Just Who Is Axis Technologies Group (AXTG-OTC)?

Stock Ticker: AXTG

Investors are always looking for new stock names, with new hypes and new promises that they can gamble with.  Axis Technologies Group (AXTG-OTC) is one of these new names.  If you look at the chart herein you’ll see it has risen more than 300% from its lows in the short time it has been public and its trading volume has been through the roof for an unknown name. 

Until recently there was almost no data out on the company.  The company became an OTC-Pink Sheet listed company at the end of October and the company has been a press release factory ever since.

Axis Technologies, Inc., with headquarters in Lincoln, Nebraska, was founded nearly five years ago to develop a dimming/daylight harvesting fluorescent ballast as an energy-efficient and cost-effective fluorescent dimming ballast.  Its patented control system is installed in each individual ballast creating a dimming/daylight harvesting (DDH) system out of each individual fluorescent fixture that requires no external control system, and reduces labor costs of installing and adjusting dimming systems that are used with conventional systems.

Since listing, it has issued the following press releases (summary) in a non-stop fashion:

NOV 9: Selected for Marion Garrish Community Center in Derry, NH.

NOV 10: Signs New Manufacturers Representatives with NRG Sales, LLC

NOV 13: Kennebunk Schools (ME) Select Ballasts

NOV 13: Beacon Research Started Coverage at Outperform & $3.06 Target (was paid $6,000 by third party to be enrolled in research program)

NOV 13: Harrah’s Casinos to Install Axis Ballast Systems (2 parking garages in NJ)

NOV 14: Becomes Preferred Energy-Efficient Supplier (1 of 10) With San Diego Gas & Electric

NOV 14: University of Maryland Requires Contractors to Utilize Axis Products in $20 Million Project

NOV 15: Major Airports Evaluating Axis Ballasts: Dallas/Ft. Worth (DFW); Harlingen, TX (HRL); Sky Harbor in Phoenix (PHX), McCarren in Las Vegas (LAS) and George Bush in Houston (IAH)

NOV 16: Texas A&M Study Documents Significant Energy Savings at DFW Airport After Axis Product Installation

NOV 16: Axis Products to be Installed in Walgreens Locations (testing)

NOV 17: Axis Adds National Sales Manager for Original Equipment Manufacturers

NOV 17: National Park Service Achieves LEED Gold Status by Installing Axis Ballasts (in Omaha)

NOV 20: Axis Receives Endorsement from Lincoln Electric Co. After Case Study Shows 69% Energy Savings

NOV 20: Speedway Motors Utilizing Axis Dimming/Daylight Harvesting Ballasts (in Lincoln, NE)

NOV 21: The Principia Selects Axis Technologies, Inc. Ballasts (private K-12 campus in St. Louis)

NOV 21: Federal Energy Act Provides Tax Incentive for Energy-Efficient Lighting (meets the criteria for Federal Energy Policy Act 1331 of the Energy Policy Act of 2005 that went in to effect January 1, 2006)

NOV 22: Ballasts Now Being Installed in Zorinsky Federal Building in Omaha, NE

NOV 24: Department of Homeland Security Facility (in Omaha, NE) Achieves LEED Gold Status After Installing Axis Ballasts

NOV 27: Department of Homeland Security Facility Achieves LEED Gold Status After Installing Axis Ballasts (essentially same release as NOV 24)

NOV 27: Axis Technologies Group, Inc. Board of Directors Schedule Meeting to Discuss Forward Split ("due" to the current demand for AXTG shares, limited public float and the current price)

NOV 27: Estimates in Excess of $3 Million in Sales from Overwhelming Market Response

THIS MORNING: Axis Technologies Releases Three Year Revenue Projection as its business plan targets (Year-End):
December 31, 2007         $12,900,000
December 31, 2008         $25,800,000
December 31, 2009         $42,570,000

"Recent developments with large retailers as well as government contractors make us quite confident we will reach our sales goals as projected in our business plan" said Kip Hirschbach, CEO of Axis Technologies Group, Inc. (the quote from the release).

This may truly be a revolutionary energy and labor cost savings mechanism, and maybe it is just another energy saving company.  With OTC stocks like this you just never know.  It seems that while companies operate as a business that some companies also have a side business of being a public relations and press release factory, and that thought may emerge here if the thought hasn’t already taken hold.  Now the public has an idea of what the company is looking for out of itself.  Some of these companies go on and graduate off the OTC and Pink Sheet roster to become great companies, but most do not. 

I won’t try to be a party pooper here and make any predictions about the company after it has already risen some 300%+ from its lows, but investors have seen this many times before.  The company may work out great, and maybe it won’t.  We don’t have any dogs in the fight, but when we see highly unusual activity and unusual patterns from companies it is worth making note of.

You are welcome to look into the company further at the company main URL.  We won’t be digging much further into this and you’ll have to decide for yourself if the company is going to end up being a feast or just another famine from here.

Jon C. Ogg
November 28, 2006