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Plug Power Sees Hydrogen Finally Profiting by 2024 By Investing.com

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© Reuters.

By Christiana Sciaudone

Investing.com — Investors are betting big on Plug Power (NASDAQ:) as they hunt for the next Tesla (NASDAQ:). And maybe it’s finally the right time for the hydrogen fuel cell maker.

PLUG, a provider of hydrogen engines and fueling solutions, is up some 600% this year, and has a market cap of more than $5 billion. But in over two decades of being in business, it has yet to post a profit. That should change, at least in 2024, when it is forecasting the tides will turn. And on the plus side, unlike electric truck maker Nikola, Plug actually has a product that runs on its own and is already in the hands of customers like Amazon.com (NASDAQ:).

“This isn’t a company talking about doing this at a future date,” said Chief Executive Officer Andrew Marsh in a phone interview. “We’ve done it, continue to do it, and that is what differentiates Plug Power.”

Plug forecasts revenue of $1.2 billion, operating income of $200 million and adjusted earnings before interest, taxes, depreciation and amortization of $250 million in four years, guidance that was recently boosted after it acquired United Hydrogen Group Inc. and Giner ELX, with a goal that more than 50% of the hydrogen it uses be green by 2024.

“There is a lot of hype around hydrogen right now because of Tesla and electric vehicles, and because earlier this year Nikola came out with plans for a hydrogen truck,” said Hillary Cacanando senior vice president of Energy Investment Research at Odeon Capital Group. “Plug’s stock rose along with that excitement, however I think the excitement around hydrogen is real this time.”

Plug was among those stocks that 20 years ago flew sky-high amid the dotcom boom. It traded as high as $1,174.38 in 2000 only to come plummeting down for the next two decades. Unlike Nikola, it has a solid back story, Cacanando said.

“Nikola has no revenue, it’s really a concept story,” Cacanando said in a phone interview. “They have strong customers and strong relationships with Walmart (NYSE:), Amazon and Home Depot (NYSE:).”

The concern is in the margins.

Forklifts represent the majority of revenue for Plug today, and that will continue to be the case four years from now, with sales estimated at $750 million for the material handling business at that time, more than doubling from this year, Marsh said.

“We need to add two other big, large customers to get there,” said Marsh, who is expecting to announce one of those pedestal clients before the end of 2020, at which point the stock will likely spike, like it does every time Plug puts out a press release.

Another $200 million in revenue should come from electrolyzers that store power — like solar and wind — and $250 million from large-scale back-up power. Plug is working on a pilot program with a leading data center company for large-scale stationary back-up power for 2021, Marsh said. Again, that press release will likely lead to a jump in shares.

What about vehicles? While Marsh has no doubt electrification will one day replace the internal combustion engine, it will depend on the cost of hydrogen and the available infrastructure to charge the fuel cells. Marsh points to class A trucks — big rigs — and the benefit of hydrogen fuel cells over batteries. Not only are batteries heavier, they also require lengthy charging times, where hydrogen fuel cells require no more than three days a year of charging.

Plug built fueling stations for Walmart and Amazon to charge their forklifts. When it comes to states and countries, though, it’s clearly a massive undertaking to get fueling stations dotted across the terrain.

“Consumers are pushing for cleaner solutions and that drives companies,” Marsh said. “Companies are looking to be cleaner around the world, and that overlapped with policies” should result in a movement toward building the necessary infrastructure.

The European Union has mandates to move to totally clean energy by 2050, and California’s set to go carbon-free by 2045.

Then there’s the high cost. While hydrogen can be produced from renewable energy, it’s still expensive.

“The cost for hydrogen is expected to come down dramatically over the next several years, and if that’s the case, there’s a huge opportunity,” Canacando said. “The risk is, is the cost really going to come down?”

The other uncertainty is shareholder wrath. Some have bristled at being diluted as the company issued new equity over the years to make money to expand while profit remained elusive. But Marsh says those days may be over, for now.

“We have half a billion dollars on the balance sheet,” Marsh said. “We have no plans to raise capital any time soon.”

Investors seem to be drawn to the stock’s tech-like opportunities. “Investors are willing to accept that for growth potential, particularly in this market, with growth momentum stocks doing well,” Cacanando said.

Apparently so: the stock has 10 buys, one hold and no sells, and hedge fund D.E.Shaw reported a 5% passive stake in Plug Power, or 20.3 million shares, as of Aug. 24.

Plug’s 2024 guidance may yet again be updated, as new acquisitions aren’t out of the question, Marsh said.

“I’m always thinking about opportunities to leverage our technology,” Marsh said. “I would not be surprised if we find a large or small player that would make sense to partner with or maybe form JVs or purchase.”





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AstraZeneca says its Oxford vaccine deal allows it to add up to 20% of manufacturing costs By Reuters

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© Reuters. FILE PHOTO: The company logo for pharmaceutical company AstraZeneca is displayed on a screen on the floor at the NYSE in New York

By Kanishka Singh

(Reuters) – AstraZeneca Plc (L:) said on Friday its coronavirus vaccine deal with Oxford University will allow it to add up to 20% of manufacturing costs to cover additional expenses required to be incurred by the British drugmaker.

“In addition to the manufacturing costs, the company is incurring costs in excess of $1 billion globally that include clinical development, regulatory, distribution, pharmacovigilance and other expenses”, an AstraZeneca spokesman said in a statement.

“To cover these additional expenses, the company will add an amount equivalent to a maximum of 20% of the manufacturing costs to ensure there is no material impact on its finances this year while continuing efforts to provide the vaccine at no profit during the pandemic,” the statement added.

AstraZeneca has previously signed multiple supply-and-manufacture deals for more than 3 billion doses globally.

These agreements are with companies and governments as the company gets closer to reporting early results of a late-stage clinical trial. Developed by the University of Oxford and licensed to AstraZeneca in April, the vaccine is expected to be one of the first from big pharma to secure regulatory approval.

The company had said earlier it has created multiple supply chains to ensure that access to its vaccine is timely, broad and equitable for high- and low-income countries alike.

Pricing and supply of experimental COVID-19 vaccines have been widely debated as richer countries pump billions of dollars into funding, and AstraZeneca has also been granted protection from future liability claims.

Separately, AstraZeneca resumed the U.S. trial of its experimental COVID-19 vaccine after approval by regulators, the company said on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. stocks mixed at close of trade; Dow Jones Industrial Average down 0.10% By Investing.com

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© Reuters. U.S. stocks mixed at close of trade; Dow Jones Industrial Average down 0.10%

Investing.com – U.S. stocks were mixed after the close on Friday, as gains in the , and sectors led shares higher while losses in the , and sectors led shares lower.

At the close in NYSE, the fell 0.10%, while the index gained 0.34%, and the index added 0.37%.

The best performers of the session on the were UnitedHealth Group Incorporated (NYSE:), which rose 1.50% or 4.87 points to trade at 330.60 at the close. Meanwhile, Walgreens Boots Alliance Inc (NASDAQ:) added 1.41% or 0.53 points to end at 38.04 and Verizon Communications Inc (NYSE:) was up 1.10% or 0.63 points to 57.96 in late trade.

The worst performers of the session were Intel Corporation (NASDAQ:), which fell 10.58% or 5.70 points to trade at 48.20 at the close. American Express Company (NYSE:) declined 3.64% or 3.81 points to end at 100.98 and Chevron Corp (NYSE:) was down 1.13% or 0.83 points to 72.57.

The top performers on the S&P 500 were Nordstrom Inc (NYSE:) which rose 5.60% to 14.33, SVB Financial Group (NASDAQ:) which was up 3.97% to settle at 296.38 and Flowserve Corporation (NYSE:) which gained 3.93% to close at 31.75.

The worst performers were Intel Corporation (NASDAQ:) which was down 10.58% to 48.20 in late trade, Robert Half International Inc (NYSE:) which lost 8.26% to settle at 51.67 and TechnipFMC PLC (NYSE:) which was down 5.69% to 6.47 at the close.

The top performers on the NASDAQ Composite were Socket Mobile Inc (NASDAQ:) which rose 74.66% to 2.550, Marin Software Inc (NASDAQ:) which was up 62.74% to settle at 3.450 and Youngevity International Inc (NASDAQ:) which gained 55.15% to close at 0.729.

The worst performers were BiondVax Pharmaceuticals Ltd ADR (NASDAQ:) which was down 86.27% to 5.20 in late trade, Iterum Therapeutics PLC (NASDAQ:) which lost 44.71% to settle at 0.53 and Limelight Networks Inc (NASDAQ:) which was down 31.98% to 4.20 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1878 to 1153 and 104 ended unchanged; on the Nasdaq Stock Exchange, 1726 rose and 1152 declined, while 95 ended unchanged.

Shares in SVB Financial Group (NASDAQ:) rose to 52-week highs; rising 3.97% or 11.32 to 296.38. Shares in Socket Mobile Inc (NASDAQ:) rose to 52-week highs; up 74.66% or 1.090 to 2.550. Shares in BiondVax Pharmaceuticals Ltd ADR (NASDAQ:) fell to 52-week lows; losing 86.27% or 32.68 to 5.20. Shares in Iterum Therapeutics PLC (NASDAQ:) fell to all time lows; losing 44.71% or 0.42 to 0.53.

The , which measures the implied volatility of S&P 500 options, was down 1.99% to 27.55.

Gold Futures for December delivery was down 0.03% or 0.60 to $1904.00 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 2.19% or 0.89 to hit $39.75 a barrel, while the December Brent oil contract fell 1.93% or 0.82 to trade at $41.64 a barrel.

EUR/USD was up 0.39% to 1.1862, while USD/JPY fell 0.10% to 104.72.

The US Dollar Index Futures was down 0.26% at 92.722.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. tentatively approves Delta, WestJet alliance By Reuters

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2/2
© Reuters. Delta Air Lines passenger planes parked in Birmingham

2/2

WASHINGTON (Reuters) – The U.S. Transportation Department said on Friday it had tentatively approved a proposed alliance agreement between Delta Air Lines (N:) and Canada’s WestJet that is expected to expand travel options between the United States and Canada.

The department said it would require the carriers remove Swoop, an ultra low-cost carrier affiliate of WestJet, from the alliance, and divest 16 takeoff and landing slots at New York’s LaGuardia Airport.

WestJet is owned by private equity firm Onex Corp (TO:).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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