Less than $5K in shares change hands . . .
Amazing that a measly $5K in shares change hands at market, and the price drops 20%. Creating a worry trend, that has nothing to do with the company's fundamentals.
But I have to ask, why is this company still public? 55M shares and a market cap of less than $4M. $300K in cash. $2.5M in revenues. $22M in accumulated losses.
This is a tiny company that still borrows money from shareholders and directors.
AXE is trading as if its on the verge of insolvency. But, with no debt, insolvency won't happen (I mean what secured creditors are there, and why would they force an insolvency?).
Another option would be a share issuance of say $3M (which would dilute the hell out of existing shareholders), but at
.07 share, that is already priced in.
What is way more likely is this company being taken private. Since it does more consulting/software/etc., which is not that capital intensive, and which should create ongoing positive cash flow, it's capital needs probably no longer require a public float. Therefore a privatisation of AXE is highly probable. Perhaps by one its Grade A clients or existing shareholders.
But, it begs another question, would a take-private initiative pay the $4M market cap? I would assume so, probably plus a small premium, as the technology and relationships would be best kept whole, rather compromised by a low-balling offer.
Some may say that won't happen, as management won't allow it to happen, but the reality is, in the absense of ongoing cash for growth, and unless management wants to keep working for free or borrowing from directors and shareholders, management won't have a choice.