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Plug Power (NASDAQ:PLUG) Flying High Since Amazon Deal

Plug Power (NASDAQ:PLUG) remains up 65% after announcement of Amazon deal at the beginning of April.

PLUG took off at the beginning of March, moving up 38% over the course of the month before pulling back slightly at the beginning of April.

Then, news about the deal with Amazon broke, and the stock gapped up 83% overnight bringing a number of new investors.

The stock has remained strong above the 200 Day Moving Average with a small pullback since the beginning of May due to a negative research report.

However, investors remain confident as last week, PLUG ran again from $1.85 to $2.07 and looks to be continuing to hold those gains.

PLUG appears to be breaking out above its 50 Day Moving Average again and could be building new momentum as it heads into its annual shareholder meeting at the end of the month.

Source: StockCharts.com

On May 9th, PLUG announced Q117 earnings results and here are the highlights:

Business Update

  • Signed Amazon agreement for multi-site GenKey deployments and technology collaboration; representing approximately $70.0 million in 2017 revenue
  • Shipped first commercial ProGen engines for integration into electric vehicle range extenders associated with FedEx program
  • Introduced next-generation versions of two Class 2 GenDrive units that will further reduce costs and improve performance and reliability

Financial Results

  • Total GAAP revenues of $15.2 million
  • Completed $65.0 million in new contract bookings
  • GAAP earnings per share loss of $0.13 on a diluted basis
  • Deployed two PPA sites, in line with expectations
  • Confirmed full-year 2017 guidance, including GAAP revenue of $130.0 million
  • GAAP gross margins within the range of 8% – 12% and total cash used of $25 – $35 million

Plug Power (NASDAQ:PLUG) Company Overview

Plug Power (NASDAQ:PLUG) is the architect of modern hydrogen and fuel cell technology having taken hydrogen and fuel cell technology from concept to commercialization.

PLUG has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable, cost-effective way.

Its GenKey solution couples together all the necessary elements to power, fuel and serve a customer.

With proven hydrogen and fuel cell products, PLUG replaces lead acid batteries to power electric industrial vehicles, such as the lift trucks customers use in their distribution centers.

Extending its reach into the on-road electric vehicle market, PLUG’s ProGen platform of modular fuel cell engines empowers OEMs and system integrators to rapidly adopt hydrogen fuel cell technology.

ProGen engines are proven today, with thousands in service, supporting some of the most rugged operations in the world.

Recent PLUG Milestones

PLUG has been working to create business opportunities for its GenKey technology and ProGen engines through large commercial partnerships:

  1. May 2017 – Announces first quarter 2017 results (see news release)
  2. April 2017 – Sign agreement for multi-site GenKey deployments in select Amazon fulfillment centers  (see news release)
  3. February 2017 – Ships first production Progen engines for electric vehicle range Extenders (see news release)
  4. January 2017 – Names Young’s Market Company as GenKey customer in Phoenix (see news release)
  5. January 2017 – Exceeds 2016 GenDrive deployment goals (see news release)

PLUG Management Team

PLUG is led by an experienced leadership team which has proven successes in developing and commercializing fuel and energy technologies.

Andy Marsh
President and Chief Executive Officer

Andy Marsh joined PLUG as President and CEO in April 2008. Mr. Marsh plans and directs all aspects of the organization’s policies and objectives. He is focused on building a company that continues to leverage Plug Power’s combination of technological expertise, talented people and focus on sales growth to position the Company as a leader in the future alternative energy economy.

Tim Cortes
Vice President, Hydrogen Energy Systems

Tim Cortes joined PLUG as Vice President of Hydrogen Energy Systems in January of 2015. In this role, Mr. Cortes is responsible for overseeing the GenFuel business, including interactions with customers, partners and suppliers critical to increasing Plug Power’s growing market share within the hydrogen fuel industry.

Paul Middleton
Chief Financial Officer

Paul Middleton joined PLUG as Chief Financial Officer in 2014, bringing a proven background in strategy, mergers and acquisitions, controls and risk management for manufacturing and technology companies.

John Cococcia
Vice President, Business Development and Investor Relations

John Cococcia has spent nearly 20 years working with early and growth stage companies as an investor, board member, advisor and advocate. As a deeply involved member of the PLUG team, Mr. Cococcia focuses on issues such as strategy development and execution, venture and growth financing and strategic positioning and partnerships.

Keith Schmid
Chief Operating Officer

Keith Schmid joined PLUG as Chief Operating Officer in 2013, bringing more than 24 years of experience in the fields of industrial power systems and energy storage. Mr. Schmid is responsible for the day-to-day operations of the corporation.

Jose Luis Crespo
Vice President, Global Sales

Jose Luis Crespo joined PLUG as Vice President of Business Development and International Sales in 2014. He was promoted to Vice President of Global Sales in January of 2015. In this role, Mr. Crespo assumed all responsibilities for the global sales strategy, sales growth and market entry for Plug Power’s GenDrive and GenSure brands.

Gerard L. Conway, Jr.
General Counsel

Gerard Conway joined PLUG as Associate General Counsel in 2000 and was promoted to General Counsel and Corporate Secretary in 2004. As General Counsel and Corporate Secretary, he is responsible for advising the Company on legal issues such as corporate law, securities, contracts, strategic alliances and intellectual property.

Conclusion

PLUG’s chart is showing strength and a bullish indication to more upside.

The Amazon deal is massive for PLUG comprising over 50% of its projected 2017 revenue. As the deal proves itself, there could be the possibility of additional rollouts to more fulfillment centers in the future.

Keep watching PLUG as it continues to execute its business plan and create more deals for its fuel and energy solutions.

Disclosure: We have no position in PLUG and have not been compensated for this article.

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