Vape Holdings Inc. (fka VAPE)

[Night_Falls]

Reigned In By the Technicals
http://stockcharts.com/h-sc/ui?s=VAPE&p=D&yr=0&mn=4&dy=0&id=p03393843696

Despite being beaten down to post r/s levels, VAPE has mounted a small comeback and while I'm about to discuss some technical analysis, releasing the quarterly earnings on time with decent results may give VAPE a fundamental starting point for a rebound.

Looking at Friday's rally on the chart linked above, the pps rallied to an unsustainable deviation away from the mean as it popped well above the upper bollinger band. I'm a firm believer that moves like this always retrace at least to the mean. VAPE also strongly pushed through the 50 day sma. The 50 is actually leveling off, the mean pps is turning upwards and the MACD has positive divergence. Technically VAPE looks to be turning a corner.

Fundamentally VAPE is also shaping up as it appears the company now has some income from operations but also still some income from share selling. I haven't had a chance to really pour over the quarterly report but from a cursory glance it appears Hive is generating revenue. Hey, just reporting earnings on time is a big step.

With a low float of 11m (according to the quarterly) VAPE appears to be a player. I misjudged Kyle in my first few conversations with him especially when he expressed skepticism about the behavior of an executive from a different MJ company. Today, it appears that Kyle's restraint in issuing PRs only for significant developments has brought him credibility whilethe other company's executive recklessly releases PRs when he cleans the toilets at corporate HQ, destroying all his credibility.

I have purchased some more VAPE in the .45-.55 range bringing my cost basis down. I really wish VAPE could uplist to a real exchange so there were derivatives traded to hedge the risk of buying.