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Originally posted by KGMani
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After 16 years of losses, Plug Power has finally arrived at a product that they can sell for a reasonable price that market can bear. Only question I have is... Can they meet the demand?
As we speak new R&D across USA will bring down the cost of manufacturing PEM fuel cells.
As we speak they are testing new ways of producing Hydrogen for about 2$ per KG from wastewater (California).. Mr.Market will have fun with it. Yes, Hydrogen from Our golden nuggets which goes as waste usually. in India we recycle them as manure for over 1000 years... LOL
Some day I will summarize before Mr.Market beats me to it... LOL
Here is a quick note from PLUG pitch..
Seeking ALfa has good post ..Positive (mr.WOlf) and lots of shorts...
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I will Pick PLUG at this level of 3.33 It is all about Hydrogen economy...
It is in a Niche Market of Fork Lift trucks, Range Extenders, TRU,
Consider these recent positive developments:
-Plug Power will reach profitability for the first time in its existence during the second quarter of 2014, an estimate that was just moved up by management (from second half of 2014). Keep in mind that Plug Power needs to sell 3,000 Gen Drive forklift units to obtain profitability, and expects to obtain 70% of this figure during Q1 of 2014 alone.
-Plug Power recently initiated a brand new business division, "the turn-key solution". Plug Power is now in the business of providing and installing the hydrogen infrastructure necessary for a distribution center to operate fuel cell appliances, and will also be constantly supplying customers with hydrogen with a five year service contract. One turn-key deal is expected to generate $8 to $12 million in revenue. This business of recurring revenues will add more predictability to Plug's earnings, and the company has already booked $10 million in sales for this division in 2014 (and growing).
--Plug Power is already in the midst of testing a fuel cell based Transportation Refrigeration Unit for Sysco (SYY), who operates a massive fleet of these trucks that carry just about every item you buy from your local grocery store. There are more than 300,000 TRU trucks operating in the US alone, and here's a directory list that points to more than 75 US companies that solely operate these trucks. CEO Andy Marsh commented during Plug's recent business update that he believes the TRU market will quickly surpass Plug's already established material handling market.
-Plug Power recently received $3 million in funding from the Department of Energy to develop and test fuel cell range extenders for 20 electric powered FedEx (FDX) delivery trucks. The fuel cell extenders can extend the range of FedEx trucks by more than 100%. The efficiencies and cost savings produced by these range extenders should be very appealing to efficiency freaks UPS and Fedex.
-Plug Power is currently demoing fuel cell prototypes with FedEx for ground support equipment (airport tuggers, auxiliary power units), with a target market of 26,000 units. The company has already received a $2.5 million grant from the DOE for this project.
-Plug Power is exploring options to set up a joint venture to establish a footprint in Asia, after receiving countless requests to provide its product to businesses operating in the far east. This would be similar to Plug's joint venture with Air Liquide. The ongoing health concerns stemming from Asia's rampant pollution makes this a perfect time for Plug to enter this expansive market, offering a compelling value proposition.
-The Hypulsion JV with Air Liquide is targeting the European market, which is even larger than the US market. More than 6 million forklifts are operating across the globe.
-Plug Power recorded $61.8 million in bookings for 2013, with 80% of those bookings being recorded in the last three months of 2013. Explosive growth.
-Plug Power has increased sales, and reduced costs quarter over quarter for the past four quarters.
After 16 years of losses, Plug Power has finally arrived at a product that they can sell for a reasonable price that market can bear. Only question I have is... Can they meet the demand?
As we speak new R&D across USA will bring down the cost of manufacturing PEM fuel cells.
As we speak they are testing new ways of producing Hydrogen for about 2$ per KG from wastewater (California).. Mr.Market will have fun with it. Yes, Hydrogen from Our golden nuggets which goes as waste usually. in India we recycle them as manure for over 1000 years... LOL
Some day I will summarize before Mr.Market beats me to it... LOL
Here is a quick note from PLUG pitch..
Seeking ALfa has good post ..Positive (mr.WOlf) and lots of shorts...
-----------
I will Pick PLUG at this level of 3.33 It is all about Hydrogen economy...
It is in a Niche Market of Fork Lift trucks, Range Extenders, TRU,
Consider these recent positive developments:
-Plug Power will reach profitability for the first time in its existence during the second quarter of 2014, an estimate that was just moved up by management (from second half of 2014). Keep in mind that Plug Power needs to sell 3,000 Gen Drive forklift units to obtain profitability, and expects to obtain 70% of this figure during Q1 of 2014 alone.
-Plug Power recently initiated a brand new business division, "the turn-key solution". Plug Power is now in the business of providing and installing the hydrogen infrastructure necessary for a distribution center to operate fuel cell appliances, and will also be constantly supplying customers with hydrogen with a five year service contract. One turn-key deal is expected to generate $8 to $12 million in revenue. This business of recurring revenues will add more predictability to Plug's earnings, and the company has already booked $10 million in sales for this division in 2014 (and growing).
--Plug Power is already in the midst of testing a fuel cell based Transportation Refrigeration Unit for Sysco (SYY), who operates a massive fleet of these trucks that carry just about every item you buy from your local grocery store. There are more than 300,000 TRU trucks operating in the US alone, and here's a directory list that points to more than 75 US companies that solely operate these trucks. CEO Andy Marsh commented during Plug's recent business update that he believes the TRU market will quickly surpass Plug's already established material handling market.
-Plug Power recently received $3 million in funding from the Department of Energy to develop and test fuel cell range extenders for 20 electric powered FedEx (FDX) delivery trucks. The fuel cell extenders can extend the range of FedEx trucks by more than 100%. The efficiencies and cost savings produced by these range extenders should be very appealing to efficiency freaks UPS and Fedex.
-Plug Power is currently demoing fuel cell prototypes with FedEx for ground support equipment (airport tuggers, auxiliary power units), with a target market of 26,000 units. The company has already received a $2.5 million grant from the DOE for this project.
-Plug Power is exploring options to set up a joint venture to establish a footprint in Asia, after receiving countless requests to provide its product to businesses operating in the far east. This would be similar to Plug's joint venture with Air Liquide. The ongoing health concerns stemming from Asia's rampant pollution makes this a perfect time for Plug to enter this expansive market, offering a compelling value proposition.
-The Hypulsion JV with Air Liquide is targeting the European market, which is even larger than the US market. More than 6 million forklifts are operating across the globe.
-Plug Power recorded $61.8 million in bookings for 2013, with 80% of those bookings being recorded in the last three months of 2013. Explosive growth.
-Plug Power has increased sales, and reduced costs quarter over quarter for the past four quarters.
Thanks again!
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