trading over 1 million shares on the market.Obviously, the only reasonable explanation on the unexpected massive trade appears to be the latest news by Axion Power. On Monday, the company reported it has received a series of orders for the production and immediate delivery of flooded lead-acid batteries. Axion is highly encouraged by the order and expects weekly shipments with a total minimum purchase price of $3.5 million dollars and a potential maximum purchase price of $8 million dollars.
Being published, the optimistic expectations fueled up AXPW stock price and it began to rise up. Though, it is yet not certain how far it will go.
Last month, AXPW got the up move again, but this time on no news released. However, a discussion on investorshub.com message board suggested that the climb was due to a presentation to investors’ audience. At the same time, traders mentioned some problematic issues of Axion, which made them unsure in the company’s investment. Though, none of the hypothesis has been confirmed yet. Meanwhile, Axion is advancing up again, while one of the company’s owners, Mr. David Gelbaum, has been disposing AXPW common stock during the past week, despite the fact that the company has already issued a large number of warrants and options that may significantly increase the number of the common shares outstanding.[BANNER]
Axion Power International, Inc. is a development-stage company engaged in developing an energy storage device that uses carbon electrode assemblies. The company’s 10-Q report points that its assets are higher than the liabilities, however, the deficit accumulated during the development stage is still over $64 million. Besides, the stockholders’ equity has decreased and the net loss applicable to common shareholders has not been covered.
The management of Axion believes it can maintain the current level of operations and capital expenditures through 2011 without further capital infusions. However, the team anticipates to incur even more substantial and possibly increasing losses for the foreseeable future that will have an adverse impact on the company’s working capital, total assets and stockholders’ equity.
