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Allego - Lackluster Listing Leads To CAPEX Funding Issues And I'm Bearish

Apr. 01, 2022 10:18 AM ETAllego N.V. (ALLG) Stock30 Comments


  • The company was recently listed on NYSE through a SPAC deal, but redemptions reached 98%.
  • Allego plans to make capital expenditures of $1.46 billion between 2022 and 2026, which implies that the funds will have to come through debts and capital increases.
  • The company’s share price has soared to above $15, and the reason behind this seems to be that retail investors were attracted by the low share float.
  • I think the retail investor interest is likely to fade off in the near future and the share price will fall back below $10.

Woman And Child Charging Electric Car

aquaArts studio/E+ via Getty Images


I like writing about companies that lack coverage on SA, and today I'm taking a look at Dutch electric vehicle charging firm Allego NV (NYSE:ALLG). It was listed on the NYSE on March

This article was written by

Gold Panda profile picture

Gold Panda has been working as an M&A analyst for over 11 years. He's been investing since 2007. Preferring value to growth, he tends to take a relatively conservative approach in his investing. His focus is on small and micro-cap stocks, which he believes is the area which offers the greatest opportunity to exploit market mis-pricings.

Gold Panda is part of the team that runs the investing group Microcap Review. He provides a real-time portfolio to the group. Microcap Review focuses on three areas of opportunity in the micro-cap space: arbitrage and special situations, net-nets and undervalued stocks. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (30)

bazooooka profile picture
this one simmering again
Gold Panda profile picture
@bazooooka of course, the float is low
"Allego plans to make capital expenditures of $1.46 billion between 2022 and 2026, which implies that the funds will have to come through debts and capital increases."

The funding can also be secured by profits from their existing infrastructure...
Gold Panda profile picture
@qwerty11 with negative free cash flow? I doubt it
They always play "pop and crash" trick,this stock has a bad reputation.
A dutch cheater company .they always play "pop and crash"trick.this stick has a bad reputation.
@Barrondghtt Now that tulips became unfashionable they have to find other schemes to strip the public from their cash
Negligible float. Serious manipulation. None of the stock price action has to do with the underlying business. Up 40% today...may be down that much tomorrow. Good luck!
These post SPAC plays aren't investable. Day trade sure I guess so.
@DavidHHolmes Can there not be one SPAC that is good? If yes, I genuinely think ALLG is a strong candidate for this spot.
@qwerty11 Well it looks like its just another disappointing SPAC..
@DavidHHolmes True story (for now)
This is Europe's leading EV charging company. I'm not saying it's not overvalued (at $10), but I think there are way better short targets. Lots of (EV charging related) crap trades at $B+ valuation. Better to short those than this one...

+1 anyway for covering this company
Gold Panda profile picture
@qwerty11 "This is Europe's leading EV charging company"

For now, I have a hunch Ionity will crush them. Btw they have a deal with Tritium


BlackRock (BLK.N), the world's largest money manager, has joined electric vehicle charging (EV) venture Ionity in a 700 million euro ($788 million) funding round, providing a much-needed cash injection to speed up construction of high-power loading sites.

The investment, which also includes contributions from existing shareholders, will enable Ionity to more than quadruple the number of high-power 350 kilowatt charging points to 7,000 by 2025, Ionity said on Wednesday.
Good explanation of the redemption phenomenon and how a negative (high redemptions) can actually result in temporary buy/sell imbalances.
Gold Panda profile picture
@DavidHHolmes I was thinking about combining short selling with warrants, but not sure when these things can be exercised
@Gold Panda 30 days from the listing
@Gold Panda That doesn't work at all, why do you think the warrants trade at $1.00 currently. And of course shares are unborrowable (and options will not become available shortly).

I was expecting more from an experienced short seller like you. The warrants can only be exercised in March 2025 or earlier, if the company announces a warrant redemption...
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