The dramatic drop was cased by the following note made by CitronResearch:
Citron Research comments on the difference between a cult stock, a dream stock, and a casino stock.
Behind the moonshot chart, Citron examines a litany of Plug Power (NASDAQ:PLUG) management’s broken promises, a doomed business model, and some true penny-stock capital raises just last year. With no fundamental changes now or expected in its business model, this one has “bust” written all over it.
Source: Plugging Into Some Reality: Fair Value of Plug Power is 50 Cents
From a blogs.marketwatch.com Article:
Plug Power shares traded at their highest in five years, and the stock was the second most active in U.S. markets in early trading Tuesday.
“It’s a casino stock, “the lowest form of speculative moonshot,” Left said in a note Tuesday. There are no profits, no unique technology, and the end of government subsidies looms, he added.
Nothing has changed in the year since the stock traded at 15 cents. “Revenue for the 9 months ended September 30, 2013 was $18.6 (million), vs $20.2 (million) for the prior year. Nothing more needs to be said.”
Source: Plug Power plummets 25% as analyst says fair share value is 50 cents