Unplug Plug Power

 | Mar 10, 2014 | 4:00 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

plug

,

bldp

,

fcel

Enough with Plug Power (PLUG) already. This little money-losing company has become the flavor du jour -- along with fellow travelers Ballard Power Systems (BLDP) and FuelCell Energy (FCEL) -- because of a couple of contracts, most notably Wal-Mart (WMT) using FCEL's hydrogen battery technology on some forklifts. Now, I know this stuff is exciting, enough even to take this stock up about 5,000% in the last year, but I have never, ever seen this kind of movement end happily.

The owners of this stock don't want anything other than cheerleading. The last thing anyone wants to hear is that when you have this good a time with a money-losing company, somebody's going to get hurt.

It is true that a body in motion -- particularly one powered by hydrogen -- stays in motion far longer than anyone thought possible. It is reasonable to believe this stock could double from here simply because if it is already so expensive at $10, who can doubt that it could go to $20. Then again, it could just as easily be cut in half if it turns out that the Wal-Mart order -- as big as that company is -- might just be a one-off. In other words, this one is now impossible to value and you are just playing total greater fool. It's just fools can make fortunes.

For me? I can't go there. I've played musical chairs and won my fair share of times. But if I write that it is worth being in, all I would be saying is, "It is worth taking advantage of the craziness and scalping a few points."

I can't do that.

You know what's funny? Do you know that when Tesla (TSLA) came public I said I would avoid it, and then I changed my mind after a couple of years of the stock doing nothing when it was clear that the company was starting to win the hearts and minds of car owners and prospective shareholders.

Frankly, as you can tell from the run, it was a terrific call. But when you go on Twitter @JimCramer, you see a posting three or four times a week about how I said avoid the stock when it came public. That too was a great call. Except the critics routinely act as if I made the call to sell the stock right before the lift-off. It's just a huge pile of hogwash but it is used against me constantly.

Believe me, if I told you to buy Plug Power, I am pretty sure you can scalp a couple of bucks. But then, if and when it crashes, the "buy Plug Power" tape will run forever.

I say, short may it run. It's a cult. You can't game cults.

That's all there is to say about it right now.

Columnist Conversations

IBM Corporation (IBM) dominating earnings chatter after disappointing badly with results after moving earnings...
IBM
For all those thinking this was a low risk due to solid finances type of longer term play, this morning is a w...
There sure are a lot of folks calling a market bottom. I don't play that game but even if we have seen the low...
In preparation for the open of Monday's regular session auction, traders should note that Friday's day session...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.