![]() ![]() The cozy relationship between the analysts, bankers, and company executives are apparent. Riley analyst Christopher Souther notes that this minor accounting problem of three years of financial statements that can no longer be relied upon represents an “additional buying opportunity” for the stock. is not expected to impact the company’s cash position, business operations or economics of commercial arrangements,” and that it is simply an accounting misunderstanding. Company management is publicly dismissive of this, claiming that “The revised accounting. Since the publishing of that article in January 2021, the company reported 2020 Q4 revenues of negative $316mm, failed to file a 2020 10-K, and has announced it will be restating financial statements going back to 2018. I detail PLUG in a report found here so please see that for background. “ not detect misconduct.” These are the headlines facing PLUG, a company that Wall Street analysts, retail investors, and company insiders have hailed as the face of the clean energy movement in America. Securities fraud lawsuits, three years of restated financials, stock down 65% off all-time highs, and insiders dumping stock (see appendix). Fraud may even start with honest intentions that become infected over time. It insidiously builds over years and years, waiting for the right combination of willing enablers and an audience ready to believe the lie. In reality, there are several characteristics that allow fraud to flourish. Lawsuits come raining down, analysts issue reports saying “If only we had known,” and everyone acts as if nobody could have predicted these inevitable downfalls, especially when it’s happening to them. When it all comes crashing down, those involved aren't expecting to be victims of fraud. When Jeff Skilling told the Street how Enron was changing Energy forever, he was lauded as a visionary, and nobody asked questions since Enron painted an image that matched the reality Wall Street wanted to see. ![]() From the snake oil salesman promising better health to Bernie Madoff promising stable 10% returns, fraudsters prey on natural optimism and paint a picture of a better world. My previous report on Plug Power offers additional details on the numbers and specifics of Plug Power mentioned in this article.Īn Anatomy of Fraud: Plug Power is the Enron of Hydrogenįraud takes many forms. I have no information regarding the legal status of any of the events mentioned.Īll share price comparisons in the article reference the closing price as of 4/15/21 ($26.09) Elements of this article may express my opinion. DISCLAIMER: My views and research are my own and do not represent those of my employer or anyone else. ![]()
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