The stock dropped 21% after Plug CEO Andy Marsh told Bloomberg BusinessWeek that, contrary to reports, no new deals were in the pipeline. The stock had gained 49% Tuesday after MarketWatch reported that Plug would announce a new deal in the next two to three weeks. Some investors had speculated that Plug would announce a deal with Volkswagen (VLKAY). But Volkswagen denied the rumors.
-- Joseph (@Fuji31) Mar. 26 at 11:50 AM
Marsh told Bloomberg that the coming deal, initially referred to in a MarketWatch article and re-reported by business television networks, was the same one discussed on March 13 when the company announced fourth quarter and full year earnings.
During Plug's earnings call, Marsh had said that sales orders for 2014 already exceeded $60 million. He also said that the company received sales and maintenance orders from Kroger (KR), BMW and Mercedes-Benz (DDAIF). And he discussed the well-publicized deal with Wal-Mart (WMT) to roll out its GenDrive hydrogen cells to power electric lift trucks at the retailer's North American distribution centers.
Many cashtaggers blamed the media confusion on Marsh wanting to announce tentative agreements in the pipeline that are not ready for an official press release. They are buying Marsh's promise of hydrogen fuel cells entering a rapid growth cycle.
Plug sentiment remained 89% bullish, despite Wednesday's decline, according to StockTwits' analytics.
Others disagreed. They said they had come to view the PLUG as little more than a "casino stock" as pegged by Andrew Left, a short seller and author of investment newsletter Citron Research. Left argues that Plug will not be profitable this year, as promised by CEO Andy Marsh, and that the stock's fair value is $0.50.
Some formerly long cashtaggers even said they were selling out of positions and buying puts.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.