Momentum & Growth

Ideanomics: Buy More Or Take The Loss?

One of the hardest penny stocks to own right now is Ideanomics. Scared longs have been dumping their shares after what Hindenburg Research has done…

One of the hardest penny stocks to own right now is Ideanomics. Scared longs have been dumping their shares after what Hindenburg Research has done to Nikola. We believe this is the wrong move as Ideanomics is not Nikola. We repeat – Ideanomics is not Nikola. For those that say we are only pumpers, we said this about Nikola when the Hindenburg Research report hit the tape.

We exist solely to make money for our readers and subscribers. If we didn’t, we would not have over 100,000 subscribers. It’s why we look to separate facts from fiction and deliver actionable results. Matter of fact, we told Nikola investors to sell Nikola and buy Workhorse Group back in June. As you can see from the chart below, WKHS has been a killer call for our subscribers.

WKHS Daily Chart

WKHS Daily Chart

In this article, we are going to make the bull case for Ideanomics and why longs shouldn’t abandon hope and sell at the lows.

About Ideanomics

First up, here’s a little background info for those not familiar with the stock. Ideanomics is a global company that facilitates the adoption of commercial electric vehicles and supports next-generation financial services and fintech products. Its electric vehicle division, Mobile Energy Global (MEG), provides group purchasing discounts on commercial electric vehicles, EV batteries, and electricity, as well as financing and charging solutions.

Ideanomics Capital provides fintech services that include intelligent and innovative solutions powered by AI and blockchain. Together, MEG and Ideanomics Capital provides its global customers and partners with more efficient solutions for a greener economy.

The company is headquartered in New York, NY, with offices in BeijingGuangzhou, and Qingdao, and operations in the U.S., ChinaUkraine, and Malaysia.

Why Ideanomics Is Not Nikola

One, Nikola never manufactured a vehicle or generated any sales. Ideanomics Mobile Energy Global (MEG) division total units delivered were 203, with 25 heavy trucks and 178 Taxis/Ride-Hailing for the month of July and August. Ideanomics had 557 units invoiced (pending expected delivery) in July and August.

Two, read what Smartrick had to say yesterday on Twitter.

Also, what the The_Wolf had to say as well.

The_Wolf further said:

Third, one needs to look at the longer-term picture. Within the past five years, Ideanomics stock was as high as $7, so shares have a long way to go before making new highs.

IDEX 5-Year Chart

IDEX 5-Year Chart

Fourth, led by Hindenburg Research, there are a lot of bears betting against the company with 10% of the float short. At current levels, the shorts have bet $20 million that the stock is going lower.

Fifth, many are complaining about CEO Alf Poor being silent on Twitter. How did being a big mouth work out for Nikola founder Trevor Milton? Alf is taking the prudent route and being quiet. The results and upcoming PRs will speak for themselves.

Sixth, is Ideanomics stock in a hot sector with high gross margins? Check and check. EVs in China is perhaps the hottest sector on the planet right now as China rushes to switch from fossil fuels to electric vehicles.

Seventh, Ideanomics’ Chinese subsidiary, Qingdao Chengyang Ainengju New Energy Sales and Service, has opened the largest auto trading market in Qingdao, offering a one-stop solution for electric vehicle (EV) sales & services.

Eighth, Ideanomics will work closely with Contemporary Amperex Technology Ltd. (CATL) & PetroChina to start adding EV charging capabilities to fuel stations in Nanjing. This is step one of a broader rollout of gas station conversions across China.

Ninth, Ideanomics utilizes an S2F2C “Sales to Financing to Charging” Model: Sales – facilitating group purchasing by offering fleet operators discounts on large unit orders. Financing – helping fleet operators secure financing to purchase EVs.

Tenth, Ideanomics has established relationships with various energy companies, utilities, and new infrastructure-related companies to help deliver not only charging solutions but clean energy solutions to the whole technology ecosystem, such as 5G base stations.

Eleventh, Ideanomics expects to generate recurring revenues from pre-paid electricity, wholesale electricity, and rental revenues from base station towers.

Twelfth, Ideanomics owns 51% of Treeletrik, a Malaysian-based EV manufacturer whose business is primarily in logistic vans, mopeds, and scooters. As the China EV market matures, its manufacturers will face oversupply issues. This is where Treeletrik comes in.

Thirteenth, the transition to cleaner and more efficient transportation is a global imperative. This trend cannot be stopped and it will propel Ideanomics stock higher. California announced that it will ban the sale of all new gas-powered cars in 2035.

Fourteenth, the Chairman of Ideanomics is billionaire Bruno Wu and Vice-Chairman is billionaire Shane McMahon of the WWE. Insiders own 24% of the company.

Fifteenth, Ideanomics just hired Dr. Liqing Hu as Chief Scientist for Medici Motors Works. Dr. Hu will be based in China. Dr. Liqing Hu is a celebrated innovator and pioneer in the field of hydrogen energy in China. He completed his post-doctoral research in China, then worked for Ballard Systems in Canada before returning to China.

Sixteenth, Ideanomics has over $36 million in cash and a market cap of just $197 million.

Bottom Line

We see Ideanomics as the most undervalued EV player on the planet. This is a stock investors should buy and forget about. One day, it will wake up and you will see an SPI-type move. There is a lot of news coming down the pike to propel shares to new highs. All we can say is, ignore the shorts and focus on the long run with IDEX stock.

As always, good luck to all (except the shorts)


Disclosure: We have no position in NASDAQ:IDEX or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.

Image by Gerd Altmann from Pixabay

Ideanomics: Buy More Or Take The Loss?
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