With massive brand awareness and personal usage steadily increasing, electronic cigarette companies are taking to the publicly traded exchanges to give their users and individual investors a chance to profit from this rising trend. For the non-believers who think e-cigs are a fad or predict they will be banned, a closer look at the participants in this space and their financials should paint a different picture.
Vapor Corp., founded in 2010 in Ft. Lauderdale, recently reported Q3 net sales of $6.4 million or approximately 66.3% or $2.6 million greater than net sales during Q3 of 2012. This was attributed to product variety, lower unit cost and higher volume purchases from suppliers. VPCO also received a $9 million cash-infusion from a private placement completed in October, supporting the company’s plans for growth and expansion. The company has a market capitalization of $765 million and the stock recently conducted a 1-for-5 reverse split, now trading at $9.45 under the ticker VPCOD for the next 20 business days.
The other publicly traded company in the electronic cigarette arena is Victory Electronic Cigarettes Corp. trading at $9.05 with a market cap of $468 million and an impressive 52-week range of $0.56 to $60.00. However, it may be hard to enter or exit a position in ECIG with an average daily trading volume of approximately 1,000 shares. The company is headquartered in Michigan and initially began in 2010 as an online e-cig company, eventually expanding into retail in 2013. The company announced its acquisition of UK-based VAPESTICK for $70 million in cash and stock.