To The Moon

Plug Power(PLUG) is up 20% this morning after Democrats reached a deal on climate legislation. Plug Power collects hydrogen from chlor-alkali plants, sells it, and makes electrolyzers. PLUG stock has ample cash to fulfill its potential but has yet to show a profit. The possibility of a climate dealin Washingtonsent shares of hydrogen producerPlug Power(NASDAQ:PLUG) up 20% so far this morning. However, PLUG stock is still down more than 25% on the year. The stock has been whipsawed by the on-again, off-again negotiations in the U.S. Senate overclimate fundsand energy security. The latest move brings it just to its level as of mid-May. Even at that price, Plug Power is richly valued. It hadrevenue of $500 millionin 2021 and no profits, yet it sports a market cap of $12 billion. The Hope Springs for PLUG Stock Plug Power’s valuation is based on hope for“green hydrogen.”It uses feedstock fromOlin(NYSE:OLN) chlor alkali plants, which make chlorine and caustic soda from brineusing electrolysis. Plug Power captures, transports and sells this hydrogen for use in fuel cells. Fuel cells are used by utilities for back-up power and by warehouse forklifts for long-lasting, emissions-free transport. Plug Power boasts huge orders andclaims a large backlog. But it also facesan investor lawsuitsaying management mischaracterized fuel delivery costs as research, and engaged in insider sales. The stock also hasn’t been a great investment. It was unable to sustain speculative run ups in early and late 2021. It still trades at its November 2020 level. That’s thanks to huge secondary offerings of stock, made when the price was peaking. These let it buyFrames GroupandCryo Engineering, filling out its electrolyzer and hydrogen product lines. What Happens Next? The possibility of aclimate billdoesn’t change Plug Power’s fundamentals. It’s still unprofitable and will likely remain so when it nextreports earningson Aug. 4. But with more than$3 billion in cash, much of it from thosesecondary stock offerings, PLUG stock has a chance to either succeed or fail on its own terms. $Plug Power(PLUG)$