There is no ray of hope left for Axiom Corp (OTCMKTS:AXMM) as it keeps getting crushed by shareholders and investors. Though there is no new development reported by the company, yet the stock is being trashed by one and all.
Pump and dump
Axiom Corp (OTCMKTS:AXMM) makes a case of an exceptional penny stock that has climbed all the way up to $1.87 and then journey back below one cent almost immediately. The reason for the company to ascend to such highs was a result of hype created by InvestorEdge, but, unfortunately, the excitement was short-lived. The series of pump articles aimed at creating artificial interest in the stock appeared to be a plan chalked by a few shareholders from 2012, who wanted to unload their shares and book profits.
After the recent pump and dump, the market cap of the company stands at $6 million, which is in wide disparity with the company’s real financial position. As per the most latest filing by the company pertaining to its first quarter, it held a cash reserve of mere $137,000. The current assets and liabilities of the company are $235,000 and $480,000 respectively. The company said to have earned revenues worth $11,301 while its net loss stands at $384,000. Going by these figures, it is best to stay away from the stock at this point of time.
Though it is usual that such a drastic crash follows a bounce, but still, it is difficult to take such call solely on the basis of pump articles. Axiom Corp (OTCMKTS:AXMM) released its last press release in mid-June when it had announced the development related to its majority-owned subsidiary, PaperNuts Corporation. The company had informed that PaperNuts has filed applications with the United States Patent and Trademark Office (USPTO) to secure a patent for innovations in the latest packaging technology.
The stock of Axiom Corp (OTCMKTS:AXMM) crashed by nearly 47% to $0.0374 during the previous trading session as a total of 823,000 shares changed hands.