Axios Mobile Assets Corp V.AXA

RE:RE:RE:RE:Can anyone explain

[VPofFNE]

The Axios situation is easily explainable. 

1) It has a good pallet for certain situations. Eggs are one of them. It splinters when it freezes, so it is limited in its uses, but can still be meaningful. 
2) Axios needs to GET OUT of the transportation business. No other pallet pooling company, not even CHEP is in transportation. The Q3 financials highlight exactly why.
3) The lost/damaged pallet provision is not an ongoing amount on the expense side running at that 50% clip, however it will likely be there representing ~5%+/-. 
4) Axios needs to raise a lot...and I mean A LOT more money. I would suggest they need $35 - $50 million more to become EBITDA positive, and $250 million to $500 million to become relevant in the pallet pooling industry. 
5) They need to get their manufacturing costs under control. This is a $90 pallet that costs $125 to make. 
6) Their technology is cool, but they need to start having it drive way more revenue, or abandon it. Let someone else further the technology and have the R&D costs absorbed elsewhere. AXA can license the technology for pallets, but this is not an industry that will be revolutionized by technology. 
7) They need to find a smaller world to play in. Wal-Mart USA is way too big. Axios is being marginalized, and is just not relevant in their Supply Chain. 
8) If they're going to do business in the USA, then be in the USA. If you're going to be a Canadian company, come back and play in Canada - at least they would be more relevant. 
9) I'm not sure that management has the necessary pallet pooling experience to lead this company to where it needs to go. I'm sure they're learning as they go, but in the meantime, the company is paying the price. 
10) They need an anchor 'believer'. One fund who will be the lead investor with $20 - $25 million. Current shareholders have basically lost their investment. For the sake of the company, press the reset button one more time, and bring in that one investor (if they can find them) and give them whatever they want. 

There you have it. It's easy. 

VeeP