Why Plug Energy Inventory Fell One other 13.5% As we speak

It was another rough day for Plug Energy (NASDAQ: PLUG) on Wednesday because the market turned south and buyers offered off each higher-risk property and vitality shares. Shares fell as a lot as 13.5% and have been down 13.2% at 3:30 p.m. ET.

Plug Energy is unraveling

Plug Energy is down 84% previously 12 months, and there is no finish in sight to the drop. Not solely are losses piling up, money can also be dwindling and there is no anticipated bailout.

This has develop into a downward spiral for Plug Energy that won’t cease. You possibly can see within the chart under that money ranges are dropping because the enterprise’ money burn picks up. Administration has beforehand used the corporate’s inventory to fill the money gap by promoting shares, however as the stock price drops that option may not be available.

PLUG Free Cash Flow Chart

PLUG Free Money Stream Chart

There are billions of {dollars} in bookings and potential orders, however these could take years to materialize, and the monetary problem is rather more speedy for Plug Energy. The corporate has even warned it will not be a “going concern,” which means it might not have the power to fund the enterprise by itself.

A freefall that won’t cease

Plug Energy has gone via tough instances earlier than, however the problem now’s that it has $200 million in debt and a enterprise that is consuming extra cash than ever. With out the power to boost extra debt or promote inventory, which will get tougher the decrease the inventory value goes, this inventory could solely head decrease. That looks like a cause to desert the inventory as we speak, if you have not already.

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Travis Hoium has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure policy.

Why Plug Power Stock Fell Another 13.5% Today was initially revealed by The Motley Idiot

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