Latest Pivot Does Minimal To Bolster Scenario for IDEX Stock Charging Better

It is been an attention-grabbing and bullish 12 months for Ideanomics (NASDAQ:IDEX). The notice wasn’t all fantastic and therein lies a warning or two for IDEX inventory buyers. Let me explain.

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Most of the interest was because of to the company’s enterprise pivot. This sort of a go can be smart for shorter and long-phrase market gains. You in all probability do not have to have me to tell you that just after 2020’s socially distanced reality, when pivoting went hand-in-hand with a go into individual protective equipment in an effort to enable, as very well as financial gain from Covid-19.

Contemplate Ford (NYSE:F) and Typical Motors (NYSE:GM). Less than the route of the U.S. federal government the automakers turned ventilator suppliers. And more than a few drug organizations pretty much dropped every little thing and turned all their initiatives to come across profitable vaccines and therapies to fight the coronavirus. Today of study course our hats go off to Pfizer (NYSE:PFE), Moderna (NASDAQ:MRNA), Regeneron (NASDAQ:REGN) and decide on other folks in which that mission is becoming accomplished.

But back to the most new organization pivot at Ideanomics. And in our estimation, it’s a much less-than-reputable modify of way by the business.

IDEX Stock Lookups For Function

So, what is Ideanomics? We could pose that really query to the company’s management. Over the very last 15 or so several years, the firm has jumped from one particular warm marketplace to the other. As InvestorPlace’s Vince Martin points out, IDEX has offered and promoted by itself as a broadband supplier and video clip-on-demand perform in its previous. Much more not long ago, administration regrouped as a fintech cryptocurrency and blockchain business. Amazing and nimble, appropriate? Not so quickly.

It turns out the only reliable endeavors exactly where IDEX excels is pitching a hot-sounding concept that shoots largely blanks. The company’s observe document of success is sketchy at ideal. Seemingly, 2019’s outlier of approximately $43 million in gross financial gain was tied in component to a pair of cryptocurrency transactions, which finally went bust. So significantly for Ideanomics’ crown accomplishment.

Then comes 2020 and an electric powered auto industry that has taken hold of Wall Street’s fancy.

Today, Ideanomics’ mission incorporates monetizing the adoption of commercial electric automobiles or EV’s. Particularly, IDEX has — drumroll you should — pivoted or additional aptly reinvented alone as an EV engage in concentrated on the e-taxi market place, alongside with a pair investments in a private e-tractor producer.

The company’s Cell Power World wide (MEG) division is “busy” building its system for electric taxis, with an eye on increasing into other motor vehicles this kind of as buses and trucks. The company design unquestionably appears great on paper. And the price chart of IDEX inventory also has the appearance of good results going ahead. However, I’d warning today’s investors not to dismiss the prospect of historical past repeating by itself.

IDEX Inventory Every day Selling price Chart

Ideanomics (IDEX) bullishly trending higher but can it continue?
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With the EV market place charging increased this calendar year and a wave of IPOs and SPACs briefly riding the Tesla (NASDAQ:TSLA) halo impact, it is little marvel IDEX inventory was up in 2020. Also, with TSLA’s $650 billion valuation and gains in extra of 700%, probably Ideanomics’ return of 130%, its tiny-cap $550 million market place capitalization and sequence of larger highs and bigger lows on the rate chart make it a speculative gamble truly worth entertaining.

Bottom-line, I’m all for enterprising compact companies. Maybe specially so nowadays when a handful of mega-caps from Tesla, Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) keep so much influence. Still, the EV market has come to be overheated in 2020 and IDEX’s rubber has still to meet up with the street. Toss in a heritage of questionable names changes and a son’s organization which has shown a knack for flops and takedowns not compared with his famed father’s Entire world Wrestling Federation, and the pleasant information is to tread incredibly flippantly.

On the day of publication, Chris Tyler does not keep, directly or indirectly, positions in any securities outlined in this article.

Chris Tyler is a previous flooring-primarily based, derivatives industry maker on the American and Pacific exchanges. The details available is dependent on his experienced knowledge but strictly supposed for instructional needs only. Any use of this details is 100% the accountability of the individual. For supplemental sector insights and related musings, follow Chris on Twitter @Selections_CAT and StockTwits.