In June, Ideanomics stock was the subject of a nasty smear campaign by short-selling firm Hindenburg Research. We told our readers and subscribers that the shorts were wrong after the dust had settled to ignore Hindenburg and focus on the real fundamentals. Hindenburg’s agenda it to go short and then come out with their usual hit piece – XYZ stock is a fraud, going to zero, and here’s our report. XYZ stock drops. Hindenburg covers. Rinse and repeat.
However, the shorts are about to get their comeuppance with Ideanomics stock. We are expecting some fireworks and the shorts are going to get burned, especially now that they have shorted over 10% of the float.
As you can see from the chart above, Hindenburg was able to drop the stock from $4 to $1 as nervous longs dumped their positions. While it’s terrible many sold at a loss, for those that know Ideanomics stock it was a discount entry opportunity. There’s so much in the pipeline it’s crazy, including the Treeletrik spinoff, the bus deliveries, more orders, more ventures; including a possible US venture. Shorts are playing with fire as per the existing news already released, Ideanomics stock should be back at the highs. Taking a closer look, the shorts have overplayed their hand and are about to get squeezed.
About Ideanomics Stock
First up, here’s a little background info for those not familiar with Ideanomics stock. Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles and developing 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 includes DBOT ATS and Intelligenta which provide innovative financial services solutions powered by AI and blockchain. MEG and Ideanomics Capital provides global customers and partners with better efficiencies and technologies and greater access to global markets. The company is headquartered in New York, NY, and has offices in Beijing and Qingdao, China.
Reasons To Be Bullish On Ideanomics Stock
First up, 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.
Second, it’s important to look if there’s a high short position. Ideanomics stock has 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. If the momentum continues, the shorts will be forced to scramble further fueling the upside.
Third, 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.
Fourth, is the company making sales? It seems like every day or every other day Ideanomics announces a new order. Last year, the company did $18 million in sales.
Fifth, 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.
Sixth, 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.
Seventh, 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.
Eighth, 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.
Ninth, Ideanomics expects to generate recurring revenues from pre-paid electricity, wholesale electricity, and rental revenues from base station towers.
Tenth, 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.
Eleventh, the transition to cleaner and more efficient transportation is a global imperative. This trend cannot be stopped and it will propel Ideanomics stock higher.
Twelfth, the Chairman of Ideanomics is billionaire Bruno Wu and Vice-Chairman is billionaire Shane McMahon of the WWE. Insiders own 24% of the company.
These are just twelve reasons to be bullish on Ideanomics stock. There is a lot of news coming down the pike to propel shares to new highs. We believe Ideanomics stock has bottomed and shares have been making a steady climb off the lows. Shareholders are just waiting for an update on sales numbers from CEO Alf Poor and new PR’s to hit the tape. All we can say is, ignore the shorts and focus on the long run with Ideanomics stock.
As always, good luck to all (except the shorts)!
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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.