• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 hours New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 1 min Permafrost Melting Will Cost Us $70 Trillion
  • 2 hours UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 5 hours Russia To Start Deliveries Of S-400 To Turkey In July
  • 5 hours Occidental Offers To Buy Anadarko In $57 Billion Deal, Topping Chevron
  • 1 hour Nothing Better than Li-Ion on the Horizon
  • 5 hours Facebook Analysts Expect Earnings Will Reinforce Rebound
  • 22 hours Countries with the most oil and where they're selling it
  • 1 hour How many drilling sites are left in the Permian?
  • 9 hours ..
  • 22 hours Section 232 Uranium
  • 1 day Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 15 hours Iran Sabre Rattles Over the Straights of Hormuz

PLUG: Harness The Power Of A Steady Short Squeeze

Five weeks ago, fuel cell stocks, and Plug Power (PLUG) in particular were all the rage. At the end of February, Plug announced a huge contract with Wal-Mart for 1,738 of their GenDrive fuel cell units, to be deployed over the next two years. More importantly in the eyes of many, the deal also included a six year service contract.

For a company that had been struggling to gain mainstream acceptance for a disruptive technology, the blessing of the mighty Wal-Mart was a godsend and the stock reacted accordingly. PLUG closed on February 25th, the day before the announcement, at $3.90 and by March 10th had shot up to over $11…then came the crash. Renowned short sellers Citron released a scathing report that highlighted the fact that Plug had never made money in 10 years of existence. The bubble burst and PLUG plummeted to around half of that price.

As you would expect, the volatility continued for a while, with double digit percentage price swings seemingly every day and huge trading volume.

The three month chart above, though, shows that both in terms of volume and volatility, things have calmed down over the last few weeks. This has no doubt calmed the nerves of those that were holding the stock, but I suspect it may have those with short positions worried, and there are plenty of them. Short interest in PLUG stood at a whopping 30.4 million shares at the end of March, equal to around 21% of the company’s total market capitalization. For…




Oilprice - The No. 1 Source for Oil & Energy News