September 30, 2023
The technology of the hydrogen fuel cells company¬†Company known as Plug Power (NASDAQ: Plug Power (NASDAQ:)¬†stock has been slashed, trading down (-44 percent) over the year.¬†The top turnkey, comprehensive¬†hydrogen fuel cell¬†(HFC) solutions Company’s shares were a part of the¬†green energies¬†in the last year and¬†E.S.G.¬†buzz, achieving a record high of $75.49 in January 2021 before sinking to $12.70 in May 2022.¬†A rise in energy¬†costs has drawn greater focus to renewable and clean¬†alternatives to energy.¬†On May 17,¬†Plu,g Power announced that it had signed one G.W. of contract from H2 Energy Europe for a hydrogen production plant located in Denmark that is set to be the world’s largest electrolyzer plant with the capacity to handle.¬†Plug Power is working to reduce its service costs by 45%, aided by implementing its eco-friendly hydrogen¬†network.¬†Prudent investors seeking exposure to the green hydrogen fuel cell sector will be able to spot opportunistic declines in the shares of Plug Power.

Fiscal Q1 2022 Earnings Release

On May 9, 2022, Plug Power announced its fiscal Q1 results for the quarter ending March 2022.¬†The Company reported an Earnings per Share (EPS) lower than ($0.27) without non-recurring items and was below consensus estimates from analysts for losses of (-$0.16) and (-$0.11).¬†Revenues increased by 95.7 percent over the previous year (YoY) up to $140.08 million, which was lower than consensus analysts’ $143.99 million estimate.

Conference Call Takeaways

Plug Power C.E.O. Andrew March stated that the economic environment has become difficult because of inflationary pressures and supply chain disruptions.¬†He also said that the future of Plug does not depend on the current economy but on the end.¬†He proclaimed that there is the potential for growth of 80% annually from a $10 trillion potential to green the energy sector.¬†The Company has determined to secure 1GW in electrolyzers in the coming year.¬†GenDrive’s performance can be scaled to exceed and meet the target.¬†GenDrive product has more than 30 percent gross margin.¬†The price of the new product will continue to decrease since the Company is undergoing the typical 20% learning curve associated with fuel cells and electrolyzers.¬†Learnings and services are being utilized to reduce costs for service by 45% after the launch of the green hydrogen network.

Seventy tonnes are expected to be in place at the end of the year.¬†The cost will be just one-third of what they are now.¬†The Company has an M.O.U.¬†with Olin Corporation to remove certain byproduct hydrogens.¬†President and C.E.O. March believes this alliance is critical in expanding its hydrogen network throughout the U.S. Olin Corporation can waste more than 350 tons of hydrogen daily.¬†It is less than $0.02 per kilowatt hour.¬†The Company aims to earn $3 billion in revenue by 2025. This will be accompanied by 20 percent EBITDA and 17% operating profit.¬†He concluded, “This is the equation for success. We’re building the category king, with clear strategic and tactical plans, and great employees that are unmatched in the industry. I’ve never been more positive about the fit between our strategic and tactical plans as I feel today.”

PLUG Opportunistic Pullback Levels

Utilizing¬†these charts¬†for daily and weekly time frames can provide a detailed overview of the market landscape for PLUG stocks.¬†The weekly rifle chart puts it at a bottom in the near term, close to $16.88. $12.67 Fibonacci (fib) level¬†.¬†The weekly chart of the rifles’ downtrend is characterized by a falling five-period Moving average (M.A.) resistance around $16.88, close to its weekly 200-period M.A. support level of $15.40. Then it falls to the fifteen-period M.A., which is $21.91.¬†This week’s low Bollinger Bands (B.B.s) are $11.78.¬†The weekly stochastic is stagnating in the range of 20 bands.¬†It is the week when the weekly¬†high of the market structure (M.S.L.)¬†buy results in a breakout of $17.20.¬†The uptrend in the daily rifle chart is beginning to weaken as the 5-period daily M.A. declines to the 15-period M.A. of $17.44.¬†The lower B.B.s of the day sits at $13.48 because the stochastic has made a mini inverse puppy dropping below the 80-band.¬†The B.B.s for the day’s upper levels are $20.53, while the 50-period M.A. drops to $20.95.¬†Beware of opportunities to pullback at $15.50, $14.25, $12.67 fib levels, $12.00, $10.89, $10.06 fib, $9.43, and the $8.03 price level.¬†The upward trajectories range from the $20.17 fib mark until the $25.59 fib mark.

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