$PLUG Tumbles After Analyst Pegs Fair Share Value At $0.50

Plug Power lost its spark today. Shares of the hydrogen fuel cell manufacturer fell more than 40% intra day after a prominent short seller wrote a scathing nine page takedown of the company calling $PLUG a “casino stock.”

$PLUG $BLDP $FCEL Pump is over. Can't say I feel sorry for anyone who chased this. Pure gambling. Wish I hadn't missed, but chase I did not.

— Bearfoot (@Bearfoot) Mar. 11 at 03:31 PM

Andrew Left, a short seller and editor of the Citron Research newsletter, said the $PLUG’s fair value is $0.50. It currently trades at more than $6.

Though the stock has a cult-like following, a la Tesla, $TSLA, $NFLX and, once upon a time $AAPL, Left said $PLUG does not have the great products and devout following of investors to warrant its share price.

Left pooh-poohed the company’s recent deal with Walmart as stemming from Walmart’s desire to take care of renewable energy tax credits, and not improved efficiencies from hydrogen fuel cell powered forklifts. Plug CEO Andy Marsh, who spoke at the Roth conference this afternoon, also failed to announce any new deals, disappointing some investors.

Left doubted Marsh’s claims on CNBC that the company would be profitable this year. “Profitability? Forget about it!” He wrote, adding later that “Anyone close to the story knows that Wal-Mart and Fedex, amongst a few other multinationals have been Plug Power customers for the past few years,” Left wrote. “The main reason is not because PLUG has built a better mousetrap but rather to take advantage of the 1063 Treasury Program that gives tax credits for renewable energy.”

Left also spoke on CNBC today, saying that the company has a history of missing guidance. “They also said they are going to be profitable last year and every other quarter,” Left said. $PLUG reported a $27 Million loss for the nine months ended in September. It will report earnings on March 13. Analysts expect a loss of $0.08 on $26.05 Million in sales, according to statistics on Yahoo Finance.

Some cashtaggers agreed with Left’s analysis.

PLUG 's own fillings state that they have little to no IP on their tech…..lmao..no barriers to entry in this mkt = stock worthless $PLUG

— SR5 Group (@SR5Group) Mar. 11 at 03:27 PM

Many more said Left’s commentary was too extreme. StockTwits’ sentiment analysis showed 84% of cashtaggers were still Bullish on $PLUG.

$PLUG has more cash on hand than the .50 valuation.. Citron went as extreme as he could.

— Trevor (@InvestINStars) Mar. 11 at 03:13 PM

$PLUG I would not expect PLUG to go up much after thur report after CNBC basher said PLUG hasn't met guidance in 5 yrs.

— Brian Rovan (@momoneynow) Mar. 11 at 03:13 PM

Still, few wanted to buy in now that the stock’s momentum was broken.

$PLUG catching a falling knife from a broken momo is worse then shorting a parabolic stock…both are TERRIBLE ideas

— SR5 Group (@SR5Group) Mar. 11 at 03:29 PM

Shares of Plug Power have risen more than 190% after it announced an expanded deal with WalMart on Feb. 10 to power electric forklifts at the retailers North American distribution centers. The company completed a secondary offering today of 3,902,440 shares of common stock. The shares were placed with a single investor, according to the SEC filing.

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