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  • An Investment Worthy Stock From The EV Industry; CCGI. 0 comments
    Nov 17, 2013 3:58 PM

    Microcap stocks are the most vulnerable and volatile form of investment in security exchanges; consequently, they require proper research and detailed insight before investing in them. Many individuals who invest in these stocks do so for want of finances for macro cap stocks.

    The nascent EV industry, both in Europe and the US, is working round the clock to establish and develop the demand for EV through awareness campaigns and other methods so that people embrace clean energy.

    In the US, products from Tesla Motors, Inc. (TSLA), GM and Ecotality, Inc. (ECTY) are making a significant contribution in the EV industry. Tesla Motors, a Silicon Valley company, registered its first profit of $11.2 million from the sale of its Model S sedan. It is this fact that inspired the surge observed in its Wall Street stock performance of 24% after the release of its first quarter figures. The uptick in sales has made the company consider venturing in Europe and Asia. Other than making electronic vehicles, the company has also been successful in producing batteries for electric vehicles.

    In Europe, new inventions drive up sales. For example, Renault has recorded an increase in sales following the launch of the Zoe, a new battery for sedan EVs. The Zoe raised the electric car sale up to 649 cars in February. Mercedes are also making EV in Europe but has not sufficiently penetrated the market, especially when compared to its fuel automobiles.

    However, both industries have seen a number of failures. The US government is desperately trying to find ways of recovering more than $171million it gave to Fisker Automotive, whose flagship brand was the Karma. The Karma used to retail at $103,000, even though production costs had exceeded $500, 000 for each vehicle. Nowadays, second hand models sell at 50c to the dollar, or less. The Karma has been derisively referred to as the modern day DeLorean.

    Better Place was an EV industry company founded by Shai Agassi. It intended to provide sell EV batteries at Battery Stations, therefore removing the need for an EV to be parked for hours on end while charging. Unfortunately, it was encumbered by hurdles such as incompatible batteries. To date, Better Place has lost about $500m, and it is reported that Agassi has left the firm. However, work continues to build the Better Place network in Israel, and Denmark, though the company is withdrawing from US and Australia.

    GM's Chevrolet Volt is also another model that is facing a decline in sales, precipitated by Nissan' Leaf and Tesla S models.

    Figure 1A Bar graph comparing EV stocks in different countries; Courtesy of EVI

    As from the graph above you'll realize that the total sum for the EV stocks in the mentioned European countries can hardly match the towering value of the US EV industry stock. From the study it is clear that the US EV industry progression is on the fast lane when compared to Europe bearing in mind that the number of countries in Europe as most E.V. firms in Europe lack full support from their government. Unlike Europe, the U.S government offers collective support to the growth of this industry and this is what Car Charging Group, Inc. translates to positive growth of the company through partnerships in building better infrastructures for EV in the U.S market.

    The U.S EV industry is growing into a more stable market for the economy and Car Charging Group, Inc. (OTCPK:CCGI) seems to be doing pretty well with the constructive effort from both the stakeholders and the government despite numerous uncertainties endemic to this market segment. Below are some of the key components that make this microcap stock perform well.

    Models

    The EV stocks also rallies with other microcaps stocks however the Car Charging Group, Inc. (CCGI) shows signs of emerging top in the automotive stocks in the years to follow. The private holding investment company based in Miami under the leadership of the founder and current CEO Mr. Michael D. Farkas, has a strong business model for the United State market, which has plenty of untapped opportunities despite pioneering the EV market in the beginning of the new millennium. The company dominates the electric car charging subsector of the EV industry.

    Its strong and formidable business model has enabled the company to be the countrywide provider of charging services in the US. It has been engaged in the acquisition of major and potential strategic points, and liaising with major stakeholders in related industries, such as Simon Property Group (SPG), the largest real estate investment firm in US. It has acquired various parking slots from retail groups, supermarket chains, educational institutions spread all over the country.

    The firm has recently consolidated its market dominance by acquiring other providers of charging stations, 350GREEN LLC , EVPass and Beam Charging. Furthermore, it has agreements with other charging companies, such as Icon Parking and Central Parking. This move implies that more EV owners will have access to more sophisticated charging infrastructure for their automobile.

    Finances

    Car Charging Group, Inc. (OTCPK:CCGI) receives major financial support from the U.S government which intends to drive the shift towards clean energy by innovations in the vehicle industry and also to reduce the dependency of the US economy on fossil fuels, as outlined in the California Assembly Bill 118 (AB118). The U.S government has allocation for grants and incentives to promote the electric car industry in all states.

    Conclusion

    Strategic collaborations with related industries and timely mergers mean that CCGI has a bright future ahead, and this future will see EV infrastructure brought closer to people. Future plans to expand their business to markets outside the USA are likely to lead to an appreciation of the stock values of this firm

    Furthermore, as it has filed for a patent for inductive charging, greater growth of the company is expected.

    This therefore makes the choice of this stock at this time a very wise decision to make.

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