CarCharging Group, Inc. (CCGI) rose a whopping 22.73% to close at $1.35, even as Crude prices showed signs of easing off at the $1.10 levels. So, what’s driving CarCharging? That’s a question that ought to be on the minds of every investor and speculator.
For starters, electric cars, hybrids, and carbon credits have become fashion statements over the past decade, with many auto manufacturers unveiling their lines of EVs and hybrids. It is no real secret, however, that they’re doing it for the carbon credits more than with the objective of offering any real value. Well, that was until CarCharging Group came around, put its hands up, and offered to build the infrastructure themselves.
CarCharging Group Inc. has set up over a thousand charging stations and is pursuing an electrifyingly aggressive plan to provide more and more charging hubs in apartment complexes, offices, and parking lots. They also have a partner program that can cause EV charging hubs and CarCharging to grow a whole lot faster than it has in the past year.
CCGI is not at its highest – not even close. But is it a case for a good rally? That’s the question that needs answering. The stock that was trading well over $10 last year has hit $1 and has fluttered thereabouts for the past week, down a good 7% by the end of the trading week.
The debt-to-equity ratio is quite low – but looking at their revenues and their net loss, they’ve ended up with $2,605 as revenue.
The company is only 3 years old and just now setting up shop, but a few things come to mind:
- Yes, they’re going green, they’re promoting renewable energy, and they’re making a statement. But who’s buying this?
- They’re investing and making aggressive moves to grow their market share – but who’s catching on?
- They’re offering obvious and ominously large benefits in the long run to the folks who use electric cars. But are people able to afford the cars right now?
- The sluggishness in the markets is not permanent. The global cues are not going to dampen the spirits of the market forever. Green energy is “in” and so is the growing fear of a world sans gasoline. So isn’t the current correction a time to buy?
- Their cost is pretty low at $408 for the services rendered, giving them an operating profit margin of approximately 538%.
The Bottom Line
With rising fuel prices, rising taxes, and falling pay checks, the temptation of going green even with an investment still sounds a little hard to resist. Therefore, the prospect of CCGI muscling its way into the green is not exactly impossible – the key points to watch out for are any further corrections in the stock and possible policy changes on electric vehicles.
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