Plug Power's Problems Persist. Should Investors Throw in the Towel on the Stock?
The problems that have plagued Plug Power (NASDAQ: PLUG) persisted in its second quarter as the company once again posted poor results. The stock has lost about 80% of its value in the past year.
Let's take a closer look at the issues the company is facing and whether it has an opportunity to stage a turnaround.
The biggest issues facing Plug Power are negative gross margins and cash outflows. The company found a niche selling fuel cells used in forklifts and other material handling equipment to high-volume warehouses. However, in conjunction with these deals, it has long sold the hydrogen fuel needed to power these devices at a loss.
Source Fool.com