Sunday December 17, 2017

PLUG- Hot Penny Stocks

A.J. Watkinson December 26, 2013 Hot Penny Stocks No Comments
PLUG- Hot Penny Stocks

It’s been a long time coming, but alternative energy stocks are finally breaking out of their multi-year funk.   Many of the problems for solar, wind, hydrogen and other alternative energy penny stocks started when the overall markets slumped years ago.

Let’s take a quick look back…

The headwinds for alternative energy investors have been multi-faceted.  For starters, many of these industries failed to show neither profitability without subsidy, nor a full-fledged buy in by governments, business, and consumers.

Then there was the oversupply issue that simply cratered the solar industry.  China started selling solar components to US companies below cost just to gain market share.  The problem was, US solar manufacturing companies couldn’t do the same and these stocks crashed hard- dragging all alternative energy stocks down with them.

In the end, alternative energy stocks were abandoned for dead- at least until some consolidation and/or potential for profit returned.

Welcome to 2013, and the return of the alternative energy stock. 

One of the greatest comebacks of the year had to be JinkoSolar- JKS.

jks 122613

With some support by the Chinese government, and actual improvements in profitability (not to mention some short covering)… JKS has risen from a 52-week low of below $4.00, to trade just under $35 a share at one point this year.  That’s nearly a 775% gain in under a year!

Obviously JKS is no longer truly a penny stock and not something I’d be recommending you buy.  However, I’ve found another alternative energy penny stock that has just started to break out- and I think it has a long way to go yet!

PLUG – Plug Power

plug 122613

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).  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

And that’s just some of the names you know…

The point here is that PLUG has a real product they sell to very real clientsSo why then is this company trading at under $2?

Remember, earlier I told you the whole alternative energy investment thesis was dead over the past 5 years.  And any alternative energy company must now prove it’s near profitability to even be considered worthy.  Simply having cutting-edge technology just isn’t good enough any longer.

Well PLUG has done just that.

The company updated revenue guidance to reflect recent orders by some of their larger clients.  These clients are expected to sign in the company’s fourth-quarter ended December which will generate $30 million to $40 million in revenue.  And this will create a recurring revenue stream over a multi-year agreement.

The upside here is compelling.  Given PLUG’s best-in-class product and continued growth we’re seeing in the global economy, there’s a good chance we’ll continue to see press releases in which PLUG is renewing contracts and generating new orders.

And at just $1.73 per share, it’s fair to say PLUG looks undervalued!

Keeping you one step ahead,




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 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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