Dallas, Texas 12/16/2013 (FINANCIALSTRENDS) – The last week performance of Plug Power Inc (NASDAQ:PLUG) was really very good and it scored in triple digits, but their stock value kept on dancing to different tune by Monday. The mid-morning performance saw a dip in overall 14% trading value. This 14% dip is one of the biggest for the fuel-cell developer in recent times. However before this decline the overall value increased by a 180 percent for 5 trading days. The company is confident of turning into a profitable firm by 2014.
The Street ratings team awarded D- score to the cell developing company and stated different reasons behind this weakness. Some of those reasons are notable poor returns on the equity and deteriorating net income. The overall net income of the Plug Power has seen a decline of almost 54 percent that lead to a decrease from $10.33 million to $15.90 million for the same quarter as compared to the last year.
What exactly Plug Power Inc delivers?
It is an alternate energy technology provider that designs, develops, manufacturers and commercializes the fuel cell systems for the industrial-off road market. Some special areas include proton exchange membrane, fuel cell, fuel processing technologies and hybrid technologies for cell and batteries. A fuel cell is basically an electromechanical device that combines hydrogen and oxygen and as a result electricity and heat is produced. The best part about this technology is that no heat is produced. The main source of hydrogen in this technology is done with the help of LPG, propane, methanol, gasoline, ethanol and biofuels.
This year in the month of May another company named Air Liquide SA acquired a 14 percent stake in Plug Power Inc (NASDAQ:PLUG). This is seen as a very important strategic move as the future is going to be based on fuel cell technology. Moreover the coal and oil reserves are also depleting very fast.