Are Investors Returning To Axiom Corp (OTCMKTS:AXMM) ?

For the past two sessions the stock of Axiom Corp (OTCMKTS:AXMM) has been making some sizable jumps up the stock chart. On Wednesday it surged by over 29% and closed at $0.0355 while yesterday the company gained another 18.3% closing at $0.042 per share. The traded volumes also experienced a significant boost with more than 4.2 million shares changing hands yesterday. Despite the impressive performance approaching the stock remains extremely dangerous.

AXMM is one of the riskiest stocks around. So far in the span of just several months the company was touted by two paid pumps and the results were simply horrific. Back in March the pumper Investors Edge created a landing page and the artificial hype pushed AXMM to a high of $1.87 per share. Six sessions later though and the stock had crashed down to 30 cents per share. The pumpers were not ready to give up and last month a new landing page was put online by the entity called AXMM Stock Report. This page is still active even at the moment. The paying party for both pumps was OSLO Holdings LTD.

On June 15 AXMM issued an 8-K filing acknowledging the presence of the pump and it had a devastating effect on the stock. The ticker plunged for the bottom of the chart and from an opening price of $0.4465 on June 15 it slid all the way down to a new 52-week low of $0.017 registered on July 2. Even after the gains from the last two sessions all those who bought in during the pump-induced highs and are still holding their shares are facing losses of more than 90%.

The problem is that even if you disregard the risks associated with the pumps and the fact that a few year back AXMM sold 26.4 million shares priced at $0.0015 each the red flags surrounding the company don’t get any less serious. One look at the latest financial report is enough to show just how grim AXMM‘s financial state really is:

• $137 thousand cash
• $235 thousand total current assets
• $480 thousand total current liabilities
• $11,301 revenues
• $384 thousand net loss

In addition the current upwards move doesn’t appear to be supported by anything – the last PR published by the company is now nearly two weeks old. Trading AXMM’s stock demands the use of caution and before committing to anything you should do extensive due diligence.