Axios Mobile Assets Corp. AXBSF

Interest..?

[Splifka]

Company has contracts, decent and growing revenue and is about to close on 18m and there is nothing doing on this forum?

[valueseeker123]

Agreed, pretty pathetic! I guess it's a sign of how little the market cares about the small caps. I've done a ton of DD on this gem and believe it will be a highly disruptive player in a multi-billion business, so the stock price will eventually follow!

[VPofFNE]

What part of Axios do you think is disruptive? They're an alternative material pallet with no real abilities to collect them if shipped into an open loop. There is not one thing that they have that's disruptive.

[Splifka]

I respectfully disagree. Their pallats last three times longer, which makes them cheaper.  They can be sterilized, which allows them to be used for food sensitive products, i.e. eggs, which just so happen to be the contracts they have.  And egg farmers don't buy pallets, they lease them, so the loop is just that, closed.  Their pallats can be tracked, which given their carbon

[VPofFNE]

Splifka, I agree that their pallets are really good, but so are 100 other alternative material pallets out there. They can all be sterilized, they can all be electronically tracked, and they all have the same issue....there exists no method which can guarantee that these expensive pallets will be 100% returned when shipped into an open loop system. Pallets are not boomerangs, they need to be

[valueseeker123]

The working model is closed loop, fully. They will have their own trucks. They already have commitments for well over 200,000 pallets. Each pallet cost about $75, and this will drop  Conservatively, they turn each one once per month at $6....Hmmm...that's enough gross revenue for the cost of the pallet that has a ten year life+ Sounds pretty good 

[VPofFNE]

Yup, they ALL - every single one of the alternative material pallet producers - have a closed loop target model. This is only a very very very small part of the pallet market, and everyone wants it. $6.00 per pallet trip is not reasonable nor is it sustainable. Try $4.25 - $4.50. After freight, handling, cleaning, storing and losses, this will provide a Gross Margin of ~50%. Then you have

[Splifka]

Cheers for that VPofFNE, Clearly you are an individual who knows with which he speaks.  You make a lot of good points, and I for one appreciate the insight. I whole heartedly agree with you in that there are a great many number of players, all with similar product offerings, although I hesitate to say if they are identical.  My DD has led me to conclude that the competition tends to

[VPofFNE]

Yes, I too have seen their financial projections...it's all over town. I do however have an advantaged viewpoint compared to most everyone else in the pallet pooling market. Axios is underestimating (in my opinion) some of their expenses when you overlay the real life of pallet pooling. They are projecting near perfect scenario, and in the world of the lowly pallet, this just doesn't exist

[Splifka]

Yes, I suspect your view of 50% gross margin is far more realistic than Axios' 70%.  You know what they say, 'if something can go wrong...'  Be that as it may... 50%. As far as Walmart, in my humble opinion they're the biggest you know what's, my point was rather the base with which to scale up is impressive. Yes, 8 years is a long time to be plugging away.  I

[VPofFNE]

I'm not entirely sure that I understand the question. They landed customers, just like everyone else in the pallet industry does. They convinced some egg producers to use their pallets...there is nothing unusual about that. iGPS, despite their unbelievably poor track record, still has customers. Many other alternative material pallet producers have customers too. Don't misunderstand me

[valueseeker123]

First off, my hat off to the two of you for the thoughtful back and for dialogue - very refreshing these days on the bullboards. Riddle me this...If Walmart tells its egg suppliers they need to use the Axios pallet, and the egg co needs to pay the $6, do you think the egg co will say F U?  of course not. OK, so to the point on Walmart ditching them for someone else, I have a couple answers

[VPofFNE]

I agree about the civilized dialogue. That doesn't happen often on these boards.  Again, don't confuse the fact that Wal-Mart 'accepts' the pallets, with Wal-Mart 'wanting' the pallets. Not only that, but there is no way that if there was $1.50/pallet on the table, Wal-Mart would want it, they wouldn't sacrifice profit for pallet type as they don't care which