Short-term winning strategy that paid 64% during AXMM promo

Chart Image courtesy of Yahoo Finance

On July 24 of 2015, our in-house software flagged AXMM as a stock promotion to-be. We did not write an article about it as to avoid a conflict of interest whilst planning to MAYBE play this promotion ourselves… which we ended up doing.

Because we sold out of all our positions in stock of Axiom Corp. on July 30 of 2015, we’ll now do a quick write-up here of the “process” we used to make a small albeit nice nominal profit during the initial AXMM promotion yesterday. We’re not saying the promotion is over, we’re just saying we’re out for now. We rarely hold on to promotion plays for longer than 24 hours.

  1. Found two landing pages for AXMM on 24 July 2015 via our software at Sladderdash.com. This motivated us to do a little due diligence exercise, outlined in the next bullet points.
  2. Checking the AXMM Financials on finance.yahoo.com, looking through some key data points. As is usual with stock promotions, the financials of the promoted companies are nothing to write home about:
    • $–50 000 operating income reported December 31, 2014. Deteriorated to $–379 000 reported March 31, 2015;
    • $1000 of current assets as of December 31, 2014. Improved to $235 000 current assets by March 31, 2015;
    • Current liabilities deteriorated from $-82 000 on December 31, 2014 to $-499 000 by March 31, 2015.
  3. On July 29, 2015, checking if the stock was previously promoted:
    • Twitter and Investorshub: seems promotion is beginning, but not yet intensive and not that obvious;
    • Via e-mail: Sladderdash did not receive any promotional material through e-mail yet;
  4. Buying in a small position on July 29, 2015 after morning peak settles around $0,032 (still a risky 16% above previous day’s close)
  5. Selling out of small position on July 30, 2015 at around $0,0526. Why? We observed a sudden drop in the intensive messaging volume on Twitter and Investorshub, leading us to belive the HOD was near or had already arrived.

This trade yielded 64,375% profit before tax and transaction costs. Our position was not a large one as our order did not fill completely.

Will the AXMM promotion continue? Today, July 31 of 2015, it sure looks likes there will be more messaging going around.

Comments ( 5 )

  • It is pretty well known that AXMM is a pump and dump scheme.
    Are you going to publish the URL’s of the two landing pages you mentioned?
    Are you going to reveal the specific details of your trade by publishing on profit.ly or similar site?
    I am not saying that your article is false but anyone can take that chart and price action and write an article about a play they made on a well known pump and dump company (Any stock in fact ) and later reveal the fact that they made a profitable trade.
    My three best friends Woulda, Coulda and Shoulda are really good at that.

    • Hi Pete,

      Thank you for your comments and questions. Much appreciated. Indeed, AXMM was a confirmed stock promotion at time of publication, and this was not meant as a “we think this stock will be promoted next” type of article.

      Because of recent optimizations to our software, we only discovered both landing pages on July 24, 2015 and per your request, they can be found at axmmstockreport.com and axmminfo.com. We can see they were registered May 26, 2015 and March 12, 2015 respectively. To not confuse anyone with such (relatively) older landing pages, we did not incldue them in the article. However, the sudden volume and price hike in the morning of July 29 motivated us to take a (very small) position after the morning peak settled, given the revival of certain accounts touting the stock on InvestorsHub and Twitter. Similarly, we sold when these accounts suddenly posted less frequently.

      As for your request for ‘proof’ on this particular trade, we are European and as such are using a European broker. This makes it hard to ‘verify’ any trades on profit.ly, provided we had an account. Being American, that particular platform most likely does not support imports from European brokers. If it’s proof you’re after, you’re – unfortunately – going to have to take our word for it. If the case is to see if we are indeed ‘for real’, we invite everyone to take a look into our Track Record and after going through the relevant publication dates there, much like due diligence, make up their mind for themselves.

      Kind regards to you and your three friends 🙂

  • Thanks for taking the time to reply, it is much appreciated.
    I have PSNP and LAHO on my watch list.
    I will try to get in on the long side of one or both of them (for a change).
    Have to admit I am usually too late to get in on the long side as I always look to short the dumps.
    Kindest regards
    Pete and Woulda, Coulda and Shoulda 🙂

    • Yes I did play it on the long side but you were too good at exposing the pump and dump so it never really took off – Ended up a scratch trade – Still watching PSNP too see if the pumpers do a better job 🙂

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