Cramer: Pull plug on Plug Power
Jim Cramer | [email protected]
I know this stuff is exciting, enough even to take this stock up about 5,000 percent in the last year, but I have never, ever seen this kind of movement end happily.
The owners of this stock don't want anything other than cheerleading. The last thing anyone wants to hear is that somebody will get hurt when you have this good a time with a money-losing company.
It is true that a body in motion--particularly one powered by hydrogen--stays in motion far longer than anyone thought possible. It is reasonable to believe that this stock could double from here simply because if it is already so expensive at $10, who can doubt that it could go to $20?
Then again, it could just as easily be cut in half if it turns out that the Wal-Mart order--as big as that company is--might just be a one-off. In other words, this one is now impossible to value, and you are just playing total greater fool. It's just that fools can make fortunes.
For me? I can't go there. I've played musical chairs and won my fair share of times. But if I write that it is worth being in, all I would be saying is, "It is worth taking advantage of the craziness and scalping a few points." I can't do that.
You know what's funny? Do you know that when Tesla came public I said I would avoid it, and then I changed my mind after a couple of years of the stock doing nothing when it was clear that the company was starting to win the hearts and minds of car owners and prospective shareholders?
Frankly, as you can tell from the run, it was a terrific call. But when you go on Twitter @JimCramer, you see a posting three or four times a week about how I said avoid the stock when it came public. That too was a great call. Except the critics routinely act as if I made the call to sell the stock right before the liftoff.
It's a huge pile of hogwash, but it is used against me constantly.
Believe me, if I told you to buy Plug Power, I am pretty sure you can scalp a couple of bucks. But if and when it crashes, the "buy Plug Power" tape will run forever.
I say, short may it run. It's a cult. You can't game cults.
That's all there is to say about it right now.
Disclosures: Cramer's charitable trust has no positions in the stocks mentioned.