Friday September 27, 2013 |
Hello MOJO Swing Trader, PLUG - nice article out from Seeking Alpha - I've never written about penny stocks before because they are not my cup of tea. Any trader worth his or her salt is aware of rampant manipulation in penny stocks. However, when Plug Power (PLUG
) recently came up on one of my insider buy screens, I immediately noticed the volume pattern on the weekly chart. Since the bottom dropped out of the stock in February of 2013, the stock has been under heavy accumulation and displays weekly volume never before seen in the stock's thirteen year history. Over the last decade, the stock has been beaten worse than Kevin James' character in "Here Comes the Boom". Shares are currently worth $0.63 and market capitalization comes in at a miniscule $50.9 million.
Plug Power sells hydrogen fuel cell systems to well known companiessuch as Wal-mart, Proctor & Gamble, Sysco, Wegmans, Kroger, BMW, etc. and also to government agencies. The main product
is the GenDrive power generator fuel cell used in forklift trucks. The company has many units in the field so the product is very legitimate, well performing, and well liked by Plug's very reputable customers. In fact, CEO Andrew Marsh made this statement in the last quarterly conference call on August 8th:
We have over 4,000 units in the field. With most units operating as many hours in a year that a car would experience in a lifetime. No one has done what we have done. This is demonstrated by the fact that 90% of hydrogen refuelings in the United States will be filling Plug Power products. This potential investment is a turnaround situation where management believes they can reach EBITDA profitability by the 2nd of 3rd quarter of 2014. Clues Tell The Story
In my experience, most truly great investments are mysteries which need to be uncovered through the unearthing and interpretation of many clues. So, let us begin examining the clues: Clue number one is the sizable insider buying
I mentioned. Specifically, buying by various Directors, the CEO Andrew Marsh and the Chairman of the Board George McNamee. They have all been building positions since the stock bottomed in February:
Here is my own screenshot - you can see George McNamee bought 367,000 share in the open market at $.54 = $197,000 of his own $$$ = a good sign of things to come.
Some other really nice holders - this has extremely good potential for us to see $1.00 on this stock in next 60 days. |
Thanks for reading, and profitable trading!
ProTrader Mike
email: info@mojodaytrading.com
Skype: protradermike
website: http://www.mojodaytrading.com
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