Plug Power Inc (PLUG) Plummets After CEO Backtracks On Deal Comments

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As of this writing, Plug Power Inc (NASDAQ:PLUG) shares have declined more than 20%, losing roughly two-thirds of the gains they posted yesterday. Those gains had been from some comments the company’s CEO made to MarketWatch, and today, he backtracked and said they those comments were misinterpreted and that the deal had been previously announced.

Plug Power’s deal explained earlier

According to Plug Power Inc (NASDAQ:PLUG) CEO Andrew Marsh, they already explained that deal in detail on March 13. He said he gave no new information when he spoke with MarketWatch recently. According to Bloomberg Businessweek, they’re working on “supplying fuel cell systems for electric forklifts used in factories and warehouses.”

Marsh also apparently pushed aside the report from MarketWatch on Tuesday which stated that he was expecting a major order from a U.S. automaker. However, MarketWatch listed the part about “an additional order in North America with a global automaker” in quotation marks, suggesting that those were the CEO’s exact words.

Clues from Plug Power’s conference

Street Insider reports that during Plug Power Inc (NASDAQ:PLUG)’s fourth quarter year-end conference on March 13, the company did make statements which seem to match up with Marsh’s new comments. Plug Power stated that it had received its “first GenKey order from a new auto manufacturing company.” It also said that it would provide an update over the next few weeks” after discussions with the customer’s marketing department.”

So in light of today’s clarification, it would sound almost like Plug Power Inc (NASDAQ:PLUG) would be making fuel cells for forklifts to use inside the “auto manufacturing” company’s warehouse. That would be quite a different proposition than if some investors though the company’s hydrogen fuel cells would be used for electric cars. Of course even a second major order for forklift battery cell would also be big news which would catch investors’ eyes.

Shares of Plug Power Inc (NASDAQ:PLUG) have been bouncing around for quite some time, and it doesn’t look like that will change any time soon.

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