Stocks’ Details

Blink Charging Co.

Q3FY20 Results Highlights: Blink Charging Co. (NASDAQ: BLNK) is mainly engaged in providing electric vehicle (EV) charging equipment. On 19 November 2020, the market capitalization of the company stood at ~$592.22 million. For Q3FY20, the company posted revenues of ~$0.9 million, up by 18% on a y-o-y basis. During 3QFY20, BLNK completed its acquisition of BlueLA Carsharing, the EV carsharing contractor for the city of Los Angeles. Product sales for Q3FY20 stood at $0.6 million, up 74% on pcp, mainly due to increased demand for the company's commercial and residential products. The company exited the period with a cash reserve of $14.9 million. The company recently introduced its innovative Cable Management Solution for use with both new Blink charging stations and retrofit installations of its IQ 200 charging stations.

Quarterly Financial Highlights (Source: Company Reports)

Outlook:  The company continues to invest in the expansion of its EV charging product line-up with additional product innovations expected. Further, the company is committed to addressing the need for ~$17.6 billion global EV charging infrastructure market. 

Stock Recommendation: The stock of BLNK gave a return of 1011.5% in the past six months and a return of 98.69% in the last one month. The stock recently touched its 52-weeks high price of $19.10.

On a technical front, the stock of BLNK has a support level of ~12.69 and a resistance level of ~$23.94. On a TTM basis, the stock of BLNK is trading at a Price to Book Value multiple of 29.4x, higher than the industry average of 2.3x, and thus seems overvalued. Hence, considering the steep upside movement in the stock within the past few months, current trading levels, and TTM valuation, we suggest investors to wait for better entry levels and give an ‘Expensive’ rating on the stock at the closing price of ~$18.34, up by 24.09% on 19 November 2020.

Arcimoto, Inc.

Launched Joint Municipal Pilot Program: Arcimoto, Inc. (NASDAQ: FUV) is engaged in designing, developing, and manufacturing three-wheeled electric vehicles. The company recently entered into its first municipal fleet pilot program, with the City of Orlando to test ultra-efficient electric vehicles in City Fleets. Under the program, the company’s vehicles will be tested by Orlando Fire Department, Police Department, Code Enforcement Division, Permitting Services, Venues, and Parking Enforcement. On 16 November 2020, the company announced that it has commenced the development of its new product in the market named, ”Roadster” in collaboration with Corbin-Pacific and National Cycle.

September 2020 Quarter Results: For the quarter ended 30 September 2020, the company posted revenue of $683,895, higher than the revenue of $33,311 in the pcp, mainly due to resuming vehicle production and customer deliveries, including a total of 31 vehicles delivered in the month of September alone. Over the quarter, the company has secured a 10 million common stock only registered direct offering to strengthen its balance sheet. During the quarter, FUV launched multiple high-visibility pilot programs for its vehicles and advanced its long-term growth and development programs in every department of the company. As at 30 September 2020, the company had cash and cash equivalents of around $17 million.

 Quarterly Financial Highlights (Source: Company Reports)

Outlook: Looking ahead, the company is focused on increasing its mass production with continued collaboration with Detroit legends Munro & Associates. Also, the company has teamed up with DHL for home delivery of its products all over the United states.

Stock recommendation: Over the last six months, the stock of FUV has increased by 611.11% and is currently trading close to its 52-week high price. On a technical front, the stock of FUV has a support level of ~$6.89 and a resistance level of ~$16.10. On a TTM basis, the stock of FUV is trading at a price to book multiple of 12.0x, higher than the industry median (Automobiles & Auto Parts) of 1.8x, thus seems overvalued. On a technical front, the stock of FUV has a support level of ~$8.9 and a resistance level of ~$16.43. Therefore, considering the aforesaid facts, current trading levels and price movement in the stock, and higher valuations, we give an “Expensive” rating on the stock at the current market price of $16.00 per share, up by 69.49% on 19 November 2020.

Riot Blockchain, Inc. 

Announced Appointment of New Director: Riot Blockchain, Inc. (NASDAQ: RIOT) specializes in cryptocurrency mining with a focus on bitcoin. As on 19 November 2020, the company’s market capitalization stood at $305.56 million. On 17 November 2020, the company announced the appointment of Mr. Hubert Marleau to its Board. Mr. Marleau is a veteran capital markets professional with significant experience in macroeconomic policy & analysis, corporate governance, financial analysis, and investment banking.

3QFY20 Financials Update: During the September 2020 quarter, the company reported mining revenue of $2.4 million, higher than the revenue of $1.7 million in pcp. Over the nine-month period ended 30 September 2020, the produced 730 newly minted bitcoins, despite experiencing downtime associated with relocating to Coinmint's facility in the second quarter of 2020. As at 30 September 2020, the company had a working capital of $39.3 million and total stockholders' equity to $60.7 million.

Q3FY20 results (Source: Company Reports)

Outlook:   The company expects a total of 22,640 miners to be deployed by June 2021. Further, the company expects to achieve 2.3 EH/s of total hash rate capacity by utilizing 73 megawatts of energy.

Stock recommendation: The stock of RIOT gave a return of 157.51% in the past six months and 69.49% in the last one month. The stock is currently trading close to its 52-weeks high of $6.44. On the technical analysis front, the stock of RIOT has a support level of ~$4.02 and a resistance level of ~$9.6. On a TTM basis, the stock of RIOT is trading at a price to book value multiple of 4.4x, higher than the industry median of 2.7x. Considering the recent volatility in the stock prices, rise in operating losses,  and associated key risks, we give an ‘Avoid’ rating on the stock at the closing price of $6.0, up by 14.29% on 19 November 2020.

Comparative Price Chart (Source: Refinitiv, Thomson Reuters)

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.