It’s higher to specialize, or to diversify? Traders preferring to broaden their horizons into a number of segments ought to think about Ideanomics (NASDAQ:IDEX) as IDEX inventory represents a broad vary of market sectors.
I’m not saying that this firm is ideal. As we’ll see, from an earnings perspective, there’s definitely room for enchancment.
Alternatively, IDEX inventory is reasonable and it tends to pop infrequently. You by no means know when the subsequent moonshot would possibly occur.
So, in the event you’re able to open your thoughts to new concepts, then I invite you to take a look at Ideanomics.
A Nearer Take a look at IDEX Inventory
Initially, let me say that penny shares contain danger and subsequently, traders ought to keep small place sizes with them.
IDEX inventory isn’t any exception to this precept. This inventory has the potential to double shortly, or to get minimize in half.
On three separate events – in 2017, 2018 and 2021 – the bulls tried to push the inventory above $5 and preserve it there. Every time, they couldn’t maintain the rally.
For the previous few months, IDEX inventory has clung to the $3 space, give or take just a few cents. Might it’s basing for one more run to $5?
It’s definitely potential. Nevertheless, you would possibly wish to take earnings if it does attain $5 once more, since there’s such sturdy resistance at that value level.
Lastly, I ought to point out that Ideanomics has trailing 12-month earnings per share of round -32 cents. The stockholders will certainly wish to see this quantity flip optimistic in 2021.
It’s really laborious to maintain monitor of the variety of market classes that Ideanomics is concerned with.
As an illustration, Ideanomics announced its plan to acquire US Hybrid, a California-based clear transportation firm.
Additionally, the corporate acquired a majority stake of the gross sales and distribution arm of Treeletrik, an electrical car firm in Malaysia.
Furthermore, Ideanomics acquired Timios Holdings, a U.S.-based settlement and title firm.
And right here’s one other one which’s utterly out of left subject. Only recently, Ideanomics launched TM2, a worldwide know-how metals buying and selling platform.
It’s an fascinating concept, I have to admit.
Apparently, TM2 enables institutional traders to commerce know-how metals resembling cobalt (which is utilized in batteries), tellurium (utilized in photo voltaic panels and semiconductors) and rhodium (utilized in catalytic converters).
One good characteristic of TM2 is that the metals traded on the platform are 100% bodily backed. This permits the traders to “have direct title to the underlying bodily steel,” in response to Ideanomics.
Plus, the bodily metals could be purchased and traded on TM2 with instantaneous settlement. It will likely be fascinating to see whether or not this platform turns into common with institutional traders worldwide.
In case Ideanomics wasn’t already diversified sufficient, now we will add electrical tractors to the corporate’s record of area of interest segments.
Not way back, Ideanomics fully acquired California-based Soletrac. That firm manufactures and distributes zero-emission electrical tractors that use clear, renewable sources of power.
The press launch states that Soletrac’s tractors are 100% battery-powered. It additionally observes that Soletrac has “restricted competitors” within the North American electrical tractor market.
I anticipate that over time, we’ll see extra electrical tractor start-ups. Subsequently, I commend Ideanomics for anticipating this pattern and making an early transfer.
Ideanomics CEO Alf Poor expressed his geographically broad aspirations for this new acquisition.
“With farmers and enterprise operators desperate to transition from diesel to sustainable options, we intend to make Solectrac the dependable, go-to model not simply right here in North America, however throughout the globe,” Poor acknowledged.
The Backside Line on IDEX Inventory
The primary level right here is that Ideanomics, because the title implies, is all about concepts.
Or extra exactly, the corporate places many alternative enterprise concepts into motion.
For those who’re on board with that, and wish to improve the variety of your portfolio, be happy to take a small place in IDEX inventory.
On the date of publication, David Moadel didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
David Moadel has supplied compelling content material – and crossed the occasional line – on behalf of Crush the Avenue, Market Realist, TalkMarkets, Finom Group, Benzinga, and (after all) InvestorPlace.com. He additionally serves because the chief analyst and market researcher for Portfolio Wealth World and hosts the favored monetary YouTube channel Trying on the Markets.
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