Ideanomics Inc (IDEX): it's at $2 because of several reasons in...

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JimWin

Re: stanlee1979 post# 3815

Friday, 05/23/2014 9:15:49 AM

Friday, May 23, 2014 9:15:49 AM

it's at $2 because of several reasons including
1. Current revenues are low (actually contracted in the last quarter) in relation to the current valuation
2. There's lots of uncertainty around plan execution and revenue generation (given what happened with the cable side; millions of potential customers, hardly any revenues)
3. There's lot of competition around in the Chinese environment (not just other companies, but pirating)
4. The stock has a lot of convertible shares; with a potential share count of ~ 35 mln; meaning $2 could really translate into a $70 mil valuation; i.e double the current market valuation
5. The share is being shorted

The share price reflects all of those reasons. I'm not surprised its at $2 right now
Could revenues increase exponentially? Sure. Could the share price increase sharply as a result? Sure. But until it happens...its all theory...it's been theory for the past several years.

If the company starts executing, the share price will shoot off; I'm not saying that the price can't get to $15..I'm just saying that $15 by August 2014 seems a bit much.