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Axion International (OTC BB: AXIH) Back in Action |
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Forget the hype- let's look at the real numbers. Axion International (AXIH) might just turn out to be one of the hottest penny stock stories of 2011. I absolutely love this one, and it could be a gigantic winner both tomorrow and for the longer term.
Before we dive into the hard, and I mean hard numbers, let's have a quick review of what they do. Here's the most simplistic overview- Each and ever year there are 200 billion plastic water bottles used and consumed on Planet Earth. That's a hell of a lot of plastic.
AXIH takes those used water bottles and turn them into construction grade materials. I just love this picture of the tank. Not because of the tank itself. That's pretty cool. However, there's more to it.
This tank is crossing a bridge over a creek at a US Military installation. The beautiful thing about the picture for investors is not the tank- it's the bridge!!!- The bridge that is holding up this tank is constructed entirely out of AXIH's recycled plastics. It's absolutely amazing.
The technology comes out of Rutgers University, and it's a specially patented process for turning left over recyclable plastics into construction grade materials. We're not talking about just bridge materials.
The process has a number of major applications and the company has devised a number of ways to use it.
AXIH is turning left over recycled plastic into Tongue and Groove Flooring, I-Beams, Railroad ties, and pilings. The amazing thing- this plastic can hold up a tank or a train, and it never, never, never degrades from weather, water, or insects. Railroad ties made of wood eventually degrade no matter how they are treated.
Even concrete has a level of structural challenge that weakens over time when exposed to water over any length of time.
AXIH's plastic? it simply never degrades in any kind of environment, and it gives us something to do with those 200 billion water bottles. You want green and valuable to the economy? This is American innovation at its finest.
Here's the key from an investors point of view. The products and this process have been in development for over 4 years. This is their year to become commercially viable. This is the breakthrough year. And, if you believe as I do that stocks trade based on investor perception of the future, this one has a real chance of catching fire very soon.
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How About the Numbers? |
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Lest you think it's not happening on a commercial level- think again. On February 1st of this year AXIH announced it's first major contract- $15 million over three years to a major American rail road. Just make up the name. You know them, and so does Warren Buffet who bought one of them last year. I'd call that a good start.
Shortly thereafter, and the last time I covered this one- AXIH signed a contract with Alcoa (NYSE: AA)- their Alcoa Fastening System subsidiary placed an order to buy Railroad ties for Australia- a country that is rebuilding after the floods in the Fall. Pretty heady stuff for a smallish company.
The last time I covered a new contract for this company- you guessed it- about a 40% gain over the the next four days.
AXIH has been a little quiet of late- why? Because they were closing an $8.5 million financing to get the capital they need to fill their orders. The $8.5 million came in, and those investors own the stock at $1.25- right where it is right now.
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Why You Need To Act Today |
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As usual with the OTC Journal, you're first to know.
Anybody out there live in Dallas or Ft. Worth? If so, you're probably familiar with DART- Dallas Area Rapid Transit. The Trinity Railway Express connects Dallas and Ft Worth by rail, and they've decided to replace their rail ties with AXIH's proprietary Recycled Structural Composite cross ties. They'll be replacing the ties at the "Beltline Overpass"- a structurally sensitive part of the rail line that requires constant maintenance.
While this is only a $250,000 order, it's a part of the starting point for a very exciting story. The company has already inked about $20 million in new business this year, and is well on it's way to major top line growth and bottom line improvement.
Today's news serves as a reminder of just how great this one is shaping up. Here's the list:
- $15 million for one major domestic household name rail road
- An order from Alcoa for Australia- Dollar amount unknown at this time
- Now- and order from that Dallas/Ft Worth transit authority
And- even better- look at the chart.
The last time I covered this company, the stock closed at about $1.20, and was $1.50 in a matter of two trading days. Easy to scalp a quick trade if you acted early and popped out.
When the stock got back down to $1.20, it popped up again into the $1.50 range almost immediately.
One of these times this stock is going to pop up and not come back down. I don't know if it will be now or later in the year, but I do know every time this stock has traded into this $1.20 range, it was a really strong trading opportunity.
I don't believe this is the last new contract AXIH is going to announce in the near term. The company just completed the $8.5 million financing at $1.25 per share (nearly the same level it closed at today), and they now have the financial where with all to handle a lot more business.
This could be much better than a trade- this could become one of the great penny stock stories of 2011. Just get in and hang on.
Here's today's news:
Axion International Announces $250,000 Order with Trinity Railway Express (TRE)
TRE Chooses Axion’s 100% Recycled Plastic Crossties as a Substitute for Traditional Wood Ties for Use on the Newly Constructed Beltline Overpass
NEW PROVIDENCE, N.J. - May 23, 2011 – Axion International (OTCBB: AXIH), a leading producer of industrial building products and railroad ties made from 100% recycled plastic, announced that it has received an order to supply $250,000 worth of its proprietary Recycled Structural Composite (RSC) crossties to Dallas Area Rapid Transit (DART) for use in the Trinity Railway Express (TRE) that connects Dallas and Fort Worth.
Axion is servicing the contract through Herzog Transit Services, which operates the TRE line. As part of the initial order, Axion will deliver approximately $250,000 worth of its RSC crossties to replace traditional wood ties. Axion’s RSC is an ideal wood substitute for railway crossties. Not only is Axion’s RSC impervious to rot, insect damage and mold, it is also expected to last for decades due to its proprietary design and construction from 100% recycled plastic.
Axion’s ties will be utilized on a two mile long bridge called the Beltline Overpass. Due to the high cost of having to replace ties on bridges, Axion’s ties were chosen by the TRE due to their strength and longevity, which should significantly lower the maintenance and replacement costs over the life of the bridge.
“Axion’s RSC is an ideal substitute for traditional wood ties across the Beltline Overpass,” said Steve Silverman, Axion’s President and Chief Executive Officer. “Using our patented material, designed from 100% recycled plastic, TRE will not only be able to save on maintenance costs going forward, it will divert thousands of pounds of plastic waste that would normally be headed for landfills, while simultaneously investing in a superior crosstie that is expected to last longer than those currently in use. We would like to thank our partners for adopting our technology in their commuter rail system.”
Named after the Trinity River, which flows between Dallas and Fort Worth, the TRE (“Trinity Railway Express”) commuter rail line was created by an inter-local agreement between DART and the Fort Worth Transit Authority ("The T"). The line connects downtown Dallas with downtown Fort Worth and is the 14th most-ridden commuter rail system in the country. Annual ridership on the TRE exceeds 2.5 million individuals.
Mr. Silverman added, “Now with our product being utilized in a key section of the TRE commuter rail line, we look forward to meeting any of DART’s other future public transportation needs as we continue to demonstrate the real-world applications of our RSC technology, including its superior strength and long-life characteristics.”
Developed in conjunction with Rutgers University’s Materials Sciences and Engineering Department, Axion’s RSC is inert and contains no toxic materials. It is impervious to insect infestation, will not leach toxic chemicals nor warp. Because it is lighter than traditional materials, transporting RSC is less expensive and reduces energy costs. In addition, RSC is completely recyclable at the end of its functional life.
About Axion International
Axion International is a leading structural solution provider of cost-effective alternative infrastructure and building products. The Company’s "green" proprietary technologies allow for the development and manufacture of innovative structural products made from 100% recycled consumer and industrial plastics. Axion's up-cycled products are an economic and sustainable alternative to traditional building materials such as wood, steel or concrete. Developed in collaboration with scientists at Rutgers University, Axion's patented technologies allow for products that are extremely strong, durable, flexible in design, and low maintenance.
For additional information, please visit Axion’s corporate website:
www.axionintl.com
Forward-Looking Statements
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Axion’s actual results to differ materially from those currently anticipated, including the risk factors identified in Axion’s filings with the Securities and Exchange Commission.
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Jim Blackman
713-256-0369
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310-867-0670
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