As a former Axion insider, I believe recent criticisms of its low PRQ are understandable but misguided. Micro-cap companies developing new technologies usually spend all their time talking about “how good things are going to be” because they haven’t done anything yet. Happy-talk may sell for a while, but research, development, manufacturing and product commercialization rarely follow a predictable timetable and disappointed stockholders can become big problems when they find themselves traveling the trail of broken promises.
Axion has spent four and a half years quietly taking a disruptive new battery technology from a novel idea to the factory floor. Questions like “will our PbC technology work” and “can we manufacture PbC products in a legacy lead-acid battery plant” have been answered. Today’s big questions are “how can we make our planned PbC products better” and “how can we manufacture PbC products in sufficient volume to meet expected demand.“
Axion owns a plant that is currently making both conventional and PbC batteries. The development path for its new electrode fabrication systems is clearly defined and with the recent Quercus funding, the money to execute the plan is already in the bank. As Axion turns its plans into accomplishments, I’m confident that we’ll hear about them.
What we won’t hear about are the batteries Axion plans to sell for use in products that somebody else plans to make beginning in 2010.
Two Axion directors who were its biggest pre-Quercus investors built four private companies from the ground up and then sold them to industrial giants. Management understands that planning, studies and white papers are nice, but the only thing that really matters is execution; making a product for sale to real customers with current needs.
Axion has a low PRQ. It also has a four and one-half year track record of sequential accomplishment, something to which most small companies can only aspire. Axion’s “milestones achieved quotient” (MAQ) is enviable. So is the management team’s “put your money where your mouth is quotient” (PYMWYMIQ).
My mother taught me that actions speak louder than words. Given a choice between PR hype that creates temporary price action and a substantial track record that builds solid shareholder value, I’ll take the track record!
As a former insider, I applaud you for taking the time to speak. It took about 30 seconds to trace who you probably are, and I am glad you put in an appearance.
-There is no doubt that many of the nanocaps are hot air balloons first and foremost, and well-heeled companies second. But that does not make PR inherently evil, and I am positive that you know precisely what I mean. It is a question of balance.
-How balanced is AXPW? It has basically been ignored while it claims to have an exceptional technology. That is not just a matter of share price, it is a matter of trading volume too (and who could suggest -that- is not a problem).
-It also may be that that Axion does not need a higher share price at the moment. It is possible. But reasonable degree of PR brings opportunity, and the PR needed most is evidence "out there" that this thing really works. I think you really need some white papers that can be examined carefully. It is dangerous to put out pop-sci info, because the flamers will try to make you look like a turkey in no time.
-Life is much more fun when the market gets the message. And you know that. So I don't really buy your argument, but I hope you do not take offence because I mean to give none.
-This is a topic of some passion for many. If AXPW has something, it is time to show some cards, and I believe you will.
The biggest problem with building a track record or even publishing a white paper is that you have to carry a testing cycle through failure and then analyze the data before you can publish anything more than a progress report.
Axion has announced a number of important pending initiatives including the design and installation of a second generation electrode fabrication line, a NYSERDA funded utility grid demonstration and a planned HEV demonstration. As these projects reach important milestones, I believe Axion will release the details. But until the milestones are reached it is unlikely to put out news that might be interpreted as noise.
I for one would love to see higher prices and more volume. But I would prefer to see both build slowly based on tangible accomplishment. Over the years I've seen small companies do incredible damage to themselves and their stockholders by speaking too early or too often. Surprising the market with more than it expects is always a joy but trying to explain away unkept promises is often a catastrophe.
My best observation is that Axion's management does not speak lightly, but it's always a good idea to listen carefully when they have something to say. It's also a good idea to read all of its SEC reports because they contain a wealth of hard data.
I hate talking about patience because I have so little myself. But it is a virtue.