$PLUG Power Inc Bullish pre earnings Entry level $3.10 = Target price $4.70 = Stop loss $2.90
Alert set for break above $3.00
Short interest is high at 18.48% can help sustain a rally .
Long term channel is currently acting as resistance, but indicators are in a bullish trajectory with room to run higher.
The stock can be subject to large swings given its appeal to penny stock traders, so profits should be locked in on any rally.
Company profile
Plug Power, Inc. provides alternative energy technology, which focuses on the design, development, commercialization, and manufacture of hydrogen and fuel cell systems used primarily for the material handling and stationary power markets. Its fuel cell system solution is designed to replace lead-acid batteries in electric material handling vehicles and industrial trucks for some distribution and manufacturing businesses. The company was founded by George C. McNamee and Larry G. Garberding on June 27, 1997 and is headquartered in Latham, NY.
(Seeking alpha article)
Plug Power is a market leader and has a strong first-mover advantage in a big growth market. With the push by governments to tackle environmental issues, corporations are under pressure to make their operations more environmentally friendly.
France and the United Kingdom are two examples of governments that have moved to phase out combustion vehicles. France has moved to ban sales of petrol and diesel cars by 2040. This announcement was made a day after the Swedish automaker Volkswagen (OTCPK:VWAGY) announced a plan to only make electric or hybrid vehicle from 2019. The U.K. echoed the French plan and have committed to banning all sales of petrol and diesel cars by 2032. This is now becoming commonplace in cities with Copenhagen banning diesel cars in 2019 and Paris planning to ban all petrol and diesel cars from the city by 2030.
Deloitte has stated that EV sales were 2 million units in 2018 and expect this to rise to 4 million in 2022, and as high as 21 million by 2030. The company also sees this rise made easier with their prediction that a tipping point will occur around 2022 when the cost of owning a BEV is on par with its combustion rivals. BEV sales are expected to be 70% of the market by 2030.
Growing demand from consumers, alongside continued innovation and technology investment from original equipment manufacturers (OEMs) will accelerate EV adoption. Indeed, if the current hysteria around climate continues then we can expect that "car shaming" of petrol and diesel owners will push sales further.
