Is the hydrogen boom about to start? Companies or so-called „Pure Players“ such as Nel Asa or Plug Power are currently offering seemingly low prices or even the lowest prices. Should one get in?

Plug Power: The numbers were – bad! In this case, it was worth it for you at least to wait until the numbers came to the market. Plug Power’s quarterly numbers came out last Thursday evening. These allow conclusions to be drawn both about what is happening at Plug Power and about other companies in the industry, such as Nel Asa.

Plug Power has disappointed significantly. Plug Power’s revenue was only slightly higher than the revenue for the same quarter (3rd quarter) from the previous year. However, the company has missed analysts‘ expectations by more than 10% – just on revenue. This is not completely unusual in terms of the development of a growth company. However, Plug Power always has such disappointments in its repertoire. The message is: It is not progressing as quickly as expected.

Plug Power is also working significantly less profitably – or here rather: clearly loss-making – than expected. Last year, the loss per share in the third quarter was $0.30. For the current year, analysts have given some leeway and expected a loss of $0.31 per share. In fact, Plug Power missed all expectations with -$0.47 per share. The company is not profitable. Similarly, though not quite as dramatic, Nel Asa recently described its situation.

The industry is not making much progress The hydrogen industry is not making much progress. Technically, the solution is not yet perfect. The hoped-for effect as an energy transmission belt (green hydrogen could, for example, serve as a transport medium for solar or wind energy, provided it is first transformed into hydrogen on site) is far from being relevant.

Hydrogen is also not currently being perceived as an independent driving force – in the form of hydrogen-powered vehicles. In addition, the pure players are primarily generating the revenues that would be necessary to produce faster growth.

Against this background, no relief is visible. Plug Power, to bring in the company that has just reported, appears particularly vulnerable. CEO Andy Marsh has suggested that Plug Power could even need fresh capital. The response of the stock markets: On Friday, Plug Power lost more than 40%. The start of the new week was hardly better. Initially, it went down another 4-5%. I personally do not see an entry price for you!

Plug Power: Sell-off! Ticker: A1JA81 – ISIN: US72919P2020 Source: https://fundamental.aktienscreener.com/US72919P2020/EI/plug-power-inc/data

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