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.
(PLUG) and the roller coaster heads back down. Might buy 6.20's and hope for another 7 retest later on.-- 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.