E-Cig Companies Going Public: Time To Invest? VaporInformer.com

E-Cig Companies Going Public: Time to Invest?

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.

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