fbpx

Pull the Plug (on PLUG)

  • PLUG issues a going concern notice
  • Need to raise cash to survive the next 12 months

The hydrogen producer and fuel-cell maker crashed 47% since its earnings day last Thursday after the company not only missed top and bottom lines by miles but also included a “going concern notice” in its latest 10-Q report, indicating it might not survive the next 12 months unless it does “the usual” securities offering for which it is well known among seasoned traders.

A screen shot of a graph

Description automatically generated

Revenue came at 198.71M vs. 219.57M expected (-9.5% miss). Further, company losses jumped to 0.47 per share from 0.30 year-over-year, higher than the consensus of 0.30 per share loss. PLUG cited that it “has been negatively impacted by unprecedented supply challenges in the hydrogen network in North America.”

Cash & available-for-sale securities balance declined from $2 billion at the end of last year to around $500 million in the span of 9 months, or over $166m per month. If we extrapolate that cash burn rate, PLUG will run out of money in 3 months.

Hence, the company included a “substantial doubt about its ability to continue as a going concern” as PLUG expects its “existing cash and available for sale and equity securities will not be sufficient to fund operations ” over the next 12 months.

On top of that, PLUG’s expected government support through hydrogen tax credits was delayed.

The company was nearly $1600 at the start of the millennium. Since then, it has nosedived all the way down to $3.53 in early Monday trading.

The endless number of reverse splits, accompanied by an endless number of offerings, to satisfy the NASDAQ listing requirements so that it could tap into the debt and equity markets has resulted in an endless dilution cycle for shareholders.

A graph on a dark background

Description automatically generated

In the wise words of Mark Twain: “History never repeats itself, but it does often rhyme” or simply some things never change.

Investors can short PLUG using our -1x Plug Power .

Alternatively, they can long PLUG using our 1x Plug Power or 3x Plug Power .

Articles Similaires

Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Violeta-540x540-1.jpg
Violeta Todorova
Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Gold is in a healthy correction and higher price levels are likely by year end.
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Violeta-540x540-1.jpg
Boyan Girginov
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Supply, demand disequilibrium and lower US rates could squeeze the non-precious metal
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Violeta-540x540-1.jpg
Sandeep Rao
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Q2 is poised for European stocks’ turnaround and rising interest in energy stocks
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Violeta-540x540-1.jpg
Violeta Todorova
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.
Escalation of the conflict in the Middle East threatens to derail the economic recovery.

Violeta Todorova

Senior Research

Violeta a rejoint Leverage Shares en septembre 2022. Elle est chargée de mener des analyses techniques et des recherches sur les actions et macroéconomiques, fournissant des informations importantes pour aider à façonner les stratégies d’investissement des clients.

Avant de rejoindre LS, Violeta a travaillé dans plusieurs sociétés d’investissement de premier plan en Australie, telles que Tollhurst et Morgans Financial, où elle a passé les 12 dernières années de sa carrière.

Violeta est une technicienne de marché certifiée de l’Australian Technical Analysts Association et est titulaire d’un diplôme d’études supérieures en finance appliquée et investissement de Kaplan Professional (FINSIA), Australie, où elle a été conférencière pendant plusieurs années.

Julian Manoilov

Marketing Lead

Julian a étudié l’économie, la psychologie, la sociologie, la politique européenne et la linguistique. Il possède de l’expérience en matière de développement commercial et de marketing grâce à des entreprises qu’il a lui-même créées.

Pour Julian, Leverage Shares est une entreprise innovante dans le domaine de la finance et de la fintech, et il se réjouit toujours de partager les prochaines grandes avancées avec les investisseurs du Royaume-Uni et d’Europe.

Oktay Kavrak

Head of Communications and Strategy

Oktay a rejoint Leverage Shares fin 2019. Il est responsable de la croissance de l’activité à travers des relations clés et le développement de l’activité commerciale sur les marchés anglophones. 

Il a rejoint LS après UniCredit, où il était responsable des relations avec les entreprises pour les multinationales. Il a également travaillé au sein de sociétés telles qu’IBM Bulgarie et DeGiro / FundShare dans le domaine de la finance d’entreprise et de l’administration de fonds.

Oktay est titulaire d’une licence en finance et comptabilité et d’un certificat d’études supérieures en entrepreneuriat du Babson College. Il est également détenteur de la certification CFA.

Sandeep Rao

Recherche

Sandeep a une longue expérience des marchés financiers. Il a débuté sa carrière en tant qu’ingénieur financier au sein d’un hedge fund basé à Chicago. Pendant huit ans, il a travaillé dans différents domaines et organisations, de la division Prime Services de Barclays Capital à l’équipe de recherche sur les indices du Nasdaq (plus récemment).

Sandeep est titulaire d’un master spécialisé en finance et d’un master en administration des affaires de I’Institut de technologie de Chicago.

Gold Retreats But Rally is Not Over

Copper Ready to Explode

Q2 2024 Market Outlook: Rocky Road Ahead

What is an ETF? (Exchange Traded Fund)

How Do Leverage Shares ETPs Trade in Multiple Currencies

Currency Impact

Build your own ETP Basket
Leverage Shares: Europe’s top leveraged and inverse ETP provider.
Main ETP benefits
Common investor questions

Get the Newsletter

Never miss out on important announcements. Get premium content ahead of the crowd. Enjoy exclusive insights via the newsletter only