Global Axcess Corp. (OTCMKTS:GAXC) Shoots For The Sky After Promotion
Yesterday Global Axcess Corp. (OTCMKTS :GAXC) fought back after the fall they suffered at the end of last week. A 58% surge helped them close at $0.079. Traded volume wasn’t too shabby either, reaching 1.5 million shares, which is unprecedented for this year as the company often finishes the sessions with the meager 200 traded shares.
GAXC is an independent provider of self-service kiosk solutions. They operate primarily through their two subsidiaries – Nationwide Money Service and Nationwide Ntertainment Services, Inc. The fisrt is engaged in the business of operating a network of ATMs while the second focuses on operating DVD rental kiosks.
Undoubtedly the positive movement of the ticker was largely due to the pump emails sent by StockMister and most of the affiliates of Rising Penny Stocks. They are being rather generous this time as all of them disclosed receiving no compensation for the advertising. The promoters all went into great detail about the potential of the DVD business even trying to draw parallels between GAXC and RedBox. But when we took a closer look at the company’s annual report we found that GAXC has informed its primary customer that they intend to sell the DVD business. This is a prime example that you should never take what the alert emails say at face value.
Another line the pumpers loved to use was quoting the amazing revenue of $31 million for 2012. That’s why we decided to see what other financials GAXC has:
- $2 million total current assets
- $18 million total current liabilities
- $100 thousand cash
- $12 million net loss
It turns out that the amassed revenue is not nearly enough for the company to end up with a positive balance sheet. Even more worrying is the 5 times increase in net loss compared to 2011 when it was just $1.8 million.
The ATM side of GAXC‘s business is still doing well and they have plans to expand it even further. If the pump doesn’t adversely affect the stock it may continue upwards but doing your own due diligence is a must before attempting any trades.
