Plugging Into Some Reality: Fair Value of Plug Power is 50 Cents

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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.

Excerpt:

Can someone please bring me a vodka and some second hand smoke? If we are going to have 
to hang around in a casino, let’s at least have the experience. 
 
Citron Research understands well the difference between a cult stock, dream stock, and a casino stock: 

A cult stock has a devout following people devoted to its products; therefore it can 
be challenging to assign a valuation. This could be either Tesla or Netflix. Both 
deliver great products; hence a cult around their shares. 
 
A dream stock is a stock with limitless blue sky. Regardless of current financials, 
investors can always look to the future. In dreamland, we have many biotechs and 
stocks in the 3D printing space. 
 
A casino stock, by contrast, is the lowest form of speculative moonshot. A casino 
stock can trade twice its outstanding shares in a single day, while turning over its 
entire float on people gambling that they can find a buyer at a higher price … Who 
really cares about anything else, right? The recent volume and share price surge in 
Plug Power (NASDAQ:PLUG) demonstrates how Wall Street treats this stock: 
nothing more than a casino.