Shares of Plug Power (PLUG) were not what Isaac Newton had in mind when he may or may not have coined the phrase, “What goes up must come down.” But what was true of the apple that may–or may not–have hit him on the head, is also true for Plug Power, one of the market’s most-volatile stocks.
REUTERS Yesterday, Plug Power gained 49% after its CEO said it had signed a large deal with a major auto maker. The detail everyone seemed to miss, however, was that the Plug Power’s CEO Andy Marsh had made the same comment earlier this month during the company’s conference call following it’s earnings release.
As a result, Plug Power’s shares are tumbling. They’ve dropped 19% to $6.87 at 2:20 p.m. today–and Plug Power’s plunge has dragged FuelCell Energy (FCEL) down 15% to $2.48 and Ballard Power Systems (BLDP) down 19% to $4.38.
Out of curiosity, I checked to see how Plug Power performed in days following gains. In 60 trading days this, shares of Plug Power have gained 31 times, and those gains were followed by a loss 17 times, or 55% of the time. The average Plug Power loss this year has been 7%; the average loss following an up day jumps to 9%.
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