NEW YORK (TheStreet) -- Downside in the fuel-cell provider Plug Power (PLUG - Get Report) has been fast and fierce, but selling could find limitations technically with major support seen at $3.75. At nearly $4, shares are up over 157% for the year to date.
Considering the recent "Down Goes Frazier" 47% fall in recent sessions, shares of PLUG could bounce hard as value investors once again focus on growth opportunities (i.e. stationary power, electric vehicles, stacked development, etc.), expanding relationships with Walmart (WMT), FedEx (FDX) and Kroger (KR) the fact the company's last quarter earnings report was a complete blowout. That last point may cause short-sellers, a group representing about 23% of the float according to Nasdaq data from April 15, to cover their positions.
For those willing to trade the expected volatility, the company next reports first-quarter 2014 earnings on May 14. Hopefully, management doesn't have too much diarrehea of the mouth and overhype. Rather, it needs to act like it has been in the endzone before. It needs to say something new and fresh when the company report earnings.
I would also like to hear management address the recent move by rival ClearEdge Power to file for bankruptcy, something that spooked shareholders of PLUG and even Ballard Power Systems (BLDP).
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts