It has been a long time since Sionix Corp(OTC:SINX) last attracted so much attention. To be precise – it was 2009 when the stock price last saw levels as the current one, and 2008 when such a sharp increase took place on the market. Let alone, there has never been such an intense trading session in the history of the company. Yet, there is an important question that needs an answer before the champagne can be opened. 
Japan and Sales are the key words which prompted the trading frenzy that took place yesterday. More than 25 million shares were traded as the stock price more than tripled its value during the session yesterday and closed at $0.18. It is important to mention that the sudden stock explosion is primary a result of the press release from yesterday, but the ground for such hype to form dates back from previous weeks and months.
In March, Mr. Currier, the CEO of the company, was interviewed on Bloomberg. Then he briefly explained how the products of Sionix could be of service to the current situation in Japan. Several days after that, the company entered an agreement for representation in Asia. The agreement in question focuses on China, but mentions possible countries in East, South and Southeast Asia. The key word for the above is representation. This is one of the reasons why there was hardly any result on the stock market.
This Wednesday, however, the press release issued announces a Memorandum of Understanding with a Japanese company for the eventual purchase of thirty units of Sionix products, as well as the production of more units in Japan after that. The MOU would define the general terms and conditions under which Sionix and the Japanese company would form a joint venture. Now, since this time there is a real opportunity for revenues, actual sales and the penetration of a market that is obviously in immediate need of such products, it is not surprising why so many people went out for Sionix shares. [BANNER]
Yet, there are several other aspects that should also not go overlooked. First of all, a MOI is by no means a guarantee that actual JV would be formed and sales of products would follow. It gives reasons for hope and positivism, but that`s all. Second, as Mr.Currier explained in his interview on Bloomberg, the product of the company (MWTS) is able to remediate contaminated water, including the removal of radioactive contaminants, but the latter need additional technologies for transportation and disposal. Simply put – Sionix products are not specifically designed to remediate radioactive contaminated water.
Most important, the counter-party for the joint venture in question Trading International Investment Inc intends to finance the purchase of Sionix products by obtaining a letter of credit from a banking institution. In other words, there is still much to be done before an actual sale takes place. In terms, it is uncertain whether the pace of the stock price increase would keep for the sessions to come.
Of course, if indeed Sionix manages to sell its products in Japan this would inevitably have a far bigger and long-lasting impact on the stock market. Whether it will happen, remains to be seen.
