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The short answer: Double Up Free Stock Strategy.

To be more detailed, let’s rewind to July 5, 2024. There I was, staring at EVGO, a company that seemed beaten down, priced for oblivion, and yet… still alive. So, I made a move: I put $314 into 115 shares of EVGO, each costing a very specific $2.73809. My plan? Simple—hope for the stock to double so I could sell half, recover my investment, and walk away with the rest of the shares for free.

Fast forward to October 7, 2024, and the unthinkable actually happened! I sold 46 shares at $6.88, pocketing $316—just enough to cover my initial investment, plus a tiny $2 profit. But here’s the real kicker: I now own 69 free EVGO shares. Yes, 69—completely free. And if you ask me, that’s worth a whole lot more than the two bucks.

Why I’m Holding Onto These 69 Free Shares Like a Treasure Chest

Let’s be real, in the world of investing, free shares are like unicorns—you don’t let go of them easily. But I’m not just holding onto these shares for the sake of hoarding free stuff. I actually like EVGO and its prospects in the ever-growing electric vehicle (EV) market. If you’re not familiar with EVGO, let me break it down for you.

EVGO operates one of the largest public fast-charging networks for electric vehicles in the U.S. We all know that the future may be electric. With the increasing demand for EVs, the infrastructure needed to support them—namely, charging stations—is set to boom. EVGO is right in the middle of this.

The Revenue Growth That’s Hard to Ignore

This company is far from a dead stock, despite being priced like one back in July. Take a look at EVGO’s recent revenue growth:

• TTM: Revenue: $207 million
• 2023 Revenue: $160 million
• 2022 Revenue: $54 million
• 2021 Revenue: $22 million
• 2020 Revenue: $13 million

That’s not just growth; that’s a hockey stick curve! EVGO’s revenue has multiplied in just a few years. For a company that was trading at less than $3 per share when I bought in, that kind of revenue growth makes you sit up and reconsider its potential.

A Debt-Free Company with Government Support

One of the most reassuring things about EVGO is that it’s debt-free. Let’s face it, in a world where companies are drowning in debt just to keep up appearances, a debt-free company feels like a rare gem. This means EVGO is in a healthier financial position to navigate the competitive landscape of EV infrastructure without worrying about burdensome interest payments dragging them down.

But wait, there’s more! In a huge vote of confidence, EVGO recently secured a $1.05 billion loan pledge from the Department of Energy (DOE). That’s $1.05 billion—enough to turbocharge their expansion plans and get more fast-charging stations across the U.S. This isn’t just a loan; it’s a signal that EVGO is being taken seriously as a key player in the transition to electric vehicles. If you want the nitty-gritty, here’s the article about the loan.

Price-to-Sales: A Steal at 3.48

Another thing I love about EVGO? Its Price/Sales ratio is sitting at 3.48. To put that in context, it’s a relatively inexpensive stock compared to its peers. Investors are paying just over three times its revenue to own a piece of the company. That leaves a lot of room for upside, especially as EV infrastructure becomes more and more critical in the race to adopt electric vehicles.

EVGO’s Stock Was Worth Three Times More in 2020

Here’s where things get even more interesting: EVGO’s stock was worth three times more just a few years ago. This tells me the potential for a rebound is very real. If it could command such a valuation in the past, there’s every reason to believe it can do so again, especially with the tailwinds in the EV sector and government support coming through.

Why I’m Holding EVGO Shares for the Long Haul

I’ve already covered my initial investment, so now I’m playing with house money. The 69 shares I own are free, and I plan to hold onto them for as long as possible. Why? Because I believe EVGO’s best days are still ahead. As the world continues to shift towards electric vehicles, the demand for fast-charging infrastructure will only grow, and EVGO is perfectly positioned to ride that wave.

Even if EVGO’s stock doesn’t shoot to the moon tomorrow, I’m comfortable holding onto these shares and letting time do its thing. After all, with the growth they’re showing, a debt-free balance sheet, and government backing, I’ve got every reason to believe that these free shares could become a lot more valuable in the future.

So, while the $2 profit might seem small, the 69 free shares of a growing company feel like a big win in the grand scheme of things.

Here’s to the next trade (and hopefully, another round of free shares)!