Fridays in the summer are always a great time to jam thin stocks. The fundamental news background is positive, though, in that the people are becoming more aware of how close many parts of the country are to hitting their electric power capacity limits. I happen to be long another fuel cell company, ERC, which has been trending up of late too, although not today. BLDP has been perking up as well, and picked up a buy recommendation from a new firm today.
Of course MKTY's Plug Power has little chance of ever succeeding in that business, for reasons I have discussed before. I don't believe it will ever come close to its cost targets, the potential market is much smaller than people fantasize for its home size units, the deal with GE is structured so that the latter will grab most of the profits if there ever are any, and other companies can probably make better PEM fuel cells at a cheaper price, so margins will be tight or non-existent. But it will take a while for people to realize that, and the stock could do well until then. As for the rights, the stock went ex that some time ago on a 1 for 16 basis. |
