We first covered Exxe Group Inc (OTCMKTS:AXXA) about a month ago, when the stock was trading at approximately $0.02 per share. Our case was simple:
Here is a stock with too many complacent shorts shorting too many shares, especially given that the financial prospects of the company appear legitimate. AXXA has strong exposure to high-growth themes, including fintech and cryptocurrency. And its execution shows no significant holes, which sets up the potential for strong Q numbers when they hit.
All of that would suggest the potential for a squeeze under normal circumstances. But these aren’t normal circumstances. We are now trading a market thoroughly deadly for bears and shorts. The tape is littered with bear skins. Look at GME, TLRY, BB, AMC… the list goes on. Half the OTC could be on that list by now.
The playing field is sloped right now due to free commissions, stimulus checks, a rising tide, a Fed set on driving inflation even at the expense of bubbles, and a very mature bull market at the height of its euphoria stage.
Thematically, AXXA has real revenue growth in the MM range being driven by its newly established Bitcoin services segment when Bitcoin is the toast of Wall Street.
Just about in every single respect imaginable, this stock is a ticking time bomb for exposed, entrenched shorts. We said so a month ago. We would say that is actually still the case now… and perhaps more than ever.
Has a 500% intense face-ripping squeeze rally taught anyone a lesson? Apparently not. In the past 5 days, according to OTCshortreport.com, well more than half of all transactions in AXXA have been shortside trades.
Execution
In its most recent quarterly performance update, which reflects performance for the quarter ended December 31, 2020, Exxe Group Inc (OTCMKTS:AXXA) posted $9,263,526 in gross revenues, surpassing the $8.2M record set in its prior quarter, which was up 13% sequentially, and up 103% on a y/y basis.
Net income was even more impressive in terms of rate of growth, with nearly $2.4 million coming in the door on a net basis, which is over 1,500% y/y growth.
AXXA’s revenues for the first nine months of FY-2021 were $23,723,944 and grew 183% as compared to $8,373,694 in the same period last year. Gross revenue per share for the first nine months of FY-21 was $0.048 as compared to $0.021 in the same period last year, an increase of 128%.
Total assets were $215,442,113 in 3Q2021 as compared to $180,216,920 in the same period last year, an increase of $35,225,193 or 19%.
Agribusiness was Exxe Group’s single largest revenue contributor as commodity prices for corn, barley, and wheat prices rose during the Third Quarter. The Company also saw solid revenue increases in its e-commerce automotive segment in the German and Swiss markets.
Eduard Nazmiev, Ph.D., CEO, and President of Exxe Group commented: “Exxe Group is pleased to report record total gross revenues of $23.7M and gross revenue per share of $0.048 for the first three Quarters of FY-21. Based on continued strength in the markets in which we operate AXXA is raising its FY-21 annual revenue forecast by 6% from $30.8M to $32.7M.”
The company also reported that its UK-based 1Myle bitcoin and cryptocurrency exchange services operation began limited trading operations on January 25, 2021. According to the company, 1Myle is currently generating revenues through its professional community network and the plan is proceeding in-line with internal expectations.
Technical Analysis
Exxe Group Inc (OTCMKTS:AXXA) has responded extremely well since our last piece. Shares have trended higher in sequential bursts, breaking above the dime level.
We are now working through a lateral symmetric triangle consolidation, which is generally a healthy sign for a trending move.
However, perhaps most importantly, despite the company’s recent update on its strong performance, the tape is even more packed with short interest now than it was a month ago. Hence, our message is basically unchanged from a month ago, despite the big move higher.
