Plug Power Inc (NASDAQ: PLUG) is off to an incredibly strong start in the market today, and for good reason. The company announced early this morning that it has expanded its agreement with Wal-Mart Stores, Inc. (NYSE: WMT). Of course, this led to excitement among investors, pushing the stock upward and prompting an alert from our partners at Trade Ideas. At the moment (8:51), PLUG is trading at $2.40 per share after a gain of $0.28 per share or 13.21% thus far today.
PLUG Expands Agreement With WMT
As mentioned above, Plug Power is off to an incredible start in the pre-market hours this morning after announcing that it has expanded its agreement with Wal-Mart. Today’s new collaborative agreement is designed to include revised terms by which WMT will allow PLUG to access project financing at a lower cost of capital and no restricted cash. As a result, future distribution transactions with WMT will immediately be cash positive.
It is expected that PLUG will provide GenKey hydrogen fueling stations and fuel cell energy solutions to up to 30 additional WMT sites in North America over the next 3 years. 10 of these sites are already under contract and should come to completion by the end of 2017. In a statement, Andy March, CEO at PLUG, had the following to offer…
“Our expanding relationship with Walmart validates Plug Power’s advanced capabilities in fuel cell products and systems, allowing the world’s largest retailer to maintain its leading position as an industry innovator… Walmart’s long-term supply agreement is a great example of our strategy in action, as it enables us to improve both our revenue visibility and cost structure, all while allowing our customers to experience improved productivity and operational cost savings. We see a growing market opportunity for our power and fueling station technologies within the material handling segment, as well as new mobility applications worldwide, positioning us for long-term success and shareholder value creation.”
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on PLUG. In particular, we’re interested in following the relationship between the company and WMT as this relationship has already become overwhelmingly fruitful. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!