It was one other tough day for Plug Energy (NASDAQ: PLUG) on Wednesday because the market turned south and buyers offered off each higher-risk property and power shares. Shares fell as a lot as 13.5% and have been down 13.2% at 3:30 p.m. ET.
Plug Energy is unraveling
Plug Energy is down 84% prior to now yr, and there isn’t any finish in sight to the drop. Not solely are losses piling up, money can be dwindling and there isn’t any anticipated bailout.
This has turn into a downward spiral for Plug Energy that will not cease. You possibly can see within the chart beneath that money ranges are dropping because the enterprise’ money burn picks up. Administration has beforehand used the corporate’s inventory to fill the money gap by promoting shares, however because the inventory worth drops that choice is probably not out there.
There are billions of {dollars} in bookings and potential orders, however these could take years to materialize, and the monetary problem is far more quick for Plug Energy. The corporate has even warned it is probably not a “going concern,” that means it could not have the power to fund the enterprise by itself.
A freefall that will not cease
Plug Energy has gone by tough instances earlier than, however the problem now could be that it has $200 million in debt and a enterprise that is consuming additional cash than ever. With out the power to lift extra debt or promote inventory, which will get tougher the decrease the inventory worth goes, this inventory could solely head decrease. That looks as if a motive to desert the inventory in the present day, if you have not already.
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Why Plug Energy Inventory Fell One other 13.5% Right now was initially printed by The Motley Idiot