Exxe Group
Momentum & Growth

Exxe Group Inc (OTCMKTS: AXXA) Destined For Further Gains

Robust revenue and asset growth are some of the developments that affirm Exxe Group Inc (OTCMKTS: AXXA) growth metrics and long-term prospects. The company embarking on an aggressive acquisition drive in a bid to accelerate growth has also continued to strengthen market sentiments. It thus does not come as a surprise that the stock has started bottoming out after a deep pullback from one-year highs.

Exxe Group Price Analysis

The stock has recovered from the $0.01 support level as investors react to a flurry of positive developments that underscore the strengthening of the underlying fundamentals. The acquisition of an $8 million Hemp grower, as well as the introduction of a new $40 million acquisition pipeline, continues to affirm the company’s long-term prospects.

AXXA Daily Chart

A rally to the $0.02 level has since opened the door for the stock to make a run for the $0.03 level, the immediate resistance level standing in the way of further upside action. Exxe Group rallying and finding support above the $0.03 level could pave the way for bulls to push the stock higher on its way to recording new highs.

What Does Exxe Group Do

Exxe Group casts itself as a diversified corporation focused on acquisitions, in sectors with vast opportunities for growth. Through subsidiaries, the company has operations in various sectors from real estate, to technology as well as media and financial sectors. The acquisition-driven company has also expanded its footprint into the hemp industry through acquisitions.

Revenue Asset Growth

Exxe Group has started surging after a period of consolidation at the $0.01 level on announcing a 240% quarterly revenue growth that came in at $1.2 million. The fact that revenue growth was in the various industries, in which the company operates, underscores the fact that it does not rely on one set of business of growth.

“We are very pleased with the diverse mix of quality companies in our group that are primed to generate consistent revenue streams and build on these streams. In essence, Exxe Group represents a mini-economy with the objective of maximizing shareholder value,” management in a statement.

In addition, shareholder equity grew 110% to $80.3 million compared to $37.8 million for the corresponding quarter last year. The growth stems from Exxe Group aggressive and targeted acquisition drive that has allowed it to venture into business with vast opportunities for growth.

Exxe Group Acquisition Drive

The impressive financial results come hot on the heels of Exxe Group expanding its business empire with the acquisition of DHE Group in Eastern Europe. The acquisition further strengthens the company’s real estate empire as DHE Group key assets include Industrial storage and mixed-use space that generates up to $1 million in rental income.

DHE Group also joins Exxe Group with an industrial parts manufacturer that generates up to $2 million revenues with over $1 million in inventory levels. DHE Group acquisition marks the first step in the company’s bid to acquiring $40 million worth of assets in real estate as well as financial services and fintech.

As part of a business diversification drive, Exxe Group has also in the recent past completed the acquisition of a controlling stake in Flying Creek Trading Group (FCTC) with assets valued at over $8 million. FCTC specializes in commodity trading as well as manufacturing and offering consulting services

FCTC will also provide Exxe Group with exposure to the hemp industry as it is currently working with community growers. The company should also strengthen Exxe Group revenue base, given its annual revenues of more than $2 million.

Bottom Line

Exxe Group has made impressive strides in diversifying its core business by expanding its footprint into fast-growing industries. Swift asset growth through acquisitions as well as growing revenue base underscores why the company deserves a higher valuation from current levels.

240% revenue growth in the recent quarter underscores the company’s growth trajectory. The stock bouncing back after a deep pullback indicates renewed investor interest in response to the solid underlying fundamentals.

The stock looks set to continue edging higher as investors take note of the company’s tremendous potential. Look for new highs by the end of the year in AXXA.

We will be updating our subscribers as soon as we know more. For the latest updates on AXXA, sign up below!

Disclosure: We have no position in AXXA and have not been compensated for this article.

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Exxe Group Inc (OTCMKTS: AXXA) Destined For Further Gains
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