Axion Intl (OTC BB:AXIH) is a green technology company that develops, markets, and sells recycled structural composite products in the United States and internationally.  The demand for environmentally friendly products should continue to grow in the future.  The company has been increasing its manufacturing capacity and acquiring a significant amount of equipment.  This could indicate that it is about to see a significant increase in its annual revenue run rate, which has been stuck between $4 and $5 million since 2011.  The company began generating revenues in 2009 when it started to monetize technology licensing rights that it acquired (revenues in 2009 and 2010 were around $1.5 million).  Reasons for tracking this company is that:

• It has been diversifying its “product use customer base” due to penetration into new markets.
• It is bringing some of its manufacturing in-house (vertical integration), which it believes will help with margins going forward.
• It is adding customers at a rapid clip.
• The most significant development was the 12/3/2013 announcement that it had won a $42 million 3-year contract.  This translates to $14 million a year, meaningfully higher than the company’s present annual run rate.

Caveats:

• Stock price has run significantly, up around $0.50 to reach a high around $1.40, shortly after it announced its game changing contract.
• We are looking into the capital structure.