Reflecting On Our $PLUG Thesis – What Did We Learn?


As we cast our gaze back to 2013, a pivotal year for our analysis, we are reminded of the intriguing dynamics surrounding Plug Power ($PLUG). Our insights (By Michael Bigger) from that time resonate with the understanding of a moment when the company’s trajectory was marked by both promise and challenges.

The Company’s Realities

In 2013, we explored the world of Plug Power, a company with tangible products, actual revenues, and established customer relationships. Amidst its financial constraints, the company’s offerings held potential for not just the present, but also for the evolving landscape of technological applications. The seeds of our analysis lay in understanding the intricacies of Plug Power’s business and the far-reaching implications of its offerings.

The Business and its Applications

We recognized Plug Power’s role as a premier system integrator in the burgeoning Proton Exchange Membrane (PEM) fuel cell market. While the potential applications of PEM fuel cells, including powering cars and trucks, lay on the horizon, Plug Power had strategically positioned itself with a commercially viable application. The GenDrive, a PEM power alternative for forklifts, was making waves in our nation’s warehouses, resonating with its ability to enhance productivity, lower costs, and offer green solutions.

Market Dominance and Strategy

Plug Power’s prowess in the forklift market was evident, dominating about 95% of hydrogen-powered forklift trucks in the USA. The company’s strategy was clear – establish a strong footing in the forklift arena while keeping an eye on emerging markets that could be conquered horizontally. The expansion into new markets, while leveraging its existing technology, was a testament to its innovative approach.

Real-World Impact and Rescues

We noted Plug Power’s clients, a roster that included some of the best and biggest companies globally. The real-world impact of its solutions was undeniable. However, 2013 also brought challenges. A botched financing attempt in February led to customer concerns and dwindling demand. The situation seemed precarious.

The Catalyst and Reassurance

Then came May 8, and with it, Air Liquide’s investment of $6.5 million in Plug Power. This strategic move injected new life into the company and restored customer confidence. The investment by a major player in the industry acted as a catalyst, bringing back the company to its success track.

A Vision Realized

Our analysis, looking back, showcased a snapshot of Plug Power’s journey. We recognized the value in a company with a proven technology, a notable customer base, and a dominant position in a growing industry. As we weighed the market capitalization against the vast potential, it was evident that Plug Power embodied a vision that could not be easily replicated.

Concluding Thoughts

As we reflect on our 2013 insights, we understand that Plug Power’s story continued to unfold in ways that captured both triumphs and setbacks. The dynamics of the business world, like the ebb and flow of tides, were at play. We look back with appreciation for the journey we embarked upon – a journey that revealed the intricate layers of a company with real-world impact, innovation, and the capacity to shape industries. The 2013 analysis was a chapter in the company’s ongoing narrative, reminding us that the business landscape is a tapestry woven with both planned strategies and unforeseen events.

Again, this is something we don’t see a lot of forex prop firm traders doing in this day and age, using real world impact to identify trading opportunities. In fact, fundamental analysis seems to be completely forgotten and not even mentioned in the majority of online forex trading courses, which is why most trading strategies fail, ultimately.

Kyle Townsend

Kyle Townsend is the founder of Forex Broker Report, an experienced forex trader and an advocate for funding options for retail forex traders.

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