$PLUG PlugPower could ROCKET this week on DOE Loan confirmation [Must Read DD]
Plug Power is a leading company in the hydrogen fuel cell industry. They are arguably the most "legit" hydrogen play with over 150 patents and Walmart and Amazon partnerships. However this isn't about the company long term. **It's about $1.6B coming there way any day now from a DOE Loan.**
First the setup. A huge amount—25%—of their shares have been sold without first being owned *if you know what I mean*. "Non-owner sellers" think the company will die with the Trump admin coming in and that this loan won't get through before his inaguration.
However that's not shaping up to be true. The market cap is 2.4 billion. They are about to receive $1.6B from the Department of Energy. Why am I confident this will occur?
1. Biden is [rushing to push through DOE loans](https://oilprice.com/Latest-Energy-News/World-News/Bidens-Transition-Loan-Rush-Hits-38-Billion.html) before Trump takes office on Jan 20th and has done $38B so far
2. The PlugPower CEO has ***literally*** said they are just crossing t's and dotting Is, and that there is a high probability the loan is [confirmed this week](https://renewablesnow.com/news/interview-plugs-ceo-confident-about-loan-deal-and-future-under-trump-1269142/?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1736528144)
3. There was a report that the DOE [website updated PlugPower's page](https://hntrbrk.com/plug-power-2/) on Friday, with a history of updating pages a 2-3 business days before loans closes are announced and on weekdays.
4. This means if it were to come before Trump it would be announced this week as he takes office next Monday.
5. Additionally, the company has said it might bring another equity investor on board after the loan closes, which might likely be one of its partners (Amazon or Walmart). This would be another positive "surprise".
This loan is at an insanely low interest rate for such a risky company of 5.5% per year. I have no view on the long term viability of the company, and frankly I don't care at all. But this is the best imaginable news for the equity. It's as if they raised 1.6B of free money without dilution which would be *unheard of*. This is again like 70% of the market cap.
*It means that "non-owner sellers" no longer can rely on offerings to buy shares.*
This is a loan, so they will pay it back, but it essentially gives this company a massive lifeline and would likely cause a scramble for shares and the interest rate is only 5.5% which is essentially equivalent to what the company can get by investing the money into T-bills, so it's "free money" (though of course they may use it to run operations).
When the loan was first announced, the stock jumped 20% and it has since sold off 40% from there on fears the loan wouldn't get through before Trump. A lot could change this week!
[Ride or Die](https://preview.redd.it/5yhxqvwgxuce1.png?width=610&format=png&auto=webp&s=a3cd73b6c51eae888fea6b4da0439fd5d6c540de)