Weekly Options Trade – Blink
Charging Co (NASDAQ: BLNK) Calls
Tuesday, December 22,
TRADE: Buy BLNK DEC 31 2020 38.000 CALLS at approximately $3.00.
The EV industry, plug, and hybrid EV industry are poised to grow. And Blink
Charging (NASDAQ:BLNK) stock
continues to climb. The last four trading days has seen BLNK make higher lows –
climbing from the low in the morning and then falling back in the afternoon.
The Major Catalyst for This
The Major Catalysts for
euphoria for clean energy and battery electric vehicle suppliers
resurfaced in the last week. Blink Charging rose by 33.4% in that time and is
now up 2,800% from its yearly lows.
In Q3, Blink posted a 12-cent EPS loss and revenue growth of 18.4%.
There is optimism that the incoming Administration, through Biden’s win,
will increase subsidies and spending to the clean energy initiative. To pay for
the support, it will tax oil and gas firms and impose strict environmental
Under that scenario, utilization rates for EV charging stations will increase.
It is not known yet how Blink Charging’s margins will look as utilization
increases. But as utilization increase from, say, 5% to 10%, the gross margins
will increase at a faster pace.
charging equipment and services provider Blink Charging (NASDAQ:BLNK) has
screamed higher this year. After beginning the year below $2 a share, Blink
closed yesterday at $31.61 a share.
surrounding Blink has to do with its tie-ins to EV infrastructure. Electric
vehicles represent the unquestioned future of the automotive industry.
According to a November 2018 estimate from the Edison Electric Institute (EEI),
the number of EVs on U.S. roadways is expected to grow from 1 million in late
2018 to 18.7 million by 2030. EEI further projected that about 9.6 million
charge ports will be required to maintain this fleet of EVs by 2030. That's
where Blink comes in.
This year, Blink has made
a number of moves to cement its footprint as an EV charging and servicing
leader. This includes acquiring BlueLA Carsharing in mid-September. BlueLA is
the city of Los Angeles' contractor for its EV carsharing services program,
which totals 200 charging stations and 100 EVs. In the third quarter alone,
Blink Charging also sold, deployed, or acquired 668 charging states across 25
Charging Company Profile.....
Blink Charging Co, through its subsidiaries, owns, operates, and
provides electric vehicle (EV) charging equipment and networked EV charging
services in the United States. The company offers residential and commercial EV
charging equipment that enable EV drivers to recharge at various location types.
Blink Charging signed a
deal last week expanding its charging network for electric cars while a top
auto trade group urged U.S. policymakers to back a range of EV incentives,
including for chargers. Blink Charging stock jumped.
The five-year deal with
Illinois' Blessing Health System will see Blink deploy 20 of its IQ 200
electric-vehicle (EV) chargers at four health care facilities.
Blink's EV charging network
spans 23,000 stations worldwide. Last week, it scored a deal to deploy 26 EV
chargers at Burger King locations.
Also Tuesday, last week, the Alliance for Automotive Innovation (AAI)
called for a series of steps to boost the electric-car market and to revamp
regulatory oversight of self-driving vehicles.
Among its recommendations, the trade group that represents auto giants
like General Motors (GM), Ford (F), Volkswagen (VWAGY) and Toyota (TM) urged a
revision of building codes to make EV charging easier.
BidaskClub upgraded Blink Charging from a “sell” rating to a “hold”
rating in a research note on Thursday, November 5th.
Other equities research analysts have also recently issued research
reports about the stock......
Zacks Investment Research upgraded Blink
Charging from a “sell” rating to a “hold” rating in a research note on
Wednesday, October 14th.
HC Wainwright cut Blink Charging from a “buy”
rating to a “neutral” rating in a research note on Friday, August 14th.
Blink’s rising stock price will give the company a chance to sell shares
or debt to increase its cash on hand. In doing so, it may increase its
infrastructure spending and grow at a rate markets expect it to.