This article was originally published by GuruFocus on April 21, 2014.
By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
This year, the markets have witnessed the rise of fuel cell makers, some of whom nearly went bankrupt during the dot-com bubble of the 2000s.
Leading from the front is Plug Power (PLUG), which sells fuel cell systems for electric forklifts. Over the last 12 months, Plug Power has been the best performing stock on the Nasdaq.
The company was formed in 1997 and went public in 1999 at $15 per share. Amid the dot-com bubble and the hype surrounding the fuel-cell stocks, the company’s shares soared and rose to unbelievable heights, a little below $150 per share in the early 2000s. Consequently, the bubble burst and Plug Power’s stock crashed.
However, over the last 12 months, the company’s stock has skyrocketed once again, rising by more than 4,500%. But its shares are still trading at just $7.32, well below its IPO price.
This time, Plug Power’s future prospects aren’t misplaced. The company has acquired a fuel-cell stack maker and has received a number of new orders, including a record order from Wal-Mart (WMT) and an automaker. Moreover, Plug Power is also eying entry into new areas. As a result, the company, which has so far consistently reported losses, is eyeing profitability by the end of the current year.
The company is hosting a conference call today to discuss business updates. The markets are expecting positive commentary which has caused a more than 4% surge in its shares in pre-market trading. Read full article at GuruFocus