Axion International Hldgs Inc. (fka AXIHQ)

[tprosuper]

Am I the only one that thinks the past couple press releases announcing significant product purchases should be having a positive pps impact? IMO this little company has some really great potential.

[PieceofPie]

Many thanks for your helpful information. I will settle down a little and digest the whole picture.
Really do like this little company.
GLTU

POP

[Hoodviewtj]

Pie, I'm not sure I agree that we are being "set up" here, that set up was done a long time ago with convertible financing, which like a great many small companies, was the only option available to them at the time. They currently have $15.8M in convertible debt, and in 2013 they had to take charges of $15M on their P&L for the increase in fair value of outstanding warrants and convertible stock. Now that they are actually growing into a viable company, and if they want to go mainstream, they must get rid of all that toxic financing overhang.

From the 10K: "We have outstanding options, warrants, convertible debt and convertible preferred stock that, when exercised or converted, could result in the issuance of up to approximately 99.9 million additional shares of common stock."

From the offer: "Q8. Why are you conducting this Offer?
Our capital structure restricts our ability to raise capital and eventually position the Company for listing on a stock exchange. Therefore the Company has determined that it must improve its capital structure, especially to enable it to raise additional equity capital. The first step in this process is to reduce our outstanding Warrants. That is why the Company has initiated this Offer. We also plan to ask our stockholders to approve a reverse split of our shares. Finally, we have and will be undertaking efforts to encourage our preferred stockholders to agree to a conversion of their securities incidental to a listing on a stock exchange. Our convertible noteholders are obligated to convert upon such a listing. There are additional benefits resulting from reducing the Warrants. Our public float will be increased which may enhance the trading liquidity of our shares. We also eliminate the derivative liability and non-cash effect on results of operations resulting from the anti-dilution price protection included in some of our outstanding Warrants. As for Warrant Holders, the exchange of Warrants for tradable shares provides a current economic benefit to them."

Let's face it, we all knew about this overhang, now at least we know they are trying to deal with it. I hate reverse splits, but it will likely happen because we could never get the price consistently over $1 with all this dilution overhang.

[PieceofPie]

We are getting set up big-time. Just asking what is going on gets my post deleted?
Read. Read. Read.
PoP

[PieceofPie]

W T F are they setting us up for here?
One hell of alot of legal double-speak. If this proposal is done, then my layman estimation of the next step will be a large R/S to start with.
Love the company and all that it is doing for the green world, but not too sure I am happy about the financial profit for us.
Somebody, please enlighten me how this will be good for the long-haul of the shareholder.

[DebitsAndCredits]

U.S. railways in need of maintenance

With all of the oil moving through the country by rail, I hope that AXIH will get some contracts in the US to help maintain our rail system.

Looking forward to 10-Q on May 15.


GLTA,

D&C

[DebitsAndCredits]

2014 : keep eye on gross margins (top level margins)

I have only looked at a couple of items on their 10-K and the management discussion and analysis section.

(1) They are working hard to expand their pipeline of products and scale their production facilities in order to get the benefit of "economies of scale."

Economies of scale
= read as: we have high fixed costs and we need to make
lots of plastic parts in order to spread these costs as
thinly as possible

(2) You can see this in their gross margins. Their gross margin for the year on their rail ties, mats, and STRUXTURE products is only 8%.

Some quarters the gross margins have been much better ~12%

Why is this a year to watch? Well, I would argue that every year is a year to watch if you have your money with a company. But not to be rhetorical, what AXION can do this year will show up in their gross margins. My eyes will be on this number.

I think that they have a huge market for their products. If they expand by purchasing another manufacturing facility, I will take my eyes off the gross margin for a year or two. There is a dynamic trade-off between gross margin and expanding capacity. Manufacturing firms' business models are setup to lose money until economies of scale start producing returns.

Again, I haven't read the 10-K in detail. Did anyone get any information about their new markets or products in their pipeline?

GLTA,

-D&C

[DebitsAndCredits]

10-K is out on the SEC website!

[Zaadx]

This company has some really good products. My only main concern are the recent events in Ukraine and Russia. Russia is a buyer of our products, so hopefully the bs happening between them and Washington doesn't hurt our business relationships.

[DebitsAndCredits]

Looking forward to reading the 10-k when it comes out.

The three questions I am going to ask myself are:
"Is there a large market for their products?"
"Do customers consider AXION's products direct substitutes for existing products?"
"Why is AXION making plastic versions of already existing products?"

This might be more of a philosophical exercise, but it is something that I really need to think about.

I'm impressed with what they have done so far. Wouldn't you want to know how far it could go?


-D&C

[fung_derf]

Well there ya go again, rather than spending your time researching my posts, you write a long diatribe telling me how wrong I will be in TWO YEARS???? Are you kidding me! You want to buy a penny stock and hold it for 2 years?? On purpose??? No dividends. No earnings. No revenue. Just dead money.
As to you going to all my boards to admit my magnificence, no reason. All the people who post on the boards I post on, already know it. Why not just ask them?
I also love how you penny knuckleheads speak of multiple aliases. I do note yours is new. So what number alias is this for you? I've had once for 14 years, and only one. You don't need to hide when you're honest and accurate.
So how come your bet doesn't include you permanently leaving? I guess you could start your next alias.
And by the way, there are NO Axion investors. Just you and me. Why not save yourself two years and apologize now?
The one thing you've said I agree with is that there's no point in continuing this conversation. However, I can tell that you're the type who must get the last word, so I'm betting you won't stop now. Lets see if I'm right once again.

[Hoodviewtj]

Wow, I must be truly blessed, that I have met the only person on earth who "truly does know-it-all" - such humility!!!!!

There's no point to continuing this because there's no way to reason or even debate someone who professes to know-it-all, because by definition they will always be right in their own mind.

If you honestly believe Axion is a scam, I challenge you to mark your calendar two years from April 1, when the 2015 Annual Report has been filed, and check back on this board with me to see who was right. If I'm right, this company will be over $20M in sales and profitable, and the stock price will be over 2.25 - that would be a 300% return in two years. If you're right, and the company is a scam, it certainly won't last two years and the stock price will collapse to below .10, maybe even below .01.

Invest $10K now to get 13,333 shares - 2 years @ 2.25 = $30,000
Invest $10K now, get 28% compounded - 2 years = $16, 384
Invest $10K now to get 13,333 shares - 2 years SCAM @ .10 = 1,333

PLEASE, take my challenge. If you're right, I'll go to every board you regularly post on and tell them all YOU ARE MAGNIFICENT, and if I'm right, you will permanently delete you ID and never post again on any board under any ID. If neither of us is right, and the 28% proves to be the best bet, I'll apologize publicly to you on this board for all Axion investors to see. How about it, Mr. KNOWITALL?

[fung_derf]

BWHHAHAHAHAHAHA!!! Geez! I recognize you now! You're the guy new to penny stock investing who buys into everything you are told by pumpers!

First off, paid bashers is a silly rumor, never proven by anyone, but started by pump and dumpers so you don't get enough common sense to listen to anyone but them.
Secondly, I don't buy penny stocks at all. I took over this board because I followed a pump and dumper here and chased him off. He gave up because he couldn't muster enough attention thank to me. You're welcome.
Thirdly, I've been here since 2001 so if I'm 22, I was smarter than you at a very early age.
AND, if you claim 28% is unsustainable, how in the world are you trying to brag that winning on a penny stock or two makes that sustainable?? Which do you think is a more realistic expectation?

I'm Mr. Knowitall because I've been around long enough to recognize scam plays and expose them, and I've never been wrong on one. The beauty here is the history. Go look at the penny boards I've posted on. Now go look at the share price of those penny stocks and see if I was right. I'm Mr. Knowitall, because I truly do know it all.
I don't care if this stock spikes or not, it's a garbage company, and IF you actually do make money out of it, it's because you're stealing it from the poster posting after you, so lets not pretend you're here to help them. You want their money.
On the other hand, the only thing I seek is a thank you for teaching me. Again, you are welcome.

[Hoodviewtj]

There are actually 3 types of penny players: 3) those who get paid to bash the stock and play the downside.

I've noticed that you've been on this board for over a year now and all you posts relate to bashing/questioning the validity of the company, and you state that you would never buy this stock. One has to ask WHY would you be on this board for a year if you wouldn't buy the stock? And, what makes you far more qualified? Is it because you work for a promoter, or just that your ego is that big, which would make you about 22 or so and fresh out of college - mister know-it-all?

Rule of 72 says a 28% return should double roughly every 3 years, so $10K, with no further additions, would be $1M in 20 years and 10M in 30 years - NOT IN REALITY. Nothing grows 28% every year, and if it did, everyone would be doing it instead of working or investing in anything else, and you wouldn't have a job.

[fung_derf]

No, you are wrong. I am far more qualified.
So, what you're telling me is, everyone should be buying penny stocks because it's the easy way to freedom? Sure, that's why the SEC is always putting out warnings about not buying them and so many of the CEO's are going to prison.
There are two types of penny stock investors.

1)those who are working a pump and dump so they can unload shares onto some other poor shlub who doesn't know any better.
2)the poor shlub who listens to people like you and thinks it's possible to get rich off of penny stocks.

Can't tell you over the years how many day traders I've seen go broke after bragging about how great they were at investing.
And anyone scoffing at 28% per year doesn't understand investing at all. Go research the rule of 72 and see what 28% does for you.

[Hoodviewtj]

I don't know who you are "fung derf" but you couldn't be more wrong. For those of us who worked for wages our entire lives, putting whatever you can afford to into a mutual fund and leaving it there is actually the WORST thing you can do. 28% last year was far less than 1/2 of what I made trading micro cap and pink sheet stocks, and so far this year, I'm up over 35%. No reasonably safe mutual fund can do that without taking the same kind of risks that we take in micro caps, unless they're into gold or some other speculative investment, in which they have great years and lots of very bad years. Even the best mutual funds are fortunate if they can average 10-15% over a 20-30 year period. How did your mutual fund do during 1973-1975, 1987-1989, 2000-2002 and 2008?

I'm just a dumb old country boy with a HS education who worked for "the man" all my life, yet I retired at 55 with no pension and live quite well solely by trading stocks. You very seldom make BIG money with safe investing, risk=reward, but by doing very good DD, spreading your risks between 20-25 stocks, letting those winners RUN and not taking profits too soon, and by getting out of losers before they hurt you - most anyone can make great money in the market.

I simply use the logic that I'm not nearly as smart as the combined knowledge of all those Wall Street wizards, so I simply play in the arena most of them avoid - micro caps and penny land. All I need is ONE big winner each year to live comfortably and increase my net worth, which is now 40% more than when I retired 13 years ago.

Why on earth would you post such negative comments about someone's investing abilities, when the main benefit of MBs like this is to share ideas, DD, and opinions. I want everyone to be a successful investor, but you seem to think you are more qualified than someone else, and I highly doubt that you are.

[fung_derf]

This company has promise and for we little folk it is fun to play with it with a small chunk of "vacation" money.

This is why you "little folks" retire broke. Investment money is not for gambling, and certainly not if you hope to retire one day.
Much better off putting that money into a solid mutual fund where you could have made 28% or better last year.
Meanwhile, a year ago today this stock was at .72. Today, .72. You have just wasted a year of your investment life. Congrats.

[PieceofPie]

Thank goodness that you are not a pro advisor. I differ with you big time. This company has promise and for we little folk it is fun to play with it with a small chunk of "vacation" money.
The product is real and to people who believe in the earth-saving products it is a feel-good stock too.
I, personally, have fairly high hopes for success.
Hope you are wrong. You have every right to your opinion.
GLTY

[fung_derf]

Doesn't matter how "little" you are investing, you're throwing money away. Here's an idea, take that money and go on a little vacation somewhere and sit at an outdoor cafe and enjoy the scenery. The money will be much better spent.

[tprosuper]

Actually I already did that, am retired, and am using the investment thing as a hobby. I don't really put a lot of money into these things.

[fung_derf]

I think I look at your picture and am totally confused because you invest like an 18 year old kid. Aren't you saving for retirement?

[tprosuper]

Yeah I got out of this a while back when it did that small run. I never took it off my watchlist though and see that they acquired a plastic recycle plant in Ohio to the business. The intriguing part is it ties in with their mfg business for raw materials and their purchase was through bank financing rather than dilution. What do you think?

[fung_derf]

There is no convincing you to buy good companies, is there?

[tprosuper]

Rare, what's your take on this thing now that the conference call burst is over? Looking at the financials, it seems as if they have a pretty fair amount of orders. I like their report of Waco working extended hours to fill orders. Do you think this little company has a chance of actually creating meaningful revenue? Just wondering.

[jfk]

Starting to look at this. President/CEO appears to be pretty sharp. Good business plan. They're biting off an awful lot for a tiny company. We'll see if they can make it work out. Big risk, Big reward. Too many unknowns, not enough history, to make me comfortable just yet. They need to get some coverage/report done so investors get a better understanding of the pieces and how this will come together. Not there yet...That's ok, as the President needs to keep his eye on the ball: capacity expansion, business development, and expense control.....

[dazetrader]

LEVEL-2-UPDATE...

[PieceofPie]

I have been following this little company for a while and getting the feeling that I was right in the beginning. Plastic bottles and such may eventually be banned, but for now they are a big problem.
This company is filling a need and the expansion they have demonstrated, in such a short time, is impressive. I liked the buying opportunities under .50 but they appear to be gone and not returning.
I will be hanging on to what I've got and believing this little train can pull the load.

GLTA PoP

[TheFinalCD]

AXIH .96 receives $925k order

[fung_derf]

Hmmmm, you may have jumped the gun.
I would never had gotten in, but if someone had asked me who had, I would have said, wait until it breaks the previous weeks low.
JMO, of course.

[crlee3]

Well Fung, I got out with a small loss. Good call. I am not worthy.

[fung_derf]

I took this off my watch list a while back because I thought I chased off the pumpers. To be honest, I'd have to re-find my info and I really don't have the time now. Watching other pumps and dumps....and my own stocks as well.
This is the time of year for profit taking and tax loss selling.

[degao]

Visit pumpanddump.com. You will see axih and who are the pumps

[crlee3]

Fung_derf how is this a pump and dump? New assets, 42mil contact and plenty of other good news. The stock chart is trending upwards and its breaking 52 week high. I would like to hear your thoughts. Maybe some solid facts.

P.s. not trying to be a jerk. I'd really like to know. Thanks

[fung_derf]

But what do I know? I was trying to hold down this pump and dump for months. Forgot to monitor it.

[Diaz83]

Point taken

[fung_derf]

Depends. Do you like buying in at the tops of pumps and dumps?

[Diaz83]

Is this still a good buy at this level.

[crzzyduke]

Blue Sky Breakout. Solid volume and Golden Cross and with more news coming out this definetly looks like a very nice buy

[PieceofPie]

Cant think of a better end to your postings here. Congrats longs. Lookin' better and better.

[rarefind]

AXIH so far so good guys who picked it up with me today under a buck today. Going into this conference call this stock could see the 1.50s and a bullish outlook which whats the point of the call if they don't have good news then 1.75s/2.00 possible targets....rareF

[DebitsAndCredits]

Plastic cost input/output side

Plastic is a cheap input and also a low value output. AXION's solutions add value by creating new applications for plastic materials that outlast products made with more traditional materials like wood.

I am interested to see what they do with this recycling facility. They have come up with new ideas recently (construction mats) and hopefully the purchase of this recycling facility will allow them to come up with new blends of resins for applications that aren't currently in their product pipeline.

My bet on this company is that they continue to come up with new applications that can replace products that would otherwise wear-out faster. Their biggest selling point is that their products last several times longer than products made from wood.

-D&C

[tprosuper]

Not anymore, sold it today and for once didn't take a bloodbath.LOL

[PieceofPie]

Oh yeah. I would call a $42 mil contract a pump. Haaaaaaaaaaaa Haaaaaaaaaaaaaa!!!!!!!!!!!!!!!!!

[fung_derf]

Don't tell me you own this one too?

[tprosuper]

Wow, quite an increase today after the pr news. Does this mean someone really believes this company is doing business?

[fung_derf]

So the pump is back on?

[kyle_anderson]

AXIH promotion starting today.

O/S: 30,315,663 (a/o August 9, 2013)

Good luck

[DebitsAndCredits]

Company continues to make good on promises

Still liking AXION. They did not reach $3.2 million for Q3, only $1.27 million in sales this quarter. I don't think they will reach $10 million for the year, maybe more like $6.5 million.

They still continue to improve their growth metrics:

(1) Top line revenue is increasing, supported by a stronger product mix and customer base.

(2) Gross margins are improving.

(3) Product catalog is increasing. The 10-Q mentions some product for use in tunnels. I didn't notice much detail on this, but it shows that this company isn't just selling railroad ties. It also proves that their plastic really is useful in several applications. For instance, construction mats seem to be
delivering (1) or (2) success stories based on their 10-Q.

(4) Management is motivated and reaching for new markets, Russia
for example.

Good luck to all you beautiful people.

-D&C

[tprosuper]

What makes you say that they aren't doing business?

[DebitsAndCredits]

Convertible notes, warrants, and secured notes

Today, AXION filed reports with the SEC that it received $1,200,000.00 in cash.

It is contemplated that the secured note will be exchanged for more convertible notes and warrants on or before November 29, 2013. The date is the last Friday of November and it is the week following the 3rd quarter 10-Q.

Interesting to see that this report shows who the largest holders of AXION are:
(1) ALLEN KRONSTADT
(2) MLTM Lending LLC
(3) SAMUEL G ROSE

My pet theory is that these investors in AXION are simply taking advantage of an agreement that they created on August 27, 2012. There is an 8-K on August 27, 2012 that explains the initiation of the arrangement that the investors are modifying and purchasing convertible notes under as of October 21, 2013. This allows the investors to receive convertible notes and warrants at 0.40 and 0.60 per share each

----------------------------------------------

Excerpts from the filings

WHEREAS, (i) on the date hereof, the Secured Party has loaned Debtor an aggregate of approximately $603,000 (other than the loans made on the date hereof in consideration for Convertible Notes), and in consideration of such loans, Debtor proposes to issue to each such Secured Party a secured promissory note, and (ii) it is contemplated that following the date hereof, the Secured Party shall loan Debtor an aggregate of up to an additional $3,000,000, and in consideration of such loans, Debtor proposes to issue to each such Secured Party a secured promissory note (the secured promissory notes referred to in (i) and (ii) are hereinafter collectively referred to as the “Secured Notes”), and each such Secured Note shall be exchanged on a future date for a Convertible Note and warrants to purchase shares of Debtor’s common stock;

On October 21, 2013, MLTM loaned the Issuer $201,002.40 and, in consideration of such loan, the Issuer issued MLTM one of its secured promissory notes. Under the terms of such secured promissory note, it is contemplated that such secured promissory note will be exchanged no later than November 29, 2013 for a Note in the principal amount equal to the principal amount of such secured promissory note plus all accrued and unpaid interest under such secured promissory note. In connection with the issuance of such Note, pursuant to the secured promissory note, the Issuer shall issue MLTM an associated warrant to purchase the number of shares of Common Stock into which such Note is initially convertible on the date of issuance. To secure the obligations under the secured promissory note issued to MLTM and the related secured promissory notes issued (and to be issued) by the Issuer, the Issuer, Axion International, Inc., a Delaware corporation and wholly-owned subsidiary of the Issuer (“Axion International”), and the Investors entered into the First Amendment to Security Agreement dated October 21, 2013.

------------------------------------------------------------

I would like to see $ 3,700,000.00 in revenue for the quarter and a re-iteration to reach $ 10 million in revenue for the full year 2013.

Only time will tell.

-D&C