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Thinking About Buying Blink Charging Stock? Here's Why You Might Want to Avoid It

By Jason Hall - Feb 4, 2021 at 6:01AM

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Even after the massive run-up over the past year, Blink Charging's business has yet to prove viable and competitive in the transition to EVs.

There's no ignoring the incredible run that Blink Charging (BLNK 2.40%) shares have gone on over the past year. Investors who bought any time in the first three quarters of 2020 have enjoyed immense gains. And there are plenty of investors who are convinced that the company's best days are ahead of it. 

Don't count Jason Hall, host of "The Wrap" on Motley Fool Live as one of them. In the video below, recorded on Dec. 14, he details why investors should be very cautious before making a bet on Blink Charging stock right now. The reality is, in more than a decade of existence, the only people the company has enriched over a sustained period of years are its executives. Check out the video below for more. 

Transcript: 

Jason Hall: Talking about Blink Charging. It's gone up 1,300% (the past) year. This is a business that did $4 million dollars in revenue and the revenues have fallen. Blink Charging, the ticker is BLNK.

You look at the stock, how much it's run up. I'm not going to deny it, a 13-fold return is amazing, if you were lucky enough to buy shares in the company earlier this year and then you hear me, Danny, and Lou sitting here, preaching the joys of winners' win, investing in these winners. I think there's context that sometimes get lost and it's easy to miss. A winner isn't just a stock that's gone up; it's a business that's delivering on its promise. Big revenue growth, cash flows are getting better, it's disrupting some stalwart in an industry, it's taking market share, it's building something new, it's changing an industry, it's changing the world. And oh, by the way, the stock is going up and the stock might look crazy, high valuation, but the business is absolutely delivering.

Blink Charging is not a business that's absolutely delivering, it's a stock that's gotten caught up in the EV story. The growth of EVs. Blink Charging's business is electric vehicle charging stations. That's the idea, is that it's going to be this business that the rising tide lifts all boats. Blink Charging's business opportunity is going to grow as more EVs are deployed around the world and we need more charging stations and charging equipment out there.

Blink Charging hasn't spent a dime on R&D in the past year. Let me say that again. Blink Charging has not spent a dime on research and development in the past four quarters. This is not a business that's innovating, that's disrupting. This is a business that really has no meaningful revenues. This is a business who has massive related party relationships between the CEO of the company, who's also the founder, and other businesses that he owns, that provide services to Blink Charging. There's a substantial question about the viability of its very business.

If you're looking for a business, that's a winner that's continuing to win. Look at Etsy, look at Amazon, and look at some of those great companies, that there's an underlying businesses doing well. Don't get caught up in Blink Charging just because the stocks gone up a whole lot this year.

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