Beware of EV charging station companies

Empire Financial Research’s Herb Greenberg sounds the alarm on the narrative surrounding EV charging companies. With CNBC’s Brian Sullivan and the Fast Money traders, Guy Adami, Tim Seymour, Karen Finerman and Jeff Mills. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

Well to have an electric car you need to you know charge it either at home or on the road and many companies who make charging stations they have also had their stocks on fuego but if you are thinking of plugging into the space maybe think again here to throw some cold water on the plug-in is a company who is a man who’s always plugged in herb greenberg senior

Editor of empire financial research cnbc contributor a good man and i’m glad to see you again herb you recently wrote about this no doubt raising the ire of the eevee fanatics why are you saying avoid the charging companies well let me put this in in context for you brian by the way it’s great to be with you again but let me put this in context with for for you

There’s a there’s a podcast i listen to it’s called the million dollar podcast it’s run by two guys i work with who are former hedge fund guys gay martial enrique ebayda and the concept of this podcast is that somebody who knows nothing about investing basically is trying to make a lot of money by listening to these guys so he comes in he says i want to make i

Have a thousand dollars to invest for 10 20 years and he says i have this brilliant idea he says i want to put it into ev charging stations and immediately without skipping a beat gabe goes that’s a terrible idea that he thinks about he goes it’s a despicable idea so why is and why am i here talking about this and why i write about it because what do you think

About it it’s like everything that seems so hot in the moment and remember we’re talking about the time ribbon came out we’re talking about the lucid time but what is the charging station what’s the reality of the business you know there will be increased competition there are no barriers to entry the space ultimately becomes commoditized and you can take this

Down the road to very different incarnations that would suggest you know they’re just you know you get price competition who knows how it’s going to go but i think it’s it’s one of those things that we’ve seen before with other types of businesses that sound great but it’s not the way you want to go into this if you’re looking for a longer term play hey herb it’s

Jeff mills uh quick question for you so um maybe sort of a two-parter but obviously not the charging companies uh maybe not even the automakers in the ev space so um would you want sort of more of the traditional ford gm do you think they’re going to continue to benefit and if not what related evie plays companies that might benefit from the trend but that aren’t

Directly manufacturing the cars would you look to well this is this has been a great this has been a great theme by all the folks i work with at empire because what they had is they had something they called technology as a service it was a theme but they were looking at the the the the pick and shovel type of guys so they were looking some of these have really

Run up but they were looking at and they store nvidia active and google because google you get the waymo play so you’re not getting the pure plays but at least you’re getting some exposure and if it’s really takes off you get that that that added kick which you’re already getting right now but it hasn’t even really kicked in so that’s that’s probably the safest

Way to go okay well it’s it’s a piece that everybody should read check it out on linkedin in other spots herb love seeing you again my friend hope everything’s great out there in san diego it is thank you founded in 1919 by the germans all right guy domini let’s trade this i mean evie go and some of these other names they’ve been hot herb makes some good points

You also got to buy the copper by the way a lot of these things get vandalized two people like to steal the the copper and stuff that are in them what’s your take on the the charging space yeah i’m i’m not advocating stealing copper from sites number one what i am advocating is to read herb’s work because as we’ve said for years it’s extraordinarily thoughtful

And you know i think herbert be the first person to tell you i mean these are not fast money trades necessarily but you avoid or you don’t don’t read herb stuff at your own peril what i will say is in this piece he also mentioned names like american tower which you know i wouldn’t have thought of and you read this piece and it starts to make sense so names like

Aptive american tower crown castle i mean these are names that have had tremendous runs but when you read herb’s piece you realize you know they’re at the forefront of something that’s really interesting so that’s where i would go the first place i’d go is to read what herb just wrote yeah and by the way i was just in the uk last week you know what they’re doing

There they’re putting charging stations effectively stations into lamp posts so it’s not like a dedicated thing it’s like linkedin to the power from the light which is kind of cool one one wonders if you can compete with the major utilities as well guy thank you very much you

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Beware of EV charging station companies By CNBC Television