This month Axion Power International, Inc. (OTC:AXPW) stock is climbing down from the 52-week high at $1.27 at almost the same pace at which it climbed up to that peak. Yesterday session closed at $0.825, or 1.20% down from the previous close, whereas the trading volume almost reached 600,000 shares. Yet, the market stays optimistic.
The latest press release of the company concerned the filing of its latest annual report for the fiscal year ended December 31, 2010. About the time of the filing of the 10-K, the share price of AXPW started falling down from the top. Further accompanying the decline yesterday were the latest post-effective amendments of the company’s prospectus.
The prospectus relates to the sale by certain selling stockholders of up to 47.75 million shares of the company that were previous issued to that stockholders. The registration statement had been declared effective already in April last year. Also filed yesterday was a notice of proposed sale of securities which states that a 10% owner of the company is offering for sale 2 million of his AXPW shares.
Axion Power International is a development-stage company working on an energy storage device that uses activated carbon electrode assemblies to replace the lead-based negative electrodes found in conventional lead-acid batteries. AXPW claims in its SEC filing to have developed a low-cost device that has versatility of design and maximum power, or a range of balances between the two.
However, on a quarterly basis AXPW revenues do not seem to grow fast enough and due to much high costs the company reported a $2.8 million net loss for the previous quarter. Though, the market looks optimistic as the stock has currently a P/S ratio of over 33 and is priced almost 4 times more than the book value. The company also has a strong cash position of $13.3 million as of end-December 2010, which is more like an exception for OTC companies.
