What good is a car without a gas station?
Not much good at all. In fact, a car is pretty much useless as a means of transportation, unless it has fuel. Fuel comes from gas stations. No gas stations. No need for cars.
By that same token, what good is an electric vehicle (EV) without a charging station?
Not much good, either. An EV runs on electric charge. If that charge runs up — and there’s nowhere to refill the charge — then the EV won’t go anywhere. No charging stations. No need for EVs.
From this perspective, the EV megatrend that everyone is gushing about — you know, the one wherein everyone and their best friend buys a Tesla or some other electric car over the next decade — won’t come to be unless an equally large growth spurt materializes in EV charging infrastructure.
And that’s exactly what will happen…
Over the next decade, the number of EV charging stations globally will explode from a few thousand, to a few MILLION, alongside rising consumer demand for electric cars. As that happens, relatively tiny EV charging companies, will turn into global charging giants.
In today’s Trade of the Day, we will show you how to invest in the booming EV charging industry. It is, of course, by buying a small-cap EV charging company with multi-bagger upside potential.
An Overlooked “Picks-and-Shovels” Play with HUGE Upside Potential
Back in 1849, during the California Gold Rush, thousands of prospectors rushed to the West Coast in search of gold. Few found any. Most ended up broke. But the suppliers who sold picks, shovels, and other essentials to the prospectors were hugely successful.
The implication? The best way to strike gold in a booming megatrend is to invest in the industry’s suppliers — the picks-and-shovels sellers.
In the world of EVs, the pure picks-and-shovels play is charging company Blink (NASDAQ:BLNKIn the world of EVs, the pure picks-and-shovels play is charging company Blink (BLNK).).
Much like the gold miners of the 1800s couldn’t mine without picks and shovels, EVs of the 2020s can’t operate without charging stations.
Blink is one of America’s largest owners, operators, and providers of EV charging stations and services. As of late 2019, the $200 million company had 5,600 commercial EV charging stations across 40 states, nearly 9,000 more residential charging stations, and was the second largest EV charging company in the U.S.
Consider those numbers in context. Blink is America’s second largest charging company, with just 15,000 charging stations. That’s because there’s only about 75,000 charging stations in America.
By comparison, there are 1.2 MILLION gas station pumps in America – sixteen-fold the number of charging stations.
Clearly, if EVs really are the future of automobile transportation (spoiler alert: they are), then the number of charging stations in the U.S. is going to explode higher over the next decade.
At the center of all that growth will be Blink.
Blink isn’t the only charging station company in the world. Instead, it’s one of about four major players in the charging station market. And being in the “Top Four” is all the company needs to be enormously successful.
Just look at the U.S. gas station market. It isn’t dominated by one player. You have Exxon Mobil, Shell, and Chevron. Even Costco and Kroger are in the gas game.
In other words, the gas station market isn’t a winner-take-all market.
The EV charging market won’t be one, either. It will shape out very similarly. You’ll have a few major players, each of which will own hundreds of thousands of charging stations.
Blink will be one of those companies. Both because Blink is one of those companies today, and because the company offers an end-to-end hardware and software EV charging solution which is widely considered to be one of, if not the, best solution(s) in the market.
What is Exxon’s market cap? $150 billion. What is Chevron’s market cap? $140 billion.
Tiny, $200 million Blink won’t ever get that big.
But… those huge market caps do speak to just how big Blink’s growth opportunity is over the next decade, as this company turns into the fuel backbone of modern automobile transportation.
Big picture: a boom in EV car demand will spark a boom in EV charging infrastructure expansion over the next decade. That expansion will send tiny Blink stock soaring.
So, if you’re looking to play the EV megatrend with a potentially explosive small-cap stock, consider taking a position in Blink stock today.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world’s top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm.