Big-time car companies like General Motors (NYSE:GM) and Tesla (NYSE:TSLA) continue to make strides in the electric car industry, and Ecotality—a maker of car-charging stations under the brand Blink—is poised to reap the benefits.
While we usually don’t bother analyzing penny stocks like Ecotality’s due to their high volatility, the increased popularity of battery-powered cars, and in turn the stations used to recharge those batteries, is too booming a market to be ignored.
CHEAT SHEET Analysis: Are the New Releases a Catalyst for Ecotality’s Stock?
One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. Tesla’s battery-powered Model S sedan recently won the prestigious “Motor Trend Car of the Year” award. Additionally, GM recently revealed its newest battery-powered car, the Chevrolet Spark, which will be priced under $25,000 thanks to green tax incentives. Honda (NYSE:HMC) , Ford (NYSE:F) and Toyota (NYSE:TM) all plan on coming out with new, electric cars as well, according to Marketwatch.
So, yes, all of these new releases are definitely a catalyst for Ecotality’s stock both now and in the future.
Earnings Boost Bodes Well
Another of our core components of the CHEAT SHEET Investing Framework focuses on a company’s earnings on a quarter-by-quarter basis. In this case, Ecotality definitely passes the test.
“The company saw its third-quarter sales rise 52% to $14.4 million as it works with the Department of Energy to deploy charging stations at Kohl’s, McDonald’s, and other parking spots around the country,” reported MarketWatch.
How Will This Affect Ecotality’s Stock?
With the increasing number of battery-powered cars and Ecotality’s increased earnings, their stock is definitely a OUTPERFORM. Yes, it’s a penny stock. And yes, penny stocks are higher risk. But the overwhelming amount of evidence suggests that, with Ecotality, you can throw all of those rules-of-thumb out the window.
Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.