On March 9, 2015 a paid promotion was designed and circulated for the stock of Axiom Corp (OTCMKTS:AXMM). The promotion constituted the design of a landing page and also several other emails sent by Investor Edge. It can be attributed to the synthetic hype resulted from the paid promotion, the share price of Axiom surged upwards from $1 per share to $1.84 on March 20, 2015.
The pumped promotion comes with own set of problems. They are targeted to draw shareholders to a company’s share and the process results in temporary gains in prices. The major problem arises when the impact starts fading away and the share price declines sharply, even sink lower compared to gains. It was no different with Axiom Corp pumper. The paid promotion made some highly-positive statements. Here, it is vital to know that the job of promotional outfits is to support the company’s stocks. In Axiom’s case, Investor Edge is believed to receive large amount between $170,000 and $200,000 for creating public awareness for Axiom’s stock.
The discount price
The second major problem related with the company is the problem of discounted shares that can be introduced in the market. Some years ago, Axiom sold over 26 million shares priced at $0.0015. It was due to the increased stock price and extended interest, a large percentage of the shareholders got opportunity to post record gains. As a matter of fact, when a large part of discounted shares enters market, the share prices are negatively affected as it happened with Axiom in this week.
Last Monday Axiom Corp posted the record share volume of 7.4 million and dropped by over 45%. Just after two days, it declined another 38% while in last trading session the AXMM ticker dropped 3.19% to close at $0.300 with share volume of 405,476.