Vape Holdings Inc. (fka VAPE)

[tibt913]

http://seekingalpha.com/instablog/40890845-night_falls/4929785-vape-1-really-possible

VAPE: Is $1 Really Possible?
Nov. 1, 2016 1:53 PM ET|Includes:Vape Holdings, Inc. (VAPE)
Vape Holdings (OTCPK:VAPE) is on fire. While the company itself has it's own fair share of struggles for legitimacy, VAPE stock continues to climb at a staggering rate. As I have said before, unlike other fraudulent share selling scams traded in the OTC Pot Stock sector, I have actually used Vape Holding's products. So far as I can tell, Vape Holdings is trying to establish itself as a legitimate cannabis entity. Having at one time commanded a market cap of $400m+, is it possible for this small penny stock to once again reach the lofty dollar per share mark?

During the Pot Stock Bubble of 2014, VAPE was worth over 40 per share. Keep in mind the company had just come off a reverse split, reducing the share count to a miniscule 10m outstanding shares. With 10m shares at 40pps, the peak of VAPE's 2014 marketcap reached $400m and some change.

As you read this, keep in mind my wacky, unproven theory about a "$500m ceiling" to the exuberance of these OTC Pot Stocks:

http://seekingalpha.com/instablog/40890845-night_falls/4927444-500000-000-ceiling

Applying that kooky concept to the 2014 highs and VAPE's current fundamentals, VAPE's stock would be worth approximately 1.20 or so.

This seems crazy, but weirder things have happened. Remember the DotCom Bubble? During that time certain companies were given marketcap valuations higher than their entire respective industry. For example, Pets.com was valued around $25b whereas the entire pet product industry was barely worth $20b. In fact, Pets.com was worth more than PetCo, PetSmart and all other pet companies COMBINED. A similar valuation occurred with eToys.com, a company valued more than the combined total of most of the large toy retails of the day. If the same sort of irrational exuberance was applied to VAPE that was applied to Pets.com or eToys.com, VAPE's pps could be in multiple dollars.

However, before we start planning exotic car purchases and beachfront retirement property, it would be nice to see VAPE crack into the .10 range. Today's volume speaks volumes as VAPE traded its daily average in the first hour of the trading day. This is reminiscent of 2014 and not of the small, unsustainable pops over the past few years. As of the time of this writing VAPE has traded over $1.5m in daily volume, which for a penny stock is quite remarkable especially considering this rally is already about 2 weeks deep.

There is a lot of money being committed to VAPE. In a sector rife with fraud and deceit, VAPE seems to be a potentially viable company selling a legitimate product. I have no fear in plunking down some capital at these levels.

Additional disclosure: I have and will not be compensated for this or any writing

Stocks: VAPE