Alex Reid is a new comer to the stock picking world and is out with a stock presentation.
In this presentation he talks about a company that will create "future fuel" and bring in an "11.7 trillion energy revolution."
Reid even claims this could kill Tesla and bring in gains as high as 46,700%!
Sounds a little too good to be true..
The problem is Alex wants you to join his newsletter to learn the stock's name.
However, he left enough clues in the presentation to figure out the company he's talking about.
I reveal it below and give you some information on it so you can determine if it's a good investment or not.
Let's get started!
The Complete Investor Summary
Creator: Alex Reid
Newsletter: WealthPin Pro
Stock: Plug Power
The stock Alex is recommending is Plug Power.
Plug Power creates products that split hydrogen and oxygen and the hydrogen can be used in fuel cells for power.
Alex is hyping up this companies ability to create fuel cells for clean energy cars.
It is true Plug Power is positioned well in the hydrogen market and do have deals in place with Amazon and Walmart.
However, this is a risky stock.
The price has been very volatile over the last few and keeps dropping.
The company isn't currently profitable and holds a lot of debt.
There's also concerns about how big the hydrogen car market will end up being.
Hydrogen is expensive to store and difficult to transport.
Elon Musk in the past has called hydrogen "the most dumb thing" for energy storage based on how difficult it is to make hydrogen into liquid form.
Hydrogen is more popular in Asia and companies aren't investing a whole lot in the technology in the West.
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Figuring Out The Stock
Alex Reid is not someone I've come across before in the stock picking world.
He seems very young and I'm not entirely sure he's that experiencd in stocks.
Apparently he built his wealth through crypto and real estate..
Anyway he's launching a new stock picking service called WealthPin Pro.
Like all other stock pickers Alex sells his product with stock presentations.
In this presentation Alex is hyping up what he calls "future fuel" and wants you to buy his newsletter to figure out the stock.
Well let's take a look at some of the clues before we spend any money and see if we can figure out the stock:
46,700% Windfall? (Alex Made A Math Error)
Stock pickers love to throw out these massive numbers for the potential gains you can get.
I haven't seen a stock picker tease 46,700% returns in a while, though!
So where is Alex getting this number from?
He claims a renewables company called Enphase Energy got 46,193% returns:
There's a lot of reasons why this is such a silly thing to bring up..
First off, Enphase didn't even get 46,193% gains.
The stock went public at $7 and went to a little over $300 at one point.. that means it went up 4,600% not 46,000%.
So I think Alex just made a math error here.
And if this is the case we're off to a reaaaaaal bad start LOL!
The second reason this is a silly thing to bring up is it's a completely different company than the one he's recommending.
Just because one company had success doesn't mean another one will.
That's not how businesses and stocks work.
What Is Future Fuel?
At this point in the presentation Alex transitions to what future fuel is.
Alex is talking about hydrogen.
He claims the traditional ways to create hydrogen causes too much carbon and that's a big no no in today's world.
Apparently the company Reid wants you to invest in can create hydrogen in a safe way using an electrolyzer:
Alex lists off a myriad of reasons why hydrogen will dominate clean energy and renewables.
He claims it's completely safe, charges quickly, easy to store, can run without the wind and sun and doesn't use radioactive uranium like nuclear power.
And since it comes from water Alex believes it has an unlimited supply.
Additionally, hydrogen can be burned instead of coal for heat which means it has viability in the steel, cement and chemical industries:
And Reid claims investments are already being made by car giants like Hyundai and BMW.
It does seem like these companies are putting money into hydrogen but Hyundai seems more interested in hydrogen fuel cells for non-car products, like construction.
And if you look at BMW it seems electric is a much bigger focus compared to hydrogen.
The Two Obstacles To Hydrogen
At this point Alex starts talking about how his "future fuel" company helps overcome hydrogen's two major obstacles.
First issue is hydrogen is much too expensive to create.
However, according to Alex the cost of hydrogen production has fallen 40% and is expected to fall another 40% by 2025.
The second hurdle was a lack of concern from governments.
However, the focus of most industrialized countries is to switch to green energies.
All Clues Point To Plug Power
There were a lot of clues in the presentation that gave away the stock.
First off, Reid shows a picture of the product his "future fuel" company sells:
I did a reverse image look up of the product and it belongs to Plug Power.
Additionally, Alex has this to say about the CEO of the "future fuel" company:
The company Marsh (current Plug Power CEO) started was called Valere Power and this article shows it was sold for $130, perfectly matching Reid's description:
Plug Power makes electrolysis products that split hydrogen and oxygen.
The hydrogen can then be used in hydrogen fuel cells for power.
There's other pieces that match too.
So I'm 100% confident Plug Power is the future fuel company Alex is talking about.
Is this company a good investment?
We'll answer that in the next section!
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Plug Power Is A Risky Stock
There's things to like and things to dislike about Plug Power.
You got the rosy picture in from Alex.. let me explain the risk and my problems with the stock now.
Alex Is Overstating Hydrogen's Impact
Alex is a typical misleading stock picker.
A lot of what he says is is truth mixed with falsehoods and gross over exaggerations.
To start off, hydrogen is no where close to a "$11 trillion" market.
The ENTIRE clean energy market is about $800 billion right now and it's expected to triple by 2030.
So by 2030 it'll be a couple trillion.
I have no clue where Alex is getting this $11 trillion number from.
And when you look at hydrogen that number sinks considerably.
JP Morgan claims the market will one day be around $200 billion.
There's Growing Competition
Plug Power is set up nicely in the hydrogen market but there's a lot of competition.
For example, companies like FuelCell Energy and Bloom Energy are growing and making similar products.
Big automakers are starting to get into the hydrogen game as well including GM, Toyota, Nikola and more.
Not Yet Profitable
One of the biggest reasons Plug Power is a risky investment is the company is not profitable.
That doesn't mean they won't be profitable one day but unless they can figure out how to turn a profit they don't have a viable business.
To do this they need to cut costs, develop new technology and raise more money from investors.
That might be difficult to do in the short term.
Inflation is high and that impacts a company like Plug Power.
They've also stated supply chain issues have hurt them.
All of this has made the stock very volatile over the last year:
If you were to invest in this stock you'd have to except this kind of volatility.
You wouldn't want to get obsessed with this price movement on a day by day basis.
There's Things To Like About This Company
There are things to like about Plug Power, though.
For example, they have deals in place with Amazon, Walmart and Home Dept.
Plug Power has been supplying Amazon with fuel cells to replace batteries in their forklifts.
Additionally, Amazon has 16 million shares of of the company through warrants.
If Amazon spends $2.1 billion over the next seven years they would exercise their warrant options.
Additionally, they're expanding their footprint and developing more plans.
They're creating a plan in Belgium, New York and Georgia.
Additionally, they have deals in place in Asia.
So that's the end of my post detailing Alex Reid's "future fuel" stock presentation.
Like all stock pickers Alex plays it fast and loose with the facts.
He paints a picture of a future run by hydrogen.
He down plays the concerns about hydrogen and Plug Power.
If you want to invest in Plug Power that's up to you.
Just realize there's risk and get any ideas of 46,000% returns out of your head - that's not happening.
If you invest it has to be in the long term.
Expect set backs and volatility while you hold the stock.
Anyway that's my take on the situation.
Do you have a different take?
Let me know in the comments what you think!
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