Navigating through the post Covid-19 world [Inpixon NASDAQ: INPX]
Updated: Oct 7
Although it boils down to some formulas to calculate the intrinsic value of a company, it does take a certain degree of conviction to enter a trade when you identify an undervalued company.
Every trader will always have his/her bear or bull argument so here is my bull argument for NASDAQ : INPX. This is my first time covering a stock which isn't on SGX so if you're only investing in SGX, do not read any further as the information contained in this post would not be relevant.
As always, my entries are not calls to buy or sell. They simply sum up my thoughts and serve as a reference point for me to learn from my successes and mistakes when I look back.
I came across this little counter during the IPO of INBX. A close friend of mine searched INPX instead of INBX and this was how I came to know of this company.
From a technical point of view, I really could not identify any clear chart patterns or shapes. The only really obvious indicator was the $1.10 support level that has been consistent since March 2020.
On to what they do,
Essentially they are an they are an indoor intelligence company. (More information here) When we look at mapping, we have those big boys like google maps etc. Unlike those companies, INPX deals with the interior of a building so for example when you open google maps and you look up a shopping center. You are able to see Levels 1-100 etc. thats kind of what they do. To add on to this, if say I had an appointment with a client at a huge building in say project room 123, the building developer could engage INPX to do up an app which would guide me from the entrance of the building to that particular room.
There are probably a hundred other companies out there who do this but for a company trading at $1, to me, this company for whatever unknown reason was DEFINITELY undervalued and therefore, to be honest, even without researching further, I bought into this company at $1.20.
Since then, I've done further research into the company and well yes there is indeed bad news such as the insolvency of this company and how, till date, it is still not profitable etc. so yes this company does have a certain degree of risk involved. To add to this, shareholders in general do not seem to see eye to eye with the CEO and to add to the frustration, there still ANGRY shareholders who to date who are holding on to shares bought at above $10.
On a more positive note, latest developments in the company include the acquisition of Nanotron (no its not a deception transformer) which is a company dealing in "Sensor based products transforming real-time data". Don't fully understand this but it sure sounds like vertical integration to me.
Apart from this I do like how they are exploring new markets for their product via workplace readiness. In the post covid world, even with a vaccine, precaution is still advised and their technology would compliment many workplaces as people start returning to work.
Honestly, I'm such a sucker for presentation decks like this as my work involves me creating decks like this every other day. Do check out the entire presentation deck by Inpixon here.
Quick note on volume, we are seeing massive volume spikes yesterday and the day before at the market open. Can't say for sure why these spikes happen but I'ld like to think that institutional players are loading up for a run. Could be some insider messing with volume who knows but as this is a bull argument, we'd assume more positive speculations.
All in all this company is not without its risks. I emphasize again that with every investment, there is no guaranteed return of your principal investment. Always set your stop losses.