AXPW Investment Discussion

[CyberDutchie]

No more entertainment from JP lately, but it seems like his buddy Tom Konrad is taking over talking up the stock with two recent articles on Forbes:

It's A Landslide: Axion Power

And from this morning:

Axion Power's Potential For Explosive Growth

Maybe it's time to buy? Or sell... :biggrin:

 

[Grendal]

No more entertainment from JP lately, but it seems like his buddy Tom Konrad is taking over talking up the stock with two recent articles on Forbes:

It's A Landslide: Axion Power

And from this morning:

Axion Power's Potential For Explosive Growth

Maybe it's time to buy? Or sell... :biggrin:

It's up a penny and a half on this big push! This seems to be a major selling opportunity being up 7% on the day.

 

[smorgasbord]

Just saw Axion's press release about the annual stockholders meeting

They want to:

Amend the Company's Certificate of Incorporation to increase the number of authorized shares of Common Stock from 200 million to 350 million;

That's a mighty big dilution. How could that not drop the stock from twelve cents to about seven? I admit I haven't been following this closely, so perhaps this dilution is already baked in?

 

[smorgasbord]

Maybe no-one's paying attention, but a couple months have passed and - you guessed it!

AXPW just made another all time low. A dime a share.

 

[rolosrevenge]

Ooo, that mean Nicu will have invested a lot more.

 

[JRP3]

The lower the price goes the greater the upside potential :biggrin:

 

[rolosrevenge]

I plan on making a sizable share purchase of AXPW once the price goes negative, when JP is paying people to take the shares away from him :tongue:.

 

[JRP3]

Cross posting from the Petersen Nonsense thread since he's actually writing about AXPW and not TSLA, even though he squeezes in a mention.

http://seekingalpha.com/article/1745832-axion-power-an-extraordinary-nano-cap-opportunity

 

[Zythryn]

That is what you think. You should watch AXPW in one or two years. If you remember me, multiply that price by 170,000 or 200,000

It's exactly because many are afraid of that raise that I managed to buy near the all time low in an illiquid and volatile stock.

I'm not sure if Nicu is still around at all.

However, I really do like looking at positions, and speculation from year(s) ago and this one fits with the latest update I saw.

So at the time of this posting AXPW was somewhere around 25 to 35 cents/share. Currently we have a 9 cent/share price.

The interesting tidbit I found was that in June Axion Power authorized a reverse stock split that could take place anytime before the end of 2014.
I figured they finally figured a way to raise the stock price:tongue:

Looking at the details though, they expect to "reverse split" at a ration of 24 for 1, and "no more that 50 for 1".
They also state the outstanding shares will go from 350 million to 100 million.

Now, unless I misunderstand how reverse stock splits work, it should result in the outstanding shares going from 350 million to somewhere between about 15 million and 7 million.
So, they are both making a reverse stock split and also issuing more stock?

I didn't think these guys could get any stranger...

 

[NigelM]

Did AXPW go ahead with the stock issue last year? I didn't follow that.

Seems to be scrabbling if they're aiming for a reverse split less than a year after a rights issue.

 

[Zythryn]

Did AXPW go ahead with the stock issue last year? I didn't follow that.

Seems to be scrabbling if they're aiming for a reverse split less than a year after a rights issue.

They did, the added dilution brought the price down to about 10 cents.
After it all rolled out the stock 'recovered' to about 20 cents.

Since they announced the reverse split, the stock has dropped back to 9 cents. Not sure if that was a response to that announcement or just erosion.

The numbers just seem odd. Even my wife (who really doesn't like math at all) says that seems "hinky".

 

[NigelM]

Since they announced the reverse split, the stock has dropped back to 9 cents. Not sure if that was a response to that announcement or just erosion.

Reverse splits tend to be used when management feels the company is undervalued and the share price is too low to attract investors. However, my experience is that investors don't like management messing with issues/splits/reverses too often as it smacks of attention in the boardroom being diverted from ongoing business.

- - - Updated - - -

Ok, I've read up a little and the picture is clearer (although I have zero motivation to dig deeper):

AXPW has a limited number of shares available for raising capital (and the current price is low!); so a reverse split might make sense to reduce the number of shares in investor hands, push up the share price, then make those shares available for further issues to raise capital.

IOW, it's a tactic to enable further raising of needed capital. This way of doing things, and the current price, suggests to me that the market doesn't have much appetite for AXPW.

There's probably much more in the detail (good and bad) but it is an understandable tactic.

 

[smorgasbord]

Here's a link to a May 2014 letter to shareholders on the reverse split: http://www.reuters.com/article/2014/05/02/axion-power-letter-idUSnPn1CGx78+98+PRN20140502

They want to get out of the OTCQB onto a major exchange in order to attract institutional investors.

As for Nicu, he's still active on SA. He recently "went deep on margin" to buy more AXPW in early Aug.

 

[MikeC]

As much as JP and co. trashed TSLA, I still kinda feel bad for these guys at this point. I guess there always has to be someone on the wrong side of history.

 

[Zythryn]

Here's a link to a May 2014 letter to shareholders on the reverse split: http://www.reuters.com/article/2014/05/02/axion-power-letter-idUSnPn1CGx78+98+PRN20140502

They want to get out of the OTCQB onto a major exchange in order to attract institutional investors.
...

Found that. Looks like they are looking at Nasdaq's $3/share minimum price target.
They also list out how the reverse split will work. The method looks odd though. If a stockholder has few shares, the actually don't loose any shares
This does seem a rather desperate measure.

 

[Johan]

Found that. Looks like they are looking at Nasdaq's $3/share minimum price target.
They also list out how the reverse split will work. The method looks odd though. If a stockholder has few shares, the actually don't loose any shares
This does seem a rather desperate measure.

Heh maybe I should buy 6 shares or something. Wait that's 56 cents. Too much to waste on this company.

 

[qwk]

This reverse split would be an awesome shorting opportunity, but the share float will be too small. Either way, AXPW is on it's way to BK land, as reverse splits are never good news.

 

[Zythryn]

Found that. Looks like they are looking at Nasdaq's $3/share minimum price target.
They also list out how the reverse split will work. The method looks odd though. If a stockholder has few shares, the actually don't loose any shares
This does seem a rather desperate measure.

This really doesn't add up.
According to what I found at What are the listing requirements for the Nasdaq? , one requirement is a market cap of 550 Million. AXPW is no where near this.
This looks odder and odder.

As for short term, it looks like you could buy 99 shares at 9 cents. Then wait for the reverse split and sell your 99 shares for the new price of a couple dollars or so.
I don't think I read their plan correctly.

 

[NigelM]

Typically in a reverse split small shareholders either buy up to retain the minimum number divisible by the split, or more commonly they are cashed out.

 

[Zythryn]

Typically in a reverse split small shareholders either buy up to retain the minimum number divisible by the split, or more commonly they are cashed out.

Thank you Nigel, that makes much more sense:smile: