Will Axiom Corp (OTCMKTS:AXMM) Fall Below 1 Cent?

All it takes is just one look at the chart of Axiom Corp (OTCMKTS:AXMM) in order to understand just how disastrous the last couple of sessions have really been. On June 11 the stock of company hit recent high of 47 cents per share. Although it took a step back after that the stock still kept most of its gains opening the June 23 session at 37.4 cents.

Yesterday, after crashing by another 32.5%, AXMM closed at $0.02525 per share. That is right, in just seven sessions the company saw over 93% of its value simply evaporate. Investors who bought in at the high of 47 cents and are still holding on to their shares are now facing losses of nearly 95%.

Yesterday’s session also saw the biggest daily volume registered by AXMM after more than 11 million shares got dumped on the market. The corresponding dollar value reached $313 thousand. Just for comparison the 30-average for the stock currently sits at 1.2 million shares but most days AXMM rarely registered more than 300 thousand traded shares.

In our articles we continuously warned you that such a nightmarish outcome is definitely a possibility for AXMM. Just a few months ago, back in March, the stock already showed that it is perfectly capable of obliterating massive chunks of its value in mere sessions after it crashed from a high of $1.87 per share to around 30 cents in around six sessions.

There is another similarity – the March high was achieved through a paid pump led by the outfit InvetorsEdge while the June high of 47 cents was reached thanks to a landing page pump carried out by an entity called AXMM Stock Report. The paying party for both promotions is one and the same – OSLO Holdings LTD. With 26.4 million free-trading shares that were sold back in 2012 at $0.0015 each some people definitely stood to gain millions in profits thanks to the artificial hype created by the pumps.

After the recent plunge towards the bottom of the chart AXMM’s market cap shrunk to just $1.6 million. Even that number is far too inflated for the fundamentals of the company to support though. AXMM’s latest financial report revealed that at the end of March the company had:

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

Even if the stock manages to bounce a more prolonged recovery at the moment seems less than likely. Not to mention that if the people who own the millions of discounted shares have shed the entirety of their holdings the paid pump may come to an end and the stock will be left on its own. And this could mean that the stock may fall beneath the 1 cent per share mark.