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Plug Power Inc (NASDAQ:PLUG): The Roller Coaster Ride Continues
Posted On 08 Apr 2014
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Denver, CO, 04/08/2014, (Avauncer.com) – Plug Power Inc (NASDAQ:PLUG) shares were trading as penny stocks few time back. But then things changed for better and the stock priced spiked to $10 in a short period of time. It is not something new with Plug Power. The trend of sudden rise and fall has been witnessed in the past too. This time the reason for spike in share price is probably the Tesla effect. The spike is not restricted to plug power but is coming true for everything that is connected to Tesla Motors Inc (NASDAQ:TSLA).
What is the model?
Tesla is keen to manufacture the batteries in large numbers and also wants to extend its business by selling the batteries to other automobile manufacturers. The same model is driving the shares of Tesla and the speculation is there that Plug Power Inc (NASDAQ:PLUG) can follow the trend. It is just a speculation and nothing has been confirmed from the company.
Speculation goes on
The stock is followed by a number of investors and trades at a high volume. Even slightest news or the speculation results in the momentum of stock. It is therefore considered as one of the highly speculative stocks. At one time in 2000 it had also traded at a price of $1,400 a share.
The real news
If the speculations come true in the coming future then the company will definitely benefit. It would be able to sell the fuel cells to the other market players. The probability of getting associated with an automobile player cannot be ruled out. At this time the company also acquired the assets of ReliOn Inc., a third-party maker of fuel-cell stack technology, for approximately $4 million. The news added to the momentum of Plug Power Inc (NASDAQ:PLUG). The deal has made Plug Power to have its own fuel cell stack technology that is going to have a significant positive impact on company’s performance in coming days.
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