Plug Power Inc (NASDAQ: PLUG) is having an incredibly strong in the pre-market this morning, and for good reason. The company made two key announcements this morning; one surrounding a European deal with Asko and Toyota as well as an upcoming earnings release. Of course, this led to excitement, causing gains and prompting an alert from our partners at Trade Ideas. Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to PLUG ahead.
What We’re Seeing From PLUG
As mentioned above, Plug Power is having an overwhelmingly strong day in the market today after announcing a deal in Europe as well as an upcoming earnings release. As a result, the pre-market has been filled with green for the stock. At the moment (9:04), PLUG is trading at $2.94 per share after a gain of $0.21 per share or 7.69% thus far today.
Plug Power Announces European Deal
The big reason for the gains we’ve seen from PLUG this morning have to do with a deal in Europe. In a press release offered up early this morning, PLUG announced that it has entered into an agreement with Toyota Material Handling Norway. Through the agreement, Plug Power will work with Toyota to provide hydrogen fuel cells to Asko, a leading grocery wholesaler in Norway. Asko intends on using GenDrive fuel cells to power its electric forklift fleet in Trondheim, Norway. It is expected that this fleet will be deployed during the fourth quarter of 2017.
Under the agreement, GenDrive fuel cell units will now be able to be incorporated into Asko’s distribution center with an ultimate goal of converting an entire 95-truck fleet to fuel cell power. In the press release, PLUG said that green hydrogen will be produced on site through electrolysis technology that will be provided by NEL ASA, the same technology that produces electricity from solar panels.
It’s worth noting that the Trondheim project is a pilot project. As such, it is expected that this project will lead to expansion into potential additional opportunities. One of those larger opportunities would be expansion into Akso’s 13 regional warehouses. In a statement, Andy Marsh, CEO at PLUG, had the following to offer:
“Plug Power’s proven performance in Europe has attracted leading partners, like Toyota, NEL ASA and Asko, as we expand our European fuel cell presence into Norway… In Europe, the value proposition remains the same – industrial electric vehicle users constantly seek productivity enhancing solutions that positively impact the bottom line. Plug Power’s GenDrive solution does this.”
More News On The Horizons
On top of the press release announcing the European agreement with regard to GenDrive, PLUG had another press release out this morning, informing investors of a coming earnings release. The company expects to release its earnings on November 8, 2017, and will be offering a conference call to discuss the results. If you would like to join the call, it will be held on November 8th at 10:00 am ET. You can call in with the toll free number (877) 407-9221.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PLUG. In particular, we’re interested in following the agreement with Asko as this has the potential to lead to much more business down the road. We’re also interested in following the earnings report, which will be released relatively soon. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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