A mid-day promotional newsletter in support of Axion International Holdings Inc. (OTC:AXIH) pushed AXIH stock up 18% by the end of the trading session. Clocking in at $0.86 per share, AXIH took a breath of fresh air, shifting a six-month record volume of 139 thousand.
As it is, the promotion in question marks just another chapter in the advertising campaign in favour of AXIH stock organized by a particular third party. The current initiative adds additional $15 thousand to the overall bill which has now reached $50 thousand. Since no end has been announced, investors should not be surprised if the promotional game with AXIH stock continues in the weeks to come, which does not necessarily mean that it will be bound to succeed, though. As seen on the chart, the first three attempts to pump AXIH high did not materialize.
Headquartered in New Jersey, Axion International Holdings, Inc. specializes in offering structural building solutions from 100% recycled plastics. Earlier today, the company announced its EcoTrax(TM) railroad ties had been featured in a green technology segment which aired yesterday on CNBC.
Four days ago, the company published a quarterly report for the third calendar quarter of 2011. The market reaction led to a 9% price depreciation since AXIH’s balance sheet contained:
- cash reserves in excess of $2.6 million;
- working capital surplus of $3.1 million;
- $700K in revenue vs. $409K a/o Sep. 30, 2010;
- quarterly net loss of $1.7 million as opposed to a net loss of $580K incurred in Q3 of 2010.
While AXIH has shown significant improvement of both its cash reserves and net working capital, its negative financial result has also increased considerably, which will definitely be a major setback for prospective investors.
