Axion Power International, Inc. (OTCMKTS:AXPW) Shoots Up on Record Volumes
In the Pennystock world it is not that common for a company to have a completed product not to mention one that is both innovative and with great potential – Axion Power International, Inc. (OTCMKTS:AXPW) have exactly that. Even if a company has a product many find it impossible to generate even a dime in revenue – AXPW have continuously reported millions in revenues. So why is then their stock going nowhere but down for the past 3 years?
Ever since AXPW reached $1.20 in early 2011 they have been slowly losing positions and last year the negative momentum picked up speed. This January the stock dropped to its all-time low of $0.08 per share.
One of the major reasons for the depressing performance is the fact that the company has been unable to show any kind of progress for quite a while. They are still doing tests on a locomotive with Norfolk Southern, they have their deal with ePower Engine Systems and the PowerCube that has been connected to the PJM grid network since November 2011 but have failed to move forward.
The last quarterly report showed very little improvement in the sale of their lead-carbon PbC batteries over previous periods. At the end of October AXPW had:
- $1 million cash
- $5.4 million restricted cash
- $10 million total current assets
- $5 million total current liabilities
- $2.2 million revenues
- $4 million net loss
Judging by the lack of any significant announcements since that report was filed the last quarter of 2013 shouldn’t offer any different results.
And still 2.2 million in revenues would be quite impressive if the company was able to control their spending. They have been burning through quite a lot of cash which led to the May 8, 2013, private transaction in public equity, or in other words, AXPW secured themselves $10 million in the form of toxic funding. The fact that $1 million of the sum came from insiders of the company didn’t remain unnoticed by investors.
As a result of the deal the authorized shares were increased to $350 million while the outstanding shares jumped from 133 million in August to nearly 200 million at the end of January. The scary part is that according to AXPW‘s own words they will have to look for a new source of funding during the fourth quarter of 2014.
Still, at the end of last week AXPW suddenly surged up the chart and in just four sessions climbed from below 10 cents to $0.2 at the end of Friday’s trading. The number of traded shares was even more impressive and on Thursday the record amount of 5.9 million shares changed hands.
The sudden spike is not supported by an official announcement or a new filing so how sustainable the new price ranges are going to be is a speculative bet. Be sure to do your own research and plan accordingly taking into account all the risks associated with the stock.
On Friday the potstocks of HEMP, Inc (OTCMKTS:HEMP) and Cannabis Science, Inc. (OTCMKTS:CBIS) wiped more of their hype-induced gains. HEMP dropped by 4.9% and closed at $0.107 while CBIS ended the week 5.4% in the red at $0.15.
