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I think triple zero picks have incredible potential to move fast and run up big especially when it comes to low float plays. Early momentum typically offers even bigger breakout potential and I think a strong push in the AM could make this a strong candidate to jump into the winner’s circle going into tomorrow:
AXLX Axiologix Inc. Axiologix is a company focused on cloud-based products in VOIP and other data, this was a major step in the right direction as far as management was concerned. Additionally, shareholders also reacted favorably to this news evidenced by the 75% run it went on! In this piece of press, the company states that when completed, the acquisition will increase Axiologix’s gross revenues by approximately 500% and the Company expects that annual EBITDA earnings will increase by approximately $1 million. Velocity Networks revenues are exceeding $5 million a year and currently growing at more than 15 percent annually. Axiologix is creating a nationwide Service Provider of Voice, Data and Cloud services to small and medium size businesses primarily in the United States, and to other operators globally. They are doing this by acquiring strategic technology assets and existing turnkey VoIP and independent operators. According to management, this approach avoids the higher risk and more costly model of relying on exclusively organic growth.
AXLX Strategy
Axiologix focuses on acquiring companies that have proven existing revenue streams with neutral or positive cash-flows/EBITDA at time of acquisition so that greater profits can be generated from the combined entities. AXLX‘s operating companies benefit from the economies of scale associated with becoming part of a larger group; they are more competitive, have greater resources to draw from and are more secure financially. All of which offers security to their business and their customers and facilitates further organic growth.
A thing or two I look at with these kinds of picks on top of the “About Us” are the technicals on the chart and an historic ability to break from established support levels….Not to mention the float. AXLX has a float of less than 400 million shares. The actual total of the float at today’s closing pps only about $100k. In the penny market that’s extremely small in my opinion, so I think an early blast in momentum could show big breakout potential after the sound of that bell. Check out this chart and you might start getting as excited as I already am:
AXLX RSI: Sits deep in “Oversold” territory where I think and early pop in momentum could bode favorably for a reversal
AXLX MACD: Has consolidated with the red signal line indicating that AXLX may just be waiting for a spark to ignited positive momentum
AXLX Accum/Dist: Has been fairly “flat” after June’s “Distribution” trend. But a closer look at this may show that a reversal may be in the early stages of setting up. Accum/Dist has started to move up slightly while the overall chart pattern is the direct opposite. Check out the Chartschool Breakdown of this scenario because it could be the early sign of a “Bullish Reversal” I feel that these indicators could be showing the underlying, positive sentiment with this pick and early momentum could be a major contributor to a run right at the bell tomorrow morning. But there ‘s a whole lot more to this company and in fact, just a few weeks ago, AXLX saw record trading volume on a major piece of news with a strong follow-up announcement a week later. AXLX announced that it had completed a Definitive Agreement to acquire 100% of the equity of Velocity Networks, Inc. (http://www.vel.net), a leading IP Voice and Data provider based in Los Angeles, California. Once completed, AXLX will be able to add to it’s current list of subsidaries to continue to deliver more value to the company and its shareholders: AXLX Subsidiaries
Axiocomm Inc. Axiocomm is a wholly owned subsidiary to offer IP voice, data and Cloud services directly to small and medium sized businesses throughout the United States. AxioComm is partnering with leading technology and service providers to allow us to offer exciting new and competitive services to customers across the United States. AxioComm services are currently being sold via master sales agents that bring a large network of sales resources across the nation.
Prime Carrier Ltd. Prime Carrier is the proven leader in ‘On Demand’ real time trading solutions for the Telecommunications and Media industries. Its ‘MOST‘ solution is established as the industry standard platform for supporting inter-carrier trading. Prime Carrier’s ‘MOST‘ products enable organizations to cost-effectively manage interconnect trading relationships more efficiently. Using Real-time processing of actual traffic data to provide quality, cost and margin information enables an ‘actual vs. forecast’ analysis. This fundamentally reduces costs, improves margins and measures call and carrier quality through a range of metrics.
Pull up AXLX tonight and start your DD. I think this could be poised with big breakout potential headed into tomorrow especially after how it pulled back to support today. Keep in mind that early momentum tends to fuel sub penny plays like this and tomorrow may not be a time to hit snooze. Keep up with me on Twitter and don’t forget to jump into the network chatroom and follow along all day!
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