Vapor Group Inc (VPOR)

[Wolf91]

EIGHT FACT-BACKED REASONS WHY VPOR IS A MUST BUY

I obviously put a lot of work into this. All these quotes and facts are from quarterly reports, 8ks, PRs and the pot stock radio...(Psss i'd LOVE if you read it all, but a really huge find is talked about in point 6 and hanover is talked about in point 8)

1) VPOR has shown that they do not have plans for dilution!

Not only has VPOR reduced the A/S in HALF down to 1B, but they have also reduced the amount of common stock issuable to management via Preffered B by 33% from 750M down to 450M. Those are the shares that go to the people making these decisions! Not to mention, those shares can not be touched until JULY of 2015! On top of this, Dror has said it himself that he does Not have any plans for a R/S. He stated that (like most of us know) R/S's only artifically inflat the PPS for a short while and then it drops back down usually to where it was. He said he won't do it because it will only hurt the shareholders. Before we found out that the Hanover debt was retweaked to remove the automatic conversion, Dror even said (in the interview) that he wouldn't even use a R/S to get the PPS above the conversion cutoff.

Okay, but what is a stock without revenue?

2) Good point! That's why VPOR's revenue has only increased!

In early 2013, the revenue for Q2 was barely 100K!...what has happened since? Well the revenue for Q2 of 2014 was 1M. This is not an anomaly, since Q1's revenue was almot 1M as well! This also shows a continuous growth between quarters. Can you just imagion what Q3's and even more so Q4's revenue will be? We'll get to that later (keep reading!).

Yea, but VPOR is a weed stock, and now that weed is over VPOR is over!

3) VPOR is not weed DEPENDENT. VPOR is weed related, and electrions are coming VERY soon!.

BUT it does get revenue becuase of weed, not to mention weed 2.0 is coming. Elections in FL, Alaska, oregon and D.C will take place NOVEMBER 4th. Vapor is obviously located within Florida, and preliminary polling results have shown the Florida iis very close to the 60% requirement (prelim --> 58% favored, 9% undecided). D.C. is also a state that Dror has stated as a target for product expansion. REGARDLESS, the hype will help bring Vapor's PPS back up either way.

Okay, but VPOR has nothing to do with weed so elections doesn't matter

4) Lets talk about products.

First, vpor is always coming up with new ideas. It's releasing new designs and new products NEVER before seen. Take for example their newly released product that features non-combustable coil-featured vaporizer for...dry herbs :). You're not going to be smoking parsley with these things. That's where vapor and weed become one. Not to mention that Vapor always has their CBD oil in their back pocket. Dror said in the pot interview that he is waiting to see the legal issues of it through first, but said "likely" get into it once he knows there won't be any negative concequences. He also said that NEW products will be coming in the near future!

Who cares if VPOR doesn't post profit! Ha!

5) MADNESS?...THIS IS PROFIT! (sorry, I had to)

Even a quick glance can ease you mind on profit. Profit for Q1 of 2014? Just over 300k. Profit from Q2? just over 500k. But you think that's it, and that profit will leave? Now...I expect a lot of profit will go into furthering Vapor, paying their new employees, franchising lawyer, paying for the brick and morter stores, the party, and advertising. But, there's new things coming to Q3...

Yep, VPOR's dead and you're lying

6) Okay, here's a breakdown of what I think will affect future profit (including Q3)

This involves several aspects to stay with me. Lets first remind ourselves that while VPOR is weed related, it is not weed dependent. So Does that mean their profit is done with? Well, some DD will tell you otherwise because: Vpor has opened THREE brick and motor STORES. Only one store will be FULLY reflected in Q3, because the 2nd and 3rd stores were opened in August, and so will only reflect 2/3rds worth in Q3. Vapor has been very actively expanding their distribution ability. There are so many factors that play into this. First, there's the two execs that Vapor hired. Those execs were responsible for OVER HALF of their old company's sales. A company that Dror said was even larger than Vapor. That team to two had distribution deals with places like Rite Aid. Second..remember AMERICAN SMOKE? Well Dror sold it to Yaniv, and those revenues make from the inventory of american smoke start feeding into Vapor STARTING QUARTER 3! Third...at the time of the interview, Dror said their current inventory was equivalet to 1.87 MILLION bottles of liquid, which is sold anyway between $1-$1.35. You do the math. Fourth...we should all know that vapor is actively looking to franchise their Total Vapor store. The total cost of this for a person to start up their own store is figured at 30k. Vapor will then make about 4-5k as an upfront franchising fee, then they make more money because the store has to buy 70% of its products from vapor, and finally anything non-vapor that is sold will include royalties that go to vapor. Finally fifth...think about the NEW distribution deals Dror said he figures that with the new execs vapor will be in about 10,000 stores BY ABOUT THE EOY....here's a REALLY interesting note alllllllllll the way back to the pot stock interview. Dror said if they landed a big distributor they were going to "go to California or Washington right away"...now, reread that last PR released that mentioned California. Think about the new Execs distribution experience. Oh yea ;)....what...you want a bonus reason. Fine....SIXTH...first, credit goes to windsortrader519 for this find. Okay, now parlez-vous français? No? Well if you don't speak french, then you can always use this google translate site http://itools.com/tool/google-translate-web-page-translator to translate stuff like...VAPOR'S FRENCH BASED TOTAL VAPOR SITE! www.totalvapor.fr....and you were worried about future revenues...Ha.

But they spent X amount on advertising, and I can prove it in the next quarterly report!

7) Have you read the past Q's? VPOR spent almost 200k last Q in advertising and even more in Q1. Is advertising bad?

Advertising is not bad unless you don't want to sell products. Now what most people are up in arms about is that whole "200k" pump. IF vapor didn't do it, then it was likely part of the (likely) SPLI note dump. But if vapor DID actully pay SOMETHING (200k seems too much, and there have been strange this occuring with that evidence) then they did it for a good reason. You seen, longs here know that for a LONG time volume was terrible. It didn't matter what happened because no one knew about what VPOR had going on! We were lucy to see 2M in daily volume. And now? We usually see 2M in volume in the first two hours of trading! The past few weeks we've had volume that wasn't seen since this stock was at 0.45. Volume precedes price...and price will come!

Oh yea...well...(I'm running out of objections haha)....oh yea, HANOVER! Look what they only paid!

8) Did they pay off as much as we wanted? No. Did they deal with it? Yes. So did they tell the truth? Yep. Read the rest though.

I know everyone wanted to see as much of that gone as possible, but just remember what VPOR is doing at the same time. They're opening and running new stores. They're making new products. They hired a franchising lawyer. They hired new sales executives. They had the cock tail party to increase awareness and look for distribution deals. And let me say, Yaniv didn't post his nice smiley's Oct 10th on twitter for nothing. The debt was handled. It will be paid off. Not to mentioned they reworked out the deal with hanover to remove the clause for default under 0.18. HERE'S THE THING. In the pot interview Dror even said the conversion would never happen. He said, why would hanover want to only get a 30% discount when they can get shares at 0.15 when this stock "goes to the moon". EVEN HANOVER believes vapor is going to explode! And by the way all that loan money went entirely to inventory!. More telling, Dror said it himself that given the choice he would rather spend money on adding additional revenue then use that money to pay off the loan. This makes sense now that we now for sure the conversion wouldn't happen. Dror can potentially add millions in revenue from what he could have used to pay off a single million in debt. Then those NEW revenues can go to pay off the debt and more. Dror is a very smart and aware man.

This company has a plan, and Dror has personally told you most of it. Despite that, people panic and spread rumors and dump their shares.

Some IMO future thought, I expect vapor to release a PR by the EOY and very possibly in November about a big distribution deal (likely in CA according to their recent PR). I expect Q3 revenues to be up, I expect profits to be a slightly less percent of Q3 revenues compared to what we saw in Q2. Think about it, they put money into a lot of things these past few months. Q4 is in the farther future, but already I think we'll see record profits and revenues.


I'll finish with saying this. What has this company done wrong? Think for a minute. Now think what has this company done right? Take longer, you'll need it. Finally, now think about what this company has planned, what it is just waiting to unviel, and has lined up for the future.

The last question is...do you want to make money? If not then sell...if so, then VAPE ON!

All IMO and all that stuff ;). In investing you should always make decisions for yourself. Take what I have given you in this, and independtly decide. GLTA


P.S.!!!!! I'll edit this as new info comes available, and to those who PMed me that they marked me I marked you back ;). Any new marks will be GREATLY APPRECITATED and returned!