Friday, November 14, 2014

* Plug Power (PLUG) - Did PLUG Just Drop a Bomb on Itself?

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Before you read this article please note one hugely important fact:
I am digesting this new information in real-time so I may make conclusions that are mistaken. Due your own due diligence -- this is a very fast reaction to what appears to be important news.
NB: While the 10-Q was just filed, the information in the 10-Q has been known for months.

I penned an article this week on PLUG, published via MarketWatch:
Opinion: 2 most important things to look for in Plug Power’s earnings

In that article I wrote:

Operating revenue per dollar of operating expense
If revenue is the single most important measure, this is the second. For every dollar in operating expense, Plug Power generates only $0.55 in revenue. A company must, at a minimum, earn $1 in revenue for every $1 in expense, and Plug Power is nowhere near that mark.

This ratio needs to improve — fast — or Plug Power may find itself selling more stock to fund operations.

PLUG just filed their quarterly filing, called a 10-Q.

Here's a snippet:

At our annual meeting of stockholders held on July 23, 2014 our stockholders approved an amendment and restatement of the Plug Power Inc. 2011 Stock Option and Incentive Plan to, among other things, increase the number of shares of our common stock authorized for issuance under such plan from 6,500,000 to 17,000,000.

At our annual meeting our stockholders also approved a Third Certificate of Amendment to our Amended and Restated Certificate of Incorporation to increase the number of authorized shares of our common stock from 245,000,000 shares to 450,000,000 shares.

And the link to the entire 10-Q: PLUG 10-Q

And a link to a full story pre-earnings here:
PLUG - The 8 Charts That Bring Knowledge and Silence the Bull vs. Bear Megaphone

This is trade analysis, not a recommendation.

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