Hot-button hydrogen fuel cell company Plug Power (NASDAQ:PLUG) is one of the most debated companies on financial message boards. Traders, analysts and onlookers either seem to love or hate PLUG stock.
I’ve been guilty of taking both sides of the fence on PLUG stock. As a contrarian, I liked it when the share price dipped, then advised caution after the price soared.
There’s been another price dip now, so this could be an ideal time to get back into PLUG stock. Whether you like the company or not, as traders we must acknowledge that timing is everything in the markets.
And the timing looks pretty darned good right now for a long position in PLUG stock. Not only has the share price come down somewhat, but Plug Power hasn’t slowed down the pace of its hydrogen-centered innovations.
A Closer Look at PLUG Stock
Are you nimble enough to handle the ups and downs of PLUG stock? For long-term holders, an essential part of your plan should be to avoid getting shaken out when the price dips.
I’ll give you a recent example of this. The PLUG stock price fell from $9.98 on July 6 to $7.71 on July 31. While this was taking place, it felt as if the share price would never stop falling.
As it turned out, however, that’s wasn’t the time to sell. If anything, it was a chance to add to your position in anticipation of higher prices. And indeed, higher prices were just around the corner as PLUG stock rocketed up to the $14 area in early September.
Then came another dip. Will you pass the test this time around, or will you get shaken out of the tree? PLUG stock is at $12.94, offering current shareholders an opportunity to augment their holdings. Meanwhile, new investors can take a starter position in PLUG and hold on for the ride.
British Invasion
Do you think of Plug Power as an international company? You really ought to, as Plug Power is staging a major foray into the European market.
To be more specific, the company is partnering with Asda, a supermarket based in the United Kingdom. In this collaboration, Plug Power will supply hydrogen fuel cells, hydrogen, hydrogen fueling equipment and service to help power Asda’s trucks.
Noting the significance of this partnership, Plug Power commented, “This new customer continues Plug Power’s growth in Europe and represents the first deployment at scale of hydrogen fuel cell technology for material handling within the U.K.”
To underscore the magnitude of the agreement, it’s worth mentioning that Asda is the U.K.’s third-largest supermarket retailer. Moreover, Asda is a subsidiary of none other than retail leviathan Walmart (NYSE:WMT).
Entering the Drone Zone
With Plug Power pushing its innovative drive to the limit, you just never know where you’ll see the company’s hydrogen-centered solutions next.
In fact, not long ago, Plug Power disclosed that it’s developing “a new 1kW ProGen fuel cell system intended for small scale robotics, automatic guided vehicles (AGVs), unmanned aerial vehicles (UAVs), and other aerospace applications.”
Or, to put it more concisely, Plug Power’s new ProGen system will hopefully be able to power a broad range of cool gadgets, including small robots and drones.
All of this will be possible through Plug Power’s rugged yet lightweight single-kilowatt fuel cell system. By design, it’s built “to deliver extended flight endurance and run times under the most demanding operating conditions.”
So, you’d better prepare yourself for a future involving clean-fueled drones. It’s coming whether you like it or not, and Plug Power is helping to make it a reality.
The Bottom Line
Investors must learn to deal with PLUG stock’s volatility and its tendency to have quick price dips. If you’re a nimble trader, you can capitalize on those price moves.
And if you believe in Plug Power’s future-facing vision for clean fuel technology, there’s no reason to get shaken out when the share price wobbles.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.