Axiom Corp (OTCMKTS:AXMM) Accelerates Its Slide
Earlier this month the stock of Axiom Corp (OTCMKTS:AXMM) registered eight consecutive sessions of gains and as a result surged from $0.14 to a high of $0.47. The performance was truly impressive but when dealing with pennystocks you should never take anything at face value.
AXMM is no different – the uptrend was caused primarily by a new paid pump. An entity called AXMMStockReport has created a landing page dedicated to creating as much artificial hype around Axiom as possible. The disclaimer at the bottom reveals that OSLO Holdings LTD have provided $200 thousand as compensation for a 2 month promotional campaign.
This is not the first time OSLO Holdings are sponsoring a paid pump for the stock. Just a few months back they paid the pumper InvestorEdge to tout the company. Back then the pump pushed AXMM to an unrealistic high of $1.87 per share. Immediately after hitting such prices though the ticker got devastated as it crashed down to around 30 cents in just 6 sessions.
The current attempt to artificially inflate the price of the company seems to have lost its effectiveness recently. For the last couple of sessions AXMM has been sliding down the chart and after wiping another 11.3% yesterday the company now sits at $0.3325 per share. Even at this price the market cap of the company is over $21 million. Is such a valuation even remotely supported by AXMM’s underlying fundamentals? Well, we’ll let you answer that question for yourselves after taking just one look at the latest financial results of the company. At the end of March Axiom had:
• $137 thousand cash
• $235 thousand total current assets
• $480 thousand total current liabilities
• $11,301 revenues
• $384 thousand net loss
So why would anyone be so determined to lift AXMM up the chart that not one but two pumps have been launched in such a short time? Back in 2012 a total of 26.4 million shares were issued at $0.0015 each. The owners of these shares could continue to reap massive profits by dumping them on the open market as long as there is sufficient interest in the company.
AXMM should be regarded as an extremely dangerous choice. The previous promotion already showed how disastrous it could be to miss the right moment to shed your holdings. Not to mention that on its own the company could find it nearly impossible to support its share price. On June 16 they published a new PR announcing their intent “to file provisional patent applications over the use of several design, manufacturing, and process improvements made by the company to the PaperNuts original intellectual property.” As you can see from the chart the PR had absolutely no effect and on that day AXMM closed over 2% in the red.
