Ideanomics, Inc.

Ideanomics, Inc. (NASDAQ: IDEX) is focused on promoting commercial electric vehicle adoption and providing financial services and fintech products. Mobile Energy Global (MEG), the Company's electric vehicle division, offers bulk-purchasing discounts on commercial electric vehicles, EV batteries, electricity, and financing and charging options.

Key Highlights

• The company reported YoY growth of 154.68% in total revenue to USD 27.05 million in Q3FY21 (ended September 30, 2021) compared to USD 10.62 million in Q3FY20.
• IDEX net loss expanded to USD 50.85 million in Q3FY21 from USD 8.29 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents (including short-term investments) of USD 315.37 million and total debt of USD 0.42 million.
• Significantly low ROE of -88.2% in Q3FY21 vs. industry median of 13.8%.
• On April 13, 2022, IDEX, a global corporation dedicated to speeding the commercial adoption of electric vehicles (EV), will make commercial EVs available to small businesses in New Jersey. While the New Jersey Zero-Emission Incentive Program (NJ ZIP) reduces the upfront capital required for enterprises to purchase medium-duty electric vehicles, Ideanomics provides small businesses with operational expense (OPEX) finance solutions to help them transition electrification.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 0.80 to USD 3.61.

Conclusion: Considering the company’s surge in topline, expansion of net losses, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the closing price of USD 0.8827, down 0.75%, as of April 14, 2022.

Technical Price Chart (April 14, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of April 14, 2022

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.