Plug Power Opportunity Gets Better Every Day

Our thesis on Plug Power ($PLUG) is that the company has tremendous opportunity for sales on proven technology in the forklift market.  Their current Fortune 500 client list including Wal-Mart, Coca-Cola, and Mercedes illustrates the power of the product.  

In the last few days we have learned more information about the company that makes us even more excited about the company. 

First, the company reported customer success with lower-cost hydrogen production systems.  One of the barriers to conversion of a distribution center to a hydrogen-powered fleet is the cost to set up hydrogen infrastructure. These lower-cost systems will expand the market for Plug Power GenDrive fuel cells into smaller distribution centers, opening up an additional $1bn in opportunity for $PLUG. In addition of expanding the market, it confirms the superiority of the technology over lead-acid batteries. It also gets $PLUG closer to its goal of providing hydrogen solution for customers with only a few forklifts (Think local Walmart store as an example).

Second, we get this report from FuelCell2000 containing all kind of interesting information. I want to highlight here that Europe is about to get going with hydrogen solutions in a major way. $PLUG with its partnership with Air Liquide is well positionned to capitalize on this market allowing the company to surpass its treshold of selling 3,000 GenDrive units which puts the company in an EBITDA break-even position.

Fuel Cell Forklifts Gain Ground with permission from Jennifer Gangi.

What are your thoughts on Plug Power?

Disclaimer: Bigger Capital, LLC, Bigger Capital Fund, LP, Bachelier, LLC and the Bigger family hold about 3% of Plug Power. We intend to increase our position if the company's results confirm our thesis through time. 

Plug Power is a highly distressed situation and it is not suitable for the majority of investors. The likely outcome of an investment is a loss of principal. We have been wrong on many of our thesis before.  Please do your own research before investing.

Posted by Michael Bigger. Follow me on Twitter and StockTwits.