Axesstel, Inc. (OTCMKTS:AXST) Crashes After Q2 Unfavorable Projections
In a single day Axesstel, Inc. (OTCMKTS:AXST) lost nearly a third of their value. From the get-go they dropped hard and barely managed to claw their way to a $0.71 close – a good 29.7% less the previous day. Traded volume also saw record numbers reaching 600 thousand shares for a company with an average of 20 thousand.
AXST is a provider of wireless voice, broadband access and connected home solutions and they had an amazing performance during 2012. For the most of it the ticker was on a constant uptrend that saw it rise by 600% from $0.3 to as high as $1.9. This year however things haven’t been so silky-smooth. Year-to-date they have lost 60% of their price and investors are becoming increasingly concerned. AXST failed to meet the positive expectations for the first quarter which brought in less revenues than the same period last year. According to their 10-Q report they had the following financials:
- $2.1 million cash
- $24.8 million total current assets
- $26.9 million total current liabilities
- $10 million revenues
- $84 thousand net income
Still these numbers are miles ahead of those posted by the vast majority of pennystock companies. But that doesn’t mean the company is without risks as $21 million of their assets are listed under accounts receivable meaning that they are having some troubles collecting them.
Nevertheless the major reason for yesterday’s plummet is the announcement regarding their business operations during the second quarter of the year. Due to product delays, lower demand and the transition to the next generation of products taking more time than anticipated projected revenues have fallen as low as $2 million. This caused investors to scramble to cash in their holdings.
Another company that suffered a disastrous session was Norstra Energy, Inc (OTCBB:NORX) who lost nearly 20% . The company had a lot of red flags surrounding it which we covered in greater detail. The groupd of heavy losers is also joined by Lot78, Inc. (OTCMKTS:LOTED) who have been having a rough time since the start of June.
Will ASTX be able to stop the bleeding of their stock and entice investors to stay for the long run remains to be seen. The time for the next financial report is coming closer and closer and it may spark another wave of selling.
