January 20, 2021 - 10:36am EST by
2021 2022
Price: 48.00 EPS 0 0
Shares Out. (in M): 42 P/E 0 0
Market Cap (in $M): 1,997 P/FCF 0 0
Net Debt (in $M): 200 EBIT 0 0
TEV (in $M): 1,796 TEV/EBIT 0 0
Borrow Cost: Tight 15-50% cost

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I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.


When a heavily hyped company hits the $1-2 billion EV range, and increases the float 10x, it becomes much harder to sustain the valuation. Farkas is worth $300mm on paper in BLNK stock, which is most of his net worth. He will keep selling. The 5mm new shares still need to be absorbed. Even a modest Russell 2000 correction could also send the stock back to $10 where it was a few months ago. The market cap and valuation make it virtually impossible for a strategic to buy it. The recent offering gives about $5 a share in rapidly burning cash – you can bet on pay to the CEO and others to jump accordingly. The biggest risk is that BLNK buys real businesses with the cash from offerings. However, the Company has no history of M & A success. Still, that issuance should crater the stock as new shares hit the market. Our target is below the cash on the BS, eventually zero has we believe they will burn through the cash. As one EV insider said to us, “we just don’t think about BLNK, we don’t think there is anything there worth having or interesting.”



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