MJ Stocks Analysis

[dog turd cannon]

DD: AXXU -

Here is a list of all the "companies" in the chain of Axxess.

AZIA Corp.
Ambush Media, Inc.
Secure Luggage USA, Inc.
Visual Bible International, Inc.
American Uranium, Inc.
American Uranium Florida, Inc.
American Uranium, Inc.
Zencrest Holdings Corp., Inc.
PRS SUB III, INC.

If you check you will see that many have gone through bankruptcy and awarded shares to creditors to avoid such nastiness. In case you don't know all the information is here.

http://www.otcmarkets.com/research/broker-dealer-dir

You just have to read through the Articles.

The current form of the company lobbied legislation in Arizona for an ignition lock system to be installed in cars and suceded. Some background on our countries DUI laws. The law is very real now that these devices are / can be forced in DUI cases.

http://en.wikipedia.org/wiki/Ignition_interlock_device

From the SEC filings...

"Axxess spent the last 9 years developing the Axxess Unlimited Ignition Interlock processing system. The first phase of the final version of the platform was launched in a limited release to Arizona Monitoring Systems, LLC (d/b/a Safe Harbor) in October of 2011 with better than expected results. Axxess is now ready to release this product into other areas of the country."

Here is the products website

http://www.axxuair.com/air_states.php

which doesn't even report on Alexa.com. Let me repeat, that site has had so little traffic it fails to even register.

http://www.alexa.com/siteinfo/axxuair.com

And there other site Axxess Unlimited.

http://www.alexa.com/siteinfo/axxessunlimited.com

has a lower rank than my dog's blog. More concerning to me is the lack of any "Career" section. I company that has been around for 9 years should have a HR department and hire occasionally. Ignore that comment it is just my opinion.

You can compare the traffic ratings to a company that is making money in this space.

http://www.alexa.com/siteinfo/smartstartinc.com.

Relevant to this board, AXXU are claiming that this "product" possesses IP for marijuana. Which they claim here...

http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=1203415888

But the patent,

http://patents.com/us-8059003.html

clearly states alcohol. Most patent attorneys are good at being vague but Axxess' wasn't. It is specific to alcohol. So it does not apply nor can it be applied. Now I am not a patent attorney BUT I do hold two patents so I am fairly familiar with this. Plus, they don't appear to make any devices anyways just software that integrates with other peoples devices so you can't patent a data structure.


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AXXU "reports" a good revenue increase but there is an issue in why the company fails to turn a profit? The balance sheet has retroactive salary payments for the last quarter which is strange along with quite high R&D and administrative expenses considering the number of employees... which is either 1 or 4 depending. There are more than 800 investors now... and 4 employees?

http://www.otcmarkets.com/stock/AXXU/company-info

The "1" figure comes from the SEC filings which list only Roth as an employee...

And, the number of authorized shares showing up is 125m (see above link as well) But according to the filings in 2010,2011 and 2012, this company authorized 700m (that is 2.1 billion in total). No idea where they are. And the offering is very strange. 1 preferred shared is issued each year and 699,999,999 non-preferred shares are issues.

So after 9 years, with the law in place this company has failed to have positive cash flow. That is not a good sign.

Now there is very little MM interest so far in this company so far so as of yet there is no long/short traps in the works... but that is probably because JCD Capital owns almost all of it. I am not going to touch JCD Capital. I am pretty sure there are plenty of posts on iHub related to that firm and Mr. JCD.

So, in short this company has a product - a software reporting tool - it does not make the device that goes into the cars. If there are DUI/DWI laws passed for marijuana and if those laws force and this company is positioned correctly they could profit from that. Yet, they basically are in the same place currently with alcohol and they can't make a product... hmmm. As far as I can tell no DUI law has any requirement for reporting... that is the issue and most manufactures of the device can "report" if necessary.

There doesn't appear to be any fraud or deception here. But, there really isn't anything here at all.

But, then again this company and all it's sub companies completely vanished for awhile so it will take me more time to figure out why...

Unlike other pot sector stocks that I can trace to organized crime in Africa and the Middle East this appears like an attempt at a real company. Just a retired judge that thought he could get rich buy going into software and found he couldn't so now AXXU is trying to jump on the MJ train.

Because of the current lack of MM activity I doubt there will be a serious run up of the stock. But, watch

http://www.otcbb.com/asp/tradeact_mv.asp?SearchBy=issue&Issue=axxu&SortBy=volume&Month=12-1-2013&IMAGE1.x=23&IMAGE1.y=6

over the next few months and see.



Ancillary information:


There is no mention of them or their product on any state websites (here are two):

http://www.wsp.wa.gov/traveler/interlock.htm

http://www.azdot.gov/mvd/driver-services/ignition-interlock/interlock-manufacturers-and-installers

And, coincidentally much like FITX and EDXC there is an MMA connection through this group

http://www.wsof.com