AXXA Poised for a Breakout

Investment and Company Research
Opportunity Research
COMPANY UPDATE
 

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EXXE GROUP, INC.

Exxe Group’s Stock Poised For a Breakout

Rob Goldman
[email protected]

December 05, 2019
 

EXXE GROUP INC. (OTC – AXXA - $0.0178)

Industry: Diversified Growth Price Target: $0.40
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise.

 

KEY STATISTICS

 
Price as of 12/3/19 $0.0178  
52 Wk High - Low $0.0374 - $0.0022  
Est. Shares Outstanding 398.4M  
Market Capitalization $7.1M  
Average Volume 2,425,250  
Exchange: OTCPK  
 

COMPANY INFORMATION

Exxe Group Inc.
14 Penn Plaza, 9th Floor
New York NY 10122

Web:     www.ExxeGroup.com
Email:   [email protected]
Phone : 855.285.2285


 

Conclusion: All arrows appear to be pointing up for AXXA. This undervalued stock is generating enviable financial results while positioning itself as an emerging leader in some of the fastest growing industries. With a series of game-changing events around the corner, the gap between the current ridiculously low market cap and its impressive high book value will narrow. Plus, as deals close and are folded into Exxe, strong financial results are set to continue to occur, with higher stock prices to follow.

The Best of Both Worlds? By taking an innovative approach to asset growth and acquisition, AXXA offers reduced risk and high revenue growth as compared with typical high-growth loss-making companies.

AXXA Growth Rates Signify Higher Valuation. The September quarter numbers are just so impressive: Revenue jumped 484% to $2.6M while book value rose by 164% to $99.8M—a 20% increase from the June period. Operating loss was $261K but as the acquired business are further integrated and product/service synergy occurs, this loss will narrow and convert into profits.

Calm Before Major Activity and Share Jump. For AXXA, things have been quiet. Still, management has managed to execute innovative sustainable tech and agribusiness deals, reduce the share count by 8% and prepare for a Reg A+ offering---likely at a premium price due to closing its heavy, diverse, quality deal pipeline, narrowing of huge gap in book value to market cap ($99.8M to $7.1M), and achieving profit early next year. Thus, we reiterate our twelve-month $0.40 price target.

Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report or article, accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

Disclaimer

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