Don’t Buy Into Plug Power Just Yet – 5/19

Company: Plug Power (SYM: PLUG)

Beaten-down shares of Plug Power (SYM: PLUG) jumped earlier this week.

All on news it received a U.S. government loan guarantee of up to $1.66 billion. That will be used to help PLUG advance the development of six green hydrogen production facilities.

“Green hydrogen is an essential driver of industrial decarbonization in the United States,” said Plug Power CEO Andy Marsh. “Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants.”

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Marsh added, “We appreciate the partnership with the DOE Loan Programs Office and are pleased to have worked through an intensive due diligence process. The loan guarantee will prove instrumental to grow and scale not only Plug’s green hydrogen plant network, but the clean hydrogen industry in the United States.”

So, does that mean you should run out and buy PLUG today? Nope.

Instead, we’d sit on the sidelines and wait for signs of profitability first.


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