PLUG gets a D
So, Plug Power, maker of fuel cell-powered lift trucks and pallet jacks for warehousing operations, has completed a 1-fo-10 reverse split of its stock (which temporarily changes its ticker symbol from PLUG to PLUGD). Forr quite some time, PLUG had been trading in the $.40 to $.60 range, with little hope of cracking the $1 mark anytime soon. Clearly the risk of NASDAQ delisting was looming large for the company, and the reverse split became rather necessary.
Plug Power is a company that I have wanted to like for a long time. Its a sort-of underdog that I can't help but root for. And this is a company that has made some very significant changes to drive itself towards profitability (not there yet, but gettting close). Significant corporate restructuring, ending their stationary power generation product line to focus on the lift trucks, manufacturing changes to drive costs down, so on and so forth.
But, ultimately, this is a company that just isn't there yet. And it may be a company that never gets "there". One critical mistake, in my opinion, was waiting far too long before they started focusing on profitability. Make no mistake, the changes instituted at PLUG over the last year or so have been big...but they may have been too far down the path for it to matter by the time these changes went into place.