Blink Charging Stock (BLNK): Should I Buy It Now?

By Amit Chowdhry ● September 30, 2020
  • Should you buy Blink Charging Co (NASDAQ: BLNK) now? Here is some information to help you decide.

This month, the stock price of Blink Charging Co (NASDAQ: BLNK) increased by over 44%. There were several company announcements that triggered the stock price increase. Here’s a deep dive into what is going on.

Sustainable Westchester Partnership

A few days ago, Blink Charging Co (NASDAQ: BLNK) announced it partnered with Sustainable Westchester, a leading nonprofit consortium of local municipalities in Westchester County, New York. They will be working together exclusively to promote the build-out of EV charging infrastructure in conjunction with New York’s NYSERDA and Make Ready programs.

Gov. Gavin Newsom Bans Sale Of New Gasoline Cars in 2035

About a week ago, California Gov. Gavin Newsom announced a decision to ban the sale of new gasoline-powered vehicles in the state starting in 2035. On the day of that announcement, the stock price of Blink increased over 10%. While it is unclear how much Blink will benefit from this decision, it further validates Blink’s business model.

Over 23,000 Charging Stations Deployed

On September 22, Blink Charging Co (NASDAQ: BLNK) revealed that it sold or deployed 539 EV charging stations across 24 states and 4 countries. Those numbers represented a nearly 100% increase over the same three-month period in 2019. In a press release from August 2020, Blink also revealed it had deployed over 23,000 charging stations — many of which are networked EV charging stations.

Acquisition Of BlueLA Carsharing

A couple of weeks ago, Blink Charging’s wholly-owned subsidiary Blink Mobility acquired BlueLA Carsharing. BlueLA Carsharing is the City of Los Angeles’ contractor for an electric vehicle carsharing services program with 200 charging stations and 100 electric vehicles. That acquisition doubled the number of Blink stations in Los Angeles.

Other Points You Should Know

Here are some other points you should know:

Some of Blink Charging’s assets are tied to a 2013 acquisition of an EV charging company called ECOtality. And the company’s origin ties to a company called Car Charging Group. In 2017, Car Charging Group changed its name to Blink Charging and the company also implemented a 1 for 50 reverse stock split.

And in August, Blink Charging issued a press release defending itself from a short-seller report. Culper Research had published a report saying that Blink Charging was “vastly” exaggerating the size of its EV charging network.

Blink Charging Stock (BLNK): Should I Buy It Now?

For the total revenue ended June 30, 2020, Blink Charge reported a 120% increase in revenue to $1.6 million compared to $0.7 million in the second quarter of 2019. The net loss for the quarter was $3 million compared to $2.2 million in the second quarter of 2019. For a company operating in the electric vehicle space, this may not seem significant. But in my opinion, I can appreciate the strategy of controlling the burn rate in an industry where many other companies in the space are operating at much larger losses.

Blink founder and CEO Michael D. Farkas noted that the revenue for the first half of 2020 had surpassed the company’s revenue for all of 2019 as the company has been seeing larger opportunities across the business as host locations, strategic partners, EV drivers, and investors have been seeing more value from their charging solutions.

I also checked out some consensus reports to see what they said about Blink Charging stock:

Consensus Report #1: 1 analyst says buy and 1 analyst says neutral
Consensus Report #2: 1 analyst says hold

Blink Charging Stock (BLNK) Performance:

Here is how the Blink Charging stock price performed over certain periods of time (as of 1:28 PM ET today):

1-Day: +4.10%
5-Day: +34.7%
1-Month: +42.3%
6-Month: +490.3%
YTD: +458.6%
2-Year: +324.1%

When you look at the charts beyond two years, the numbers also reflect the performance of Car Charging Group prior to the reverse stock split and branding change.

Based on all of the recent company milestones, I plan to obtain a very small position in Blink. And I will steadily increase more shares in Blink Charging as it grows over time as I tend to take high-risk positions, including positions in companies that have had volatile stock price histories as part of my current investment strategy.

If you are a more conservative investor, then I would recommend that you invest more in other companies that have had long track records with steady growth.

Disclosure: I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.