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PLUG – Hot Penny Stocks: A Follow Up

A.J. Watkinson January 2, 2014 Hot Penny Stocks No Comments
PLUG – Hot Penny Stocks: A Follow Up

Well, I must admit a 50% pop in just a single day isn’t exactly what I thought would happen when I recommended PLUG.  I knew it would continue to move higher, but this is a bit more than I had expected… even for a penny stock.

In fact, if any of my subscribers bought the stock after reading my article published on December 26th, then you’ve done pretty well for yourself- congratulations on a great trade!

For those that missed this article, I pointed to the return of alternative energy stocks as the investment thesis of 2013.  If you recall, alternative energy stocks were abandoned for dead- at least until investors felt the promise of (or potential for) profit made headlines.  And that’s exactly what happened last year.

I also pointed out that a number of other alternative energy stocks made some pretty impressive recoveries- with the award for the biggest of 2013 hands down going to JinkoSolar JKS.

jks 122613

JKS climbed from a 52-week low of under $4.00, to trade just under $35 a share at one point last year.  That’s roughly a 700% gain!

With this group of stocks in mind, I pointed investors to one that recently broke out on good news…

PLUG – Plug Power

Plug Power is an alternative energy technology company that designs, develops, and manufactures fuel cell systems for industrial off-road markets (think forklift or other material handing vehicles).

H2 fueling GD1F

Plug Power primarily builds and sells a hydrogen-fueled Proton Exchange Membrane (PEM) GenDrive product.  PLUG’s client list includes:

  • Whole Foods
  • Firestone
  • FedEx
  • Mercedes Benz
  • Lowe’s Home Improvement
  • Walmart
  • Stihl
  • P&G
  • Coca-Cola
  • Sysco
  • Ace Hardware
  • BMW
  • Kroger
  • Wegmans
  • Carter’s

plug 122613

That was the chart before the January 2nd breakout.  Take a look at this penny stock now…

plug 010214 

So why did the stock move 50% in a day?

The revenue guidance provided by PLUG’s management in last month’s update advised investors that recent orders placed by some of their larger clients would boost fourth quarter revenue.  These clients were expected to sign in the company’s fourth-quarter ended December generating revenue $30 million to $40 million.

And today the company confirmed this is exactly what happened!

In a press release issued today, Plug Power reported Q4 revenue totaled $32 million, easily meeting this target.  Orders came from big clients including Walmart, Procter & Gamble, Kroger, Bridgestone, BMW, Sysco, Ace Hardware, CVS, Mercedes Benz, Lowes, and Coke.

Apparently we’ll learn more in the actual earnings release expected out in February.

For investors siting on gains in PLUG, or for those looking to buy shares of this company… what’s the next move?

I recommended this stock back at $1.73 per share, and at $2.43 (after today’s 50% move) I’d still recommend PLUG as a buy.  With that said, I wouldn’t blame anyone sitting on double-digit gains for taking some off the table.

I’m looking forward to February, when we’ll hear how the company’s earnings are improving.  I’d be willing to bet, given the improvements in the global economy, that most companies have stepped up their capital expenditure- making PLUG an excellent long-term play!

Keeping you one step ahead,

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A.J. Watkinson

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About The Author

A.J cut his teeth while working for more than 12 years on the corporate side of the financial services industry in the suburbs of New York City. In addition, A.J. has successfully traded stocks, options and currencies as an independent trader since the late 90's. Eventually A.J. moved out of the "rat race", landing in North Scottsdale, Arizona. During the past few years, he's worked as the editor of a number of high profile financial newsletters. In this role, he's run trading services for penny stocks, options, currencies, ETFs, and FOREX. While under his direction, each of these trading services had turned in positive performance... something very rare in the financial newsletter industry. In addition, he's been a regular contributor to a number of financial websites- writing under multiple pen names. A.J.'s current goal is to share his real world experiences and success (and failures) in the various financial markets to help others not only make money- but avoid losing it. It's this vision and passion that has led A.J. to launch pennystockreporting.com. Most of all, A.J. hopes to keep the little guy from getting caught up in the highly unscrupulous penny stock pump and dump scene.

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