Quick Wins by the Algorithm: Plug Power, Inc.

Quick Wins by the Algorithm

Plug Power, Inc. (PLUG): Long-term Capital Gains

In a recent stock analysis of Plug Power, Inc. (PLUG) published on TalkMarkets.com, I Know First’s senior analyst Ayush Singh discussed why he was optimistic about the algorithm’s bullish forecast despite years of maintaining a strictly bearish position on the stock. While he explains that he always advising shorting stocks with a record of non-profitability (as Plug Power, Inc. has for the past 20 years), he notes that there are some indicators that the algorithm’s forecast could be accurate.

On February 12th, the algorithm continued to show a bullish signal of 1.54 with a predictability of 0.13 for the 14-day time horizon. In just 2 weeks following this forecast and 16 days after the original article was published, PLUG share prices saw growth of 25.47% in accordance with the algorithm’s prediction.

Quick Win

Looking at the full period of time since the publishing of Singh’s article, the period from February 10th to the 29th, we see that the stock returned 33.33% overall. Based on the algorithm’s predictions, this growth may continue for the next year and into the future.

Plug Power, Inc. is an alternative energy technology provider with the goal of offering their customers productivity savings and help reduce carbon emissions in addition to providing them with reliable alternative power. The company’s focus is mainly on proton exchange membrane (PEM) fuel cell and fuel processing technologies and fuel cell/battery hybrid technologies. Previous bearish positions for this stock came from the company’s lack of profitability, but if they are able to consistently turn a profit they are certainly in an industry that will give them room to grow in the future.

As you can see from the chart below, the green 4.37, 8.40, and 4.68 forecasts for the respective time periods suggest that Plug Power’s shares will continue to move higher in the future. This suggests that Plug Power’s shares have bottomed, and the upside will be likely propelled by a good earnings report and a good guidance.

Quick Win

Plug Power reached its goal of reaching $100 million in annual sales in 2015 and is expected to continue its strong growth in 2016 as well. Although Plug Power is still operating at a loss, it can break even in the upcoming quarters. If the company is able to break even in the near future it will likely cause a significant boost to the stock’s current trading price, enabling the company to continue to grow.