7 of 2020 s Most Interesting Electric Vehicle SPACs — Good and Bad yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Author Bio
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
Electric vehicles have been one of the hottest topics on the stock market in 2020.
Tesla rose sharply in value this year, and commercial EV charging company
Blink Charging was one of the market s best performing growth stocks of 2020.
Any way you look at it, EV stocks seem to be overvalued and we don t really know who is going to win when dozens of new models hit the market in the next few years, which may mean we re in bubble territory. But even if EVs are in a bubble market, our Motley Fool contributors think
Author Bio
Rekha Khandelwal, CFA, is a long-term investor with a special focus on energy stocks. Rekha holds a master s in finance and has worked as a financial consultant. When she isn t writing, she can be found traveling to a new city or country.
Shares of electric vehicle (EV) charging equipment provider
Blink Charging (NASDAQ:BLNK) have zoomed upward by 1,790% year-to-date as of this writing. Growing enthusiasm for electric vehicles combined with the number of new charging stations Blink installed during the year made investors exuberant about the company s prospects. But in the wake of that remarkable rise, is this stock still a buy?
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One of the most powerful tradable market events is a short squeeze, so traders are always on the lookout for the next short squeeze candidate.
S3 Partners analyst Ihor Dusaniwsky just released a list of potential short squeeze stocks based on their high borrow rates and large mark-to-market losses for short sellers.
A stock borrow fee is the percentage of a stock’s value that brokers charge short sellers to borrow the stock. If the supply of shares to borrow gets low, borrow fees tend to rise.
“In my analysis I am looking at stocks with over $100 million of total short interest to include only stocks where the short covering from a squeeze can materially affect stock prices,” Dusaniwsky said.
Source: Kaca Skokanova/Shutterstock
Even with a pullback of late, FCEL stock still has more than quadrupled in less than six weeks. Given that rally, it’s fair to ask: what’s changed?
The answer, as far as FuelCell Energy itself goes is: not much. There’s one piece of company-specific news that looks bullish, and clearly investors see the external environment as more positive.
But those two factors hardly seem like enough to send the stock up much at all, let alone more than 300% as of this writing.
It’s possible investors simply missed the story until recently. But the more likely answer is that FCEL stock is part of a bubble in “clean energy” stocks. And while some of those names still could be long-term winners, I’m skeptical FuelCell Energy will be one of them.