Here’s Why Plug Power Looks Appealing
Plug Power (NASDAQ:PLUG) is a company that has had a long history of high expectations and subsequent disappointment for investors. It has made many people rich and has clobbered others over the years. In the past two months, the stock is up about 700 percent. As such, the stock has always been about timing. We may have missed the first big move, but I think that on a pullback, the fundamentals are setting up nicely for continued returns.
The company works primarily on alternative energy technology. For the most part the business focuses on designing, developing, manufacturing, and selling fuel cell systems for machinery. The primary technology the company is involved in working on is fuel cell and fuel processing technologies. It also employs technology to produce fuel cell and battery hybrids. A fuel cell combines hydrogen and oxygen to produce electricity and heat without combustion and exhaust.
Big potential in the GenDrive system
The GenDrive system is one of Plug Power’s leading candidates for ensuring future profitability. Around 5,000 GenDrive-powered forklifts have been sold to date, and there is substantial room for growth. Plug Power’s technology could replace traditional batteries someday. One huge issue is that traditional battery life for machinery is short; batteries can’t keep up with the demand for usage. This can limit industrial productivity.