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Ideanomics Rallies Back Above Key $1 Level As Volatility Continues

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Ideanomics Rallies Back Above Key $1 Level As Volatility Continues

Volatility in Ideanomics Inc (NASDAQ: IDEX) was continuing Monday as investors continue to digest a roller coaster of recent news headlines.

What Happened? Ideanomics shares dropped sharply last Tuesday after the company reported $10.6 million in revenue in the third quarter and an operating loss of $12 million.

Perhaps the bigger news for investors was that the company disclosed it had received a notice of delisting from the Nasdaq following 30 consecutive days closing under the minimum listing requirement of $1 per share.

Related Link: Genius Brands Announces Buyout Of ChizComm

What’s Next? The good news for investors is that the Nasdaq granted Ideonomics a 180-day grace period to regain compliance, and the company followed up a lackluster earnings report with news on Thursday that it is acquiring title and settlement services provider Timios Holdings at a price of $40 million.

Ideanomics’ core business is distributing commercial electric vehicle fleets to industrial customers in China. However, the company is hoping to integrate Timios into its Ideanomics fintech business unit.

“Our ethos is to look for companies that can be disruptive to industries. It's not easy to break into the title business and Timios has a strong and growing footprint," Ideanomics CEO Alf Poor told Benzinga on Monday.

"Timios' data driven approach is bringing the title search business into the 21st century and with its business model we believe there are strong synergies and that the company fits well into the DNA of Ideanomics."

Ideanomics investors are hopeful that Timios’ profitability and growth profile will help boost Ideanomics' top and bottom-line numbers.

IDEX Price Action: Ideanomics shares were up 21.92% at $1.21 at last check Monday.

Benzinga’s Take: Regardless of whether Timios will prove to be a wise acquisition in the long-term, it may have done the trick in giving Ideanomics some breathing room in the near-term. Assuming the volatile stock can hold onto at least some of its big Monday morning gain, Ideanomics is on track to close above $1 for the first time since late September, potentially resetting the Nasdaq’s 30-day minimum closing price clock.

 

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