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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
What makes you say that they aren't doing business?
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
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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.
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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
uhhh, because it's not really doing business.
How on earth can a company that is supposedly really doing business be so stagnant? ANYBODY!!!!
Increasing capacity at Texas plant
"
Moreover, the company is doubling the capacity of its Waco, Texas, facility to meet growing demand from Class Is and transit customers that serve the southern and western United States.
"
Article
There's thinly traded ...and there's not being traded. 0 volume for the morning. I believe 0 volume all day Friday, September 13 as well.
Not much activity on the stock. Some news came out about a contract they are working on in Russia.
I am long AXIH and continue to see what develops.
-D&C
Looks to me like the share price is headed down.
Q2 2013 - Quick summary
Quote from press release:
"In the second quarter we've continued to grow our sales pipeline and we are on track with our strategic plans for 2013 on all fronts. We are exactly where we expected to be after the first six months of the year. We reiterate our statement from last quarter that achieving higher sales volumes, coupled with being a vertically integrated manufacturer, puts us on a path towards positive earnings. We expect to see increased sales volume in the second half of 2013, as planned. Major sales initiatives in our pipeline are on schedule and our current backlog and sales opportunities give us a high degree of confidence that we can expect to double AXION's sales in calendar 2013 over 2012 revenues of $5.3 million," stated AXION President and CEO Steve Silverman.
"As we move forward, it is important we control our own manufacturing facilities from a quality and cost perspective. In the second quarter we took complete control of our own manufacturing facility in Waco, and purchased the second extrusion line that is on schedule to go live September 1. This will allow us to run more pounds of plastic through a fixed overhead, thus lowering our costs. Lastly, we now have a foundation to vertically integrate our raw material supply. We are carefully evaluating various other backward integration strategies that can further improve our margins and provide us more consistent pricing and supply of raw materials."
"We continue to show that ECOTRAX(R) is the highest quality product on the market. We have tightened our quality standards and metrics again this past quarter. It is a primary focus to show the marketplace that our Company produces a consistent quality composite product. Extended use and testing by our customers and third party labs prove the consistency and quality of our products."
-D&C
AXION International Holdings to Present at FSX Investment Conference in Fort Lauderdale on July 26th, 2013
Just an FYI on basic AXIH news.
I signed up for event updates at the site, but I didn't find anywhere to view a webcast of the presentations.
-D&C
Yes, I am. Plan to be in for a while.
-D&C
Still in this garbage?
Mining industry trade show - coal mining/long-wall mining
Wall Street Journal url
"This is a trial order which we believe will lead to more purchases from the coal mining industry. The wet and acidic conditions in mines lead to deterioration of traditional wood, concrete and steel materials, whereas STRUXURE(R) is impervious to those elements," stated Dave Crane, AXION's Executive Vice President of Building Products.
-D&C
Fung,
When you post on a message board, who are you posting to? I don't think there is a way to know for sure.
I'm just using this as a medium for me to share my thoughts about a company I am following.
-D&C
Who are you talking to? I'm the only one here and I think the company is a scam.
Conference call highlights
* 2013 backlog $5 million
* 2014-2015 opportunities/leads $50 million
* Continued interest in several countries for ECOTRAX
* $ 500 million total North American market for construction mats
- AXION expects to be able to gain market share of this
* Goal is to integrate their supply chain
- Translation: they want to operate their own facilities &
produce their own plastic flakes. Currently, they do a mix of
sub-contracting, leasing, renting of equipment
* Q&A on margins (currently at 13.48% based on current mix)
- Ties
- Structure
- Mats
... they are shooting for a 150,000 lbs plastic / day to be able
to achieve above gross margins above 20%
* Interesting question about STRUXTURE line and the one-time
charge for fair value of derivatives.
- the fair value for derivatives will always be a non-cash
charge
- STRUXTURE: a project bidding process and long lead time
process. They say that they are working on a number of
projects, but not the key focus of their production and sales
strategy. This market will be slower to develop.
...very competitive on pilings, girders, I-Beams, e.g. the
sub-structure. Their product struggles with "topical"
profile items. He gave the example of top, visible
boardwalk boards.
___ I think what he is getting at is that they make big,
thick, strong items, but they have not engineered
thinner, more aesthetically designed products.
* Last thing that I noticed from the conference call ... at least up to the 30 minute mark when I posted this post ... is that there was only 1 investment company or institutional investor who called in for the Q&A. I think it was the 1st caller.
___ I don't think that the big money is looking at this
company at this time. I hope they do this year.
-D&C
10-Q HIGHLIGHTS
I'll beat you to it and say that there are highlights and lowlights in the report.
* Sales are down Q1 2012 to Q1 2013
* Still need to develop market for their product
* Working on developing manufacturing capacity (Texas and Pennsylvania)
Biggest highlight:
* Gross margins have improved as they have diversified their customer base.
I'm looking forward to reviewing the transcript of today's (May 16th, Thursday) conference call.
-D&C
Construction mats distribution has begun
Interesting line in the article that AXION will take the used mats back and process them into new, ready to sell condition.
Quote:
"
AXION also offers a buy-back program for STRUXURE boards that reach the end of their useful life. Under the program AXION purchases the boards and recycles them again into new STRUXURE construction mats. In exchange for the used mats, AXION issues a credit to customers towards future STRUXURE construction mat purchases. In contrast, traditional wood mats are either left to rot or need to be transported to landfills at the end of their useful life.
"
- from Article
Hopefully, this is a profitable distribution agreement for them. Also, I hope they can get a couple of distribution agreements to expand their share of the market.
-D&C
*** P.S. To 2thMover, I agree that my revenue estimates might have been low, but I like to keep things conservative. Q1 and most of this year will have new developments, so I think this is AXION's chance to tell people what's going on in the structural plastic market. Time will tell.
Is there any way to tell if today's order for 50,000 shares was at the ASK or the BID ?
-D&C
Nice report D&C but I believe your estimates for 2013 are conservative. The French high speed rail are among those companies evaluating this product to replace concrete railroad ties that are both more expensive, and have a shorter life cycle. I believe an order or an aliance like this will cause a flash increase in sales...
Flash report for 10-K 2012
(1) Revenue up for the year. I predict they are headed for $10 million in revenue for 2013.
(2) Weak Q4 as customer asked them to wait on fulfilling order. Customer is evaluating if they want Axion's newer type of plastic composite.
(3) Sales & marketing contacted and sent product for evaluation to 22 customers around the world.
(4) Company has many new applications and products in their pipeline. They are very confident that they can be successful.
(5) Spending will increase in sales & marketing in 2013. Spending will also increase to develop manufacturing capacity.
(6) Company must raise capital soon. I believe that they will announce this in April.
My personal predictions:
(1) Revenue will be $10 million for 2013
(2) Stock price will revisit prior high of $ 0.98 sometime in 2013
(3) As always on the OTC, pay attention and be aware of what you are trading or investing in
Below are two charts using data from the 2012 10-Qs and 10-K showing top line revenue and gross margin(a.k.a. revenue - COGS):
Earnings to be released on April 1st.
Hope it's not a fool's day for us.
Currently facilities support $30 to $40 million in sales per year
-See SEC filings. They posted their investor presentation today in an 8-K
If you look at their quarterly sales of around $1 to 1.5 million per quarter, they need to do 3 things:
(1) Increase manufacturing capacity
(2) Increase sales 10x's over per quarter to use up current capacity
(3) Work to improve gross margins
It seems like they are already working on (2), so I think (1) is more of a concern than (3) at this point.
Again, still waiting for the 10-K. Thankfully, at the latest this will be the end of the week.
-D&C
I can't tell you a thing. The only thing I do know about it is they've hired a company to phone brokers to promote the stock. I would be very cautious about any investment here. My advice would be, if you buy, get out before the pros do.
I'll do some DD tomorrow and post what I find...
Fung or 2thmover,
Any info on today's trading at the end of day? It coincided with a couple of articles published about the company.
Also, is there a way to tell if the same person or organization made all of the trades at the end of the day today ... some unique identifier that is attached to a trade.
I would like to know where this stock is going.
-D&C
From the Financial times "Long view" editorial:
"
Four years ago this week, the trough was reached, as the S&P 500, the main index of the US market, briefly touched the ominous level of 666."
So maybe someone was trading AXIH today with a "hat-tip" to what happened 4 years ago, and did a trade for $ 0.666 ???
Thought it was interesting.
.666 - Devil stock
Anyway, I think we are just waiting for the annual report. I haven't heard anything recently.
It is moving up because they are strongly soliciting. All that means is when the time comes, they will be selling into any strength.
Not a stock I would want to own. Not the way I look to make money.
I would say we are having some anticipation of the 10-K, prepped by the news that a purchase order has been created.
It's good news for the company, but what does the share price say about where the company ought to be? e.g. what is the psychology of the share price?
I would say that if the stock is @ 0.64, the company should be doing at least 17 million in revenue per year. Or, on an earning basis, have $ 0.05 EPS with a P/E of 10.
I don't think that the positive earnings will be coming this year.
Because I think that the company will be a success, I expect SGA&E to continue to grow. My focus is going to be compound growth in revenue ... all of the investment in the salesforce needs to be backed up by completed orders and happy customers.
My guess is the 300 shares was a painting of the tape, or else a signal to someone to enter orders. Much of the rest of the trading looks like limit orders not filled at one time.
Considering there is a hired gun to promote the stock, it figures there is also a group hired to give this an advancing chart, or else load up before a pump and dump. JMO, of course.
Sometimes you really need 300 sh. of a stock.
What's up with all of these little orders going off at $ 0.70?
Does anyone know if this is a trading strategy or how to interpret this?
Thanks in advance,
D&C
Trading activity today
Anyone have an explanation for the trading activity today? No trades after 2pm ?!
I'm glad you're here to patrol.
-D&C
Well I know for FACT someone is promoting the company. Finding out who and how they're compensated just takes a little time and effort.
To be honest, I'm here to make sure things stay legit. Hopefully no pumpers showing up soon.
What are some ways to find out if someone is promoting a stock?
It looks like the range could be pushed down a little more, I think there is more supply around 0.58.
I'm a micro investor, and I have a position at 0.42 for around 2,000 shares and a position at 0.63 for around 4,000 shares.
I think it will be in this range for awhile.
-D&C
For some reason I recognize the symbol from years ago, don't know why or what it used to be.
But just took a new interest in it. Trying to figure out who and why they're paying a tout company to push it.
Totally legit.
But always remember this is the OTC. I had no idea it would close at 0.58 today.
Like I said before, not much news out so just waiting. Have you been following this company for awhile?
Thank you. So you think it's legit? The trading pattern seems suspect.
fung derf,
I don't know who is promoting the stock.
I am in the stock because I have a tendency to trade/invest in stocks revolving around reuse of waste items, renewable energy, etc...
I think the company will be growing and am eager to see the 10-K. But I don't think we will hear anything from the company until then.
GLTY
D&C
This one just came up on my radar. Anyone wanna claim to be getting paid to post on it?
2thmover, I agree with you.
I'll continue to post as I find out information. I'm really eager to dig into the 10-K.
We'll see what happens between then and now. Thanks for the informative post! :)
-D&C
I keep up here, I'm in big!!
good news is on the horizon, big european sales are forthcoming (next 2 quarters), then look out!!
StockRSI and MACD
MACD is still positive and the StochRSI reads below 20. I am watching for volume and Accum/Dist line on Monday to see if buys come back into the market.
The last time AXIH was in the 0.47 to 0.57 level on Jan 23, we had big volume, which carried us into this nice raise up to 0.75 and back down to 0.57.
If there is little buying, I will watch the MACD to see if we go negative, which I don't think will happen ... but this is the stock, not the company.
I think that the company will post some good numbers in March and if we haven't already gone up, we will go up again in March ... really only 6 weeks (or so) away from their filing ... not too much to wait.
Again, if anyone wants to put in some guesses for 2012 annual and Q4 revenues, I will keep a list and post the winner.
So far, just me and the crickets here on this SMB.
DebitsAndCredits
AXION's letter to shareholders
CEO update
Company is expanding with a good product pipeline and top line sales growth looks to be picking up. It will be important to compare their growth for the next few quaters to see if there is a market for their product and to see if they are able to execute as they expect to.
Good news!
Link to 8-k at SEC
Good news out from AXIH. This should be a good time for traders and new investors. I think there will probably be a sell in May and go away for this stock ... as with many penny stocks.
Anyway, I love plastics and energy generation companies. Congratulations to the executives, staff, and manufacturers at AXION !
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• Eco-friendly, Superior Structural Products • Exclusive Licensee of Patented Technology • Operates in Expanding Global Infrastructure Market • Multiple Applications in Multiple End-use Markets • Prominent, Growing Customer Base • Focused on Increasing Capacity • Strong, Experienced Management Team • TICKER SYMBOL (OTCBB): AXIH • RECENT SHARE PRICE: $0.625** • 52-WEEK RANGE: $2.00*- $0.625** • COMMON SHARES O/S: 25.20M • MARKET CAP (Basic): $17.64M • INSIDER OWNERSHIP: 5.9% • STATE OF INCORPORATION: Colorado • REVERSE MERGER: March 2008 AXION International, Inc. TRANSFER AGENT: Computershare 350 Indiana Street, Suite 750 Golden, CO 80401 303.262.0600 COUNSEL: Greenberg Traurig, LLP 1750 Tyson Boulevard, Suite 1200 McLean, VA 22102 703.749.1300 AUDITOR: BDO USA, LLP 401 Broadhollow Road Melville, NY 11747 631.501.9600 Sales and General Inquiries AXION International, Inc. 180 South Street, Suite 104, New Providence, NJ 07974 Ph: 908.542.0888 Email: info@axionintl.com Investor Inquiries AXION International, Inc. 180 South Street, Suite 104, New Providence, NJ 07974 Ph: 908.542.0888 Email: investor@axionintl.com Media Inquiries AXION International, Inc. 180 South Street, Suite 104, New Providence, NJ 07974 Ph: 908.542.0888 Email: media@axionintl.com http://www.axionintl.com/ |
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