Ideanomics Inc (NASDAQ: IDEX) is running for the top yet again this morning, following up on the dramatic gains that we’ve seen from the stock as of late. While there has been a strong run so far, I’m here to tell you, the gains are far from over. Ultimately, there are three reasons that I believe IDEX stock has plenty more room to run.
Reason #1: IDEX Stock Will Benefit Greatly From A Joe Biden Presidency
Joe Biden recently won his bid to become the next President of the United States. That’s huge news for Ideanomics and any other clean transportation or clean energy play. Ultimately, Joe Biden has spent several years warning consumers and politicians about the dangers of burning fossil fuels and what the United States needs to do in order to move into the clean, green energy and transportation path.
Now, with Biden working his way into the White House, there’s a strong chance that the changes he wants to make will go through. For IDEX and others in the clean transportation and clean energy space, this means the potential for government grants, tax cuts, and increased demand as a result of consumer tax cuts for those that buy into the clean and green movement.
Considering the fact that IDEX is cornering the commercial electric vehicles market, it only makes sense that the company will be a major beneficiary of the regulatory changes that are likely to come down the line under the Joe Biden Administration.
Reason #2: The Double Down Investment On Solectrac
That’s big news.
Think about it, IDEX is already cornering the commercial electric vehicles market. That’s big in and of itself. However, with its investments in SolecTrac, the company is moving from commercial to purpose driven. Essentially, fi there’s an electric vehicle with a purpose other than moving a single family or group of friends from point A to point B, there’s a strong chance that Ideanomics wants to play in the game.
All in all, 10 years down the line, the company could be the cornerstone in commercial and industrial vehicles that operate without a need to burn fossil fuel. That’s an incredibly valuable proposition.
Reason #3: Profits
Profits are hard to come by in the electric vehicles space, especially for the smaller companies. However, IDEX has been the exception to that rule. With a market cap of under $700 million, the company is definitely in growth stages, but is already pushing its way to profitability.
In the last quarter, the company generated a loss of just $0.03 per share, up from a loss of $0.15 on a sequential basis. That’s great news, and suggests that positive earnings are just around the corner.
It’s also important to note that IDEX filed a prospectus with the SEC over the holiday weekend. The company said that it has sold 13.5 million shares of common stock to YA II PN, Ltd. on November 24, 2020, under YA’s commitment to purchase shares from time to time. The company also sold 13,333,333 shares of common stock to YA on November $25, 2020. As a result of these transactions, the company has added $63,366,250 to its bank account, giving it all the funding it needs for the growth ahead.
The Bottom Line
The bottom line here is simple. Ideanomics is the right company, making the right products and business deals, in the right political climate. All told, the stars are aligning perfectly in order for the stock to be the next big play.
Moreover, through the tremendous growth in the value of the stock as of late, IDEX has been able to raise a large amount of funds without causing the stock to fall, giving it the runway it needs to move forward toward profits. All in all, if you’re not paying attention to IDEX stock now, you’re missing out!
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