On March 9, 2015 a paid pump was designed for the stock of Axiom Corp (OTCMKTS:AXMM). The paid promotion included the design of a landing page and other email sent by Investor Edge. Largely attributed to the artificial hype resulted from the promotion, AXMM ticker was able to surge upwards from close to $1 per share to almost $1.84 on March 20.
The pumped stock has own set of stories. The paid promotions are targeted to attract shareholders to a company’s stock which results in a temporary surge in prices. However, the impact is short-lived. It was the same case with Axiom Corp pumper which made some highly-positive statements. It is important to remember that the task of promotional outfits is to promote the company’s stocks. In case of Axiom, Investor Edge expected to get some serious amount between $170,000 and $200,000 for four months of public awareness.
The discounted shares
There was second major problem in case of Axiom Corp and it was the problem of millions of discounted shares that could be set free in the market. A few years ago, the company sold more than 26 million shares that were priced at just $0.0015. Largely due to the increased interest and the higher share price, many of the shareholders had the opportunity to make millions in gains. Most of the times when huge quantities of discounted shares make their way to the market, the share price gets devastated. It is what has happened with Axiom this week.
Last Monday AXMM posted the record volume of 7.4 million shares and declined by over 45%. On Wednesday’s trading session, Axiom Corp (OTCMKTS:AXMM) declined another 38% while in last trading session the ticker declined almost 12% to close at $0.330. It could even decline lower as even after the huge losses in valuation, the company still has a market cap of over $20 million.