A charged-up 12-bagger, fading specialty retailer, and a hot overseas automaker pretty vulnerable right now…
- Norwegian Cruise Line inched 0.3% lower. The country’s third largest cruise line operator was initially moving higher on encouraging vaccine news, but slipped after filing for a secondary stock offering to shore up its liquidity.
- Lyft rose 1.5%. It’s been quite the November for the country’s second largest personal mobility platform. The stock has soared 67% this month after a favorable ballot measure was passed in California that will exempt ridesharing and restaurant-delivery apps from having to treat their independent contractors as employees with related benefits. Good news on the COVID-19 vaccine front has also helped give Lyft a lift.
- TripAdvisor rose 1.7% for the week. Traffic to the travel destinations reviews site is improving sequentially, but visits and revenue continue to fall short of prior-year results. It’s not a surprise to see us not traveling these days.
The three stocks averaged a 1% ascent, and that may not seem like much but it was better than the S&P’s 0.8% dip for the week. Let’s see if I can bounce back.
For this week, I see Blink Charging (NASDAQ:BLNK), Chico’s FAS (NYSE:CHS), and NIO Limited (NYSE: NIO) as vulnerable investments in the near term. Here’s why I think these are three stocks to avoid this week.
One of this year’s biggest winners is Blink Charging. The operator of charging stations for electric vehicles is a 12-bagger this year. The surge is a bit baffling when you consider the underlying business. Revenue rose 18% year-over-year to just $0.9 million in its latest quarter, but that’s actually less than what Blink Charging rang up in either of this year’s first two quarters.
The popularity of electric cars is undeniable, and Blink Charging is expanding in major markets through organic and acquisitive efforts. However, it’s stunning to see a profitless company with a mere $4.5 million in trailing revenue commanding a market cap of $732 million. There will be a need for more charging stations in the future. President-elect Joe Biden will keep subsidies flowing to expand the adoption of electric vehicles. The problem here is that it will take Blink Charging…
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