Giner manufactures PEM electrolysis equipment, a direct expertise that Plug has lacked. United Hydrogen, on the other hand, is one of North America’s largest privately-owned hydrogen producers. With these acquisitions, Plug is starting to have the entire “hydrogen chain” in hand, and they are a very important strategic acquisition.
In September 2019, Plug set ambitious targets for the year 2024.
After the acquisitions, the targets were raised as follows:
“Given these acquisitions, the Company is raising its 2024 financial targets to achieve $1.2 billion in revenue (up from $1 billion), $210 in operating income (up from $170 million), and $250 million in Adjusted EBITDA (up from $200 million)”
Great that it got its own thread! Big thanks to this forum, I bought it for 4.99 a couple of weeks ago and now I’ve made some nice gains. It was my first direct US stock. I hesitated too long with Nikola, but thankfully I acted with this one!
If you haven’t been following Plug for very long, this Amazon ownership stake is also a nice connection, in addition to them being a big customer of Plug.
Thanks for the thread. Being the smart guy I am, I sold my position when the insiders sold their holdings. Well, I did cash in some very good profits, but now it looks like I was a bit too hasty again.
But I’ll keep an eye on this, in case there’s another opportunity to jump in. There’s a lot of potential here.
Let’s put this from Australia from the end of last month here. Elvin Group is involved in that, but what’s interesting from Plug’s point of view is that Elvin and GinerELX have a collaboration. Plug did finalize its acquisition with GinerELX.
This tells us a lot about Plug’s position in the forklift sector.
“Plug Power products move 30% of the retail food and groceries through the United States, an increase from 25%, as a result of support provided during the COVID-19 crisis. In 2020, Plug Power’s hydrogen fuel cell (HFC) solutions will provide the power for middle-mile and last-mile delivery vehicles as well, improving the sustainability of the entire logistics chain. Improved efficiency, reliability, and cost efficacy—combined with access to fleet performance data—has continued to increase the adoption of HFCs in the food logistics space: 32,000 fuel cell-powered forklifts have completed over 27 million hydrogen fills. Plug Power enables customers of all sizes, including leading retail giants like Walmart and Carrefour (France), to reach new heights in facility productivity with affordable, efficient, and clean hydrogen and fuel cell power.”
{“content”:“This is one of those stocks that seemed to be running away early in the year, then I just sat on my hands during the dip. For a long time, it hovered around $4, and still, I didn’t have enough faith to research more… I guess I have to swallow the situation and buy at least a small position, even though it feels bad when I could have gotten it 55% cheaper a month ago. It just feels like if a month ago this had 3 years of expectations loaded into it, now it’s at least 6 years. But it’s usually the case that a company that constantly raises its forecasts is a much more profitable investment than a company whose forecast raises are still being awaited (turnaround companies). Of course, at that point, you have to pay more when the good news starts accumulating.”,“target_locale”:“en”}
I think we can. Also, the CEO has said in an interview that corona has increased activity from their perspective. Plug does not publish trade releases in the same way as NEL. Andy Marsh, if I recall correctly, stated that they only publish really big/significant deals, as small deals are constantly happening in the background.
In connection with the acquisitions, the longer-term (2024) revenue targets were raised from $1 billion to $1.2 billion, and adjusted EBITDA from $200 million to $250 million.
Hopefully, recruitment won’t become a bottleneck for growth. Quite a few positions open.
That hydrogen hype from the early 2000s was insane. Plug’s peak was in March 2000, with the highest quotation at $1498. The market cap was around $6 billion then, and revenue was around $8 million. So, the valuation multiples were indeed stretched.
Of course, one could say that the situation is completely different now.
PLUG is a very interesting case for me. I haven’t invested directly in the hydrogen sector yet, and PLUG seems to be the broadest hydrogen stock in the sector, also having proven business operations. I can imagine that a larger player like this, which also has business operations, will benefit from government subsidies when countries start investing in hydrogen infrastructure.
Many people seem to have an entire portfolio dedicated to hydrogen. What do you think, could I get into the game fairly comprehensively just by owning Plug? I’m also thinking of adding Nel at some point when my own cash reserves expand.
As with all investments, diversification pays off. According to NEL, too. Today, the EU should provide more information/guidance on how hydrogen will be an important energy source in the future.
NEL really does have the entire hydrogen chain under control, so my vote goes to them if I had to choose someone. Plus, they seem to have their tentacles everywhere.
Plug, especially after the acquisitions, is starting to be very comprehensive in its operations, and it certainly has proven operations in its background (material handling).
Europe’s hydrogen strategy has already been released, but discussions about it could be held in the energy chain.
Plug is also involved in Europe through Giner ELX, so I believe that Plug will also get a slice of that!
Well, I guess I should be happy about the extra -10%. Let’s just hope the wild sledding doesn’t continue now that many who aren’t so familiar with the plug might get scared and throw all their shares away. But in the long run, it’s a no-brainer
I guess I have to swallow the situation and buy at least a small position, even though it feels bad when I could have gotten it 55% cheaper a month ago. It just feels like if a month ago this had 3 years of expectations loaded into it, now it’s at least 6 years. But it’s usually the case that a company that constantly raises its forecasts is a much more profitable investment than a company whose forecast raises are still being awaited (turnaround companies). Of course, at that point, you have to pay more when the good news starts accumulating.”,“target_locale”:“en”}
