As mentioned in the latest paid newsletter in support of Axion International Holdings Inc. (OTC:AXIH), low-priced stocks such as AXIH could potentially bring investors enormous profits. The author of this newsletter got paid $15 thousand to create this e-mail and distribute it among investors shortly after the end of yesterday’s session. However, to what extent could AXIH stock possibly skyrocket now
If the company’s official press releases can be considered 100% credible, then the news that AXIH had just acquired a new patent in the field of fire retardants should evidence that the company is really working hard to make it. This patent, in particular, has been issued to protect the very formulation of the retardant, as well as the way in which it will be applied to objects in order to make them fireproof.
In addition, Axion claims to be producing novel building materials and railroad ties using patented plastics recycling technologies.
Nevertheless, AXIH’s financial results for the last couple of quarters do little to convince investors that buying AXIH stock is a commercially viable investment.
On the one hand, the company has been losing an average of $2 million for each of the last five quarters. While last quarter has generated the highest amount of revenue, i.e $1.3 million, it has also registered AXIH’s biggest net loss so far (almost $3 million). On the other hand, AXIH’s balance sheet as of Jun. 30, 2011 shows cash reserves in excess of $4 million and a working capital surplus of approx. $5 million.
The six-month chart reveals that, except for September, AXIH stock has more or less been on the decline. Provided that the company succeeds in popularising its technologies, its stock could have every chance of breaking the $1 benchmark in the short term.
