In this clip from The Call @ Hedgeye, Industrials analyst Jay Van Sciver reviews earnings from Plug Power, Inc. (PLUG) and discusses the short side case for the name with Hedgeye CEO Keith McCullough.
“None of it makes any sense. What they are promising is stupid,” explains Van Sciver. “They don’t give you any of the technical information you’d really need to evaluate what they’re really doing, and that’s probably because it is exactly what it looks like. . . I love the short side on this name.”
“There are so many components to trading a developing bear market,” states McCullough. “During bear market bounces, the last stocks to go up are illiquid higher short interest names where the weakest hedge funds cover last. . . You are seeing the biggest pieces of sh*t really bounce towards the top end of my range and hang out there, and then one day you are going to wake up and they are down 5%-10% on the day.”
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