automakers see a future in this market, there will be plenty of demand for hydrogen gas pumps. And Plug Power Inc (NASDAQ:PLUG) has expertise in this niche with its GenFuel.

Plug Power Inc (NASDAQ:PLUG) shares inched up 0.26% to $3.83 in pre-market trading Thursday.

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@valuewalk.com or on Twitter @VikShukla10

2 Comments on "Plug Power Inc (PLUG)’s GenFuel Could Be A Game-Changer"

  1. Forgot one other query I had. Nothing more has been said about Plug’s whistleblower regarding an alleged insider trader charge regarding that last share offering. An article stated that the Chicago law firm of Loevy & Loevy may be involved in the pursuit of such a charge and that the SEC allows privacy of whistleblowers and that they can get 30% of any award should the charges be proven. Two articles for you. I find writing about stocks really doesn’t take much research as most of it is just a mouse click away. It’s just sorting the debris and printing the facts.

  2. Glad to see the content of this article finally hitting the internet. I’ve rebutted those who say there’s no future in fuel cell powered cars and have mentioned Toyoto plans to unleash one on the market in 2015. I chided Trip Chowdrey of Global Equities when his remarks regarding this topic appeared a couple of weeks ago. I thought his remarks were unprofessional and in my opinion serving to short sellers. I believe Global Equities lists of clients include Morgan Stanley who was the lead in Plug Powers last share offering. I’m still waiting for an article explaining what the buyers of said shares had in mind when purchasing so many shares of a company that Global Equitites along with Citron bashed. Have they no respect for both opinions of highly touted publications? Does one buy huge blocks of share offerings with the intent of shorting the stocks or were they long on Plug? Was there a joining of effort in getting the price of Plug shares lower for short sellers? Vikus, how about an article addressing this strictly inexperienced suspicious mind?

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