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Interesting. I'm going to do some research when I finish up from work and I will see how/If I can secure any records from the testing. Like I said before I'm very green in this area but I think it's certainly worth some time.
Thanks!
That is a great thought. I have no idea how the testing is initiated, or what the process is but if Vpor would send their juices to the FDA labs for testing and could market it as such, I believe that would create substantial value moving forward.
to get a better indication it would have been helpful to know what portion of 1Q revenue was attributable to American Smoke.
1.3 would be disappointing in my opinion.
The Vapor Box has been a very popular item from what I'm hearing, (I ordered one yesterday and there was a problem with my address on the order, I got a call from a customer service person and we had a small chat, she made it seem that they were selling very quickly) All these sales will be in Q3
The B&M locations will have about 2 months of full sales that will also be included in Q3
Assuming that each one does $50,000 in 2 months, which I believe to be low, not including the mall kiosk. That would leave only a small percentage increase Q over Q to get to 1.3
I'm hoping for 1.65+ in 3Q sales
Have you noticed Vpco getting crushed? That is exactly why you don't do a reverse split to temporarily prop up your stock price to up-list.
Thanks for the insight.
That's why I'm holding until the end of the year at least. I want to wait and see how the B&M retail locations in Florida turn out. A lot of panicking selling now for a company that is only 8 months old.
I'm long here about 500K shares. I do understand your message though. I'm also a tad worried about the "Loans to shareholder" on the balance Sheet of $337,112.
Everyone whether long or short, holding or selling needs to consider the following:
Vapor Group is in it's infancy and has been only operating in it's current form for about a year.
The cost of the first few brick and motor locations were included in 2Q expenses, however no revenue was booked for these, meaning that there were costs associated with renting the buildings, remodeling, etc.
The Stock market (S&P 500) is in general very overvalued, and a large correction is likely before the end of the year. All the metrics indicate such, examples include P/E ratio, U.S. GNP vs Wilshire 5000, and margin debt levels (borrowing $ to purchase stock) all indicate a crash is imminent. I have limited my exposure to big board stocks as such.
The vaping market is expanding at exponential rates.
Marijuana market (medical & recreational) is expected to continue with it's momentum and likely more states will get on board with legalization in the near future.
Just my thoughts.
I get you. I suppose what I'm saying is that a majority of people are only seeing a small increase in revenue Q/Q, but that percent increase could be much higher if American Vaporizer contributed a significant amount (15%) or higher of the 1Q revenue. I think a release to clear this up would be very helpful.
SooS416,
I would be interested in what portion of 1Q sales were attributable to the American Vaporizer brand (American Smoke.) If known, we could certainly get a better idea of the organic growth related to the other brands. I know you understand what I'm saying but for others a simple breakdown below will illustrate my point.
1Q sales(revenue)- $966,411 (included American Vaporizer)
2Q sales (revenue)-$1,025,365 (excluding American Vaporizer)
Assume that 1Q-14 150K (?) sales were related to American Vap.
Subtract that amount off 1Q sales, $816,411 to get a true indication of growth, would be approx. 25% Q/Q, which is impressive given none of the B&M were established or contributing to sales in 2Q.
Note 10- Subsequent Events- "As a result of the sale, American Vaporizer ceased to be a subsidiary of the Company, and the financial results of operations and financial; statements of American Vaporizer are no longer consolidated with those of the Company in this Quarterly report."
I would be interested in your thoughts?
Thanks.
Cjeff, you seem a bit confused, so I'm going to give you a brief accounting lesson. Sales occur and are recorded (accrual method) when the money is earned and the selling process is complete, and if the money is reasonable expected to be collected at a later period.
Account Receivable (Debt) increase
Sales (Credit) Increase
When the money is received at a later point
Cash (Debt) Increase
Accounts Receivable (Credit) decrease
Below is a simple example to illustrate what I'm saying:
If Mark Orders $200 worth of Vapor Group products on June 19th, and receives the product on June 22, but is not billed until July (3Q) the revenue would still be recorded in 2Q, but this amount would be reflected in Accounts receivable. Once the cash is recorded it would be an offset (reduction) to the A/R account, but would have no impact on Sales (revenue) as it would have already been recorded. Make Sense?
Why are you here if you don't have a position or plan to initiate one?
I'm not sure I understand your mindless bashing.
I'm not sure I understand your intentions. Everyone of your posts reads "Pump and Dump scam" or "From 200 to 2, the SEC should suspend"
I don't have any interest in this stock but I believe it is certainly worth a value play at this point, or a swing trade as it is very volatile with a large spread between the bid/ask.
Don't try and be rational with him, he obviously doesn't understand the process of creating, reviewing, and auditing financial reports. Vpor's finance/accounting is more than likely handled by 1 person. That means that this person must handle their daily duties while also performing the quarterly reporting requirements. Comparing them to large companies with legions of accounting professionals is outrageous.
Do you think that more people are using vaping as the method to consume marijuana because it is much easier to conceal in areas where it is not legal or do you believe it is the preferable way?
Did you just read what you posted? Because it reads something similar to this:
What if the stock price falls? What if it goes up? What if this is the bottom? what if the bottom is yet to be determined? If this is the bottom it's a great buy, if it's not the bottom why wouldn't I wait till it drops more?
Anybody who says with absolute certainly that they can predict a bottom or top in penny stocks is a blowhard. This is the time to accumulate shares because trading at this level is not rational and does not follow a logical system. It's based on fear and greed that is often perpetuated by pumpers and basher's, especially in a hot sector like mj/e-cigs/vaporizers. The reality is that social media has a huge influence over these stocks, and public perception is often temporarily more important than reality or fundamentals.
The only question you need to ask yourself is "would I rather pay .06 today with the chance it falls to .03, .04, .05 and I lose a small amount of money with the chance to even lower my cost basis, or wait on the sidelines and hope it doesn't shoot up to .20 cents or more in a day and be left with a sick feeling in your stomach because you missed a giant opportunity because you were quibbling over a few cents". To me it's an easy decision. Buy and accumulate now, if it goes down, buy more there at a cheaper price, if it goes up then I didn't miss the boat and feel the need to play catch up. All the preceding text assumes that you believe in the direction of the company. If not, then why waste time on this message board?
All my opinion of course.
The problem in these type of stocks is that everyone is very myopic. People focus on the short-term and see the PPS decline and automatically associate it with a company in the decline. A company & a company’s stock are often two very different beasts, especially in penny land. People panicking and selling now will be the same people rushing to buy when in the .20's. I'm encouraged by the prospects of this company; expanding product line, massive growth online and through brick and motor locations, and a 60% profit margin, from a company that is 1 yr old
This is a market with huge potential. Sure, many of the products may be similar to the competitors, and currently the market saturation appears high, but once there are restrictions put on these by the government we will see significant consolidation in the Vapor/E Cig market, and I expect Vpor to be among the industry leaders.
Many new or first time investors were lured to this market because of the allure of quick riches. The market is a vehicle for transferring wealth from the impatient to the patient.
Pikachu is the biggest fraud on this board. He makes the most open-ended, broad statements. He constantly buys at the lowest price of the day and sells at the highest. He always discloses his trades after he makes them. Anybody who listens to him or thinks he has some profound insight shouldn't be trading stocks in my opinion.
It is not managements responsibility to worry about the daily PPS fluctuations. They should be focused on growing the business, increasing sales, etc. We don't need PR's to artificially inflate the stock temporarily. This market is huge and VPOR is in an excellent position to capitalize on it. If you believe in the business model as I do then you should want lower prices short-term to allow a greater accumulation of shares. Many of you have mentioned that your waiting a year and a day to sell at the earliest to avoid paying taxes @ ordinary income levels. If that is the case then the PPS today is irrelevant.........
All just my opinion.
Good Luck Longs, I have over 250K shares and will continue to accumulate as I can. I don't want to be one of those people in 20 years talking about a major opportunity that I missed because I was too frightened to take advantage of what I believed to be a live changing opportunity.
Fortune Favors the bold!
Spshond,
Here are my thoughts on your last two posts with regards valuation of MCIG, VAPE, & VPOR.
Vape is very over priced. I believe that 30K in 5 days is not indicative of their actual revenue potential and is more likely a revenue timing issue that was accelerated to appear more desirable on their financial information. Also, having excess cash on your balance sheet is pointless unless you can use it to generate a return.(ZNGA has 2.5 billion in cash/cash equivalents on their balance sheet, how is that working for them) As long as vapor group can meet all short term obligations (payroll,taxes, supplies, etc) I'm not worried. We should be focused on growth at this point, and as long as were growing revenue quarter over quarter, positive cash flow will follow. Vpor took the loan to build inventory and drive sales, borrowing money is not necessarily a bad thing when profit margins are in the 55-60% range.
I haven't done much research on MCIG. However you mentioned their paying all those celebrities to endorse their product, that sounds expensive. Do you have any information on what their paying each of them?
I don't believe we need to reduce O/S shares, but reducing the A/S count may instill confidence and ease speculation about potential dilution down the road.
In my opinion, anyone panicking now and selling doesn't belong investing in the first place. Nothing has changed with the direction or financials of the company. I do not invest in penny stocks, and I have a few hundred thousand shares and plan to buy more when additional funds clear. Why? Because I see the potential of this massive emerging market. Sure. This stock could go bankrupt or churn in the sub penny land, and eventually default on the loan stipulations, but I doubt it. I will be a holder and will not sell a share as long as revenue Q over Q continues to climb and if the price drops further, I will purchase additional shares. I would rather lose 15K (and deduct it off my huge YTD gains on HK) with the opportunity to make several hundred thousand dollars down the road. Anyone panicking now, please sell your shares and keep it moving, because a CD or savings account, not the stock market is where you belong putting your money. Fortune favors the bold. Today’s stock price is irrelevant.
Thanks for sharing.
This is the type of valuable information/knowledge that this board needs.
In response to the article written by hotstocked I believe only the 2nd from last paragraph has any substance.
I looked back at the form 8-K filled by AvWorks on 4/7 and the 10-Q filled by Vapor on 5/20, and it does appear that the debt conversion was executed at a price of around .0012/share. However between 1/17/14 and 2/10/14 SPLI was still trading below .01 The close on 2/27/14 was only .05 (The author is mistaken with the balance of the notes at 75K (42500+32500) not 57K. It is also important to note that when Vapor Group acquired AvWorks they also absorbed their issued and outstanding shares, as well as the predetermined share structure. Meaning that SPLI, not vapor gave their creditors very favorable stock conversion terms. Despite that I see many positives here. The fact that many of the creditors are choosing the stock conversion makes me believe that they have confidence in the pps rising. A creditor doesn't want piles of worthless paper after all. It could mean they quickly cashed out their stock (assuming its not restricted) after the run up, and that would attribute to the recent pps decline. That would also mean that a significant seller has dumped most or a majority of their 64 million shares and accumulation can begin for the strong hands to the upside.
JMO
Not sure. I think picking a potential price is a fools game, especially in penny stock where there is significant manipulation. All I do know is that I am buying anything under .10 for the next 2 weeks before the Q1 release. I focus more on quality entry points in distressed stocks where trading sentiment can change quickly, combined with high short interest. The last time I felt this strongly about a stock rebounding I bought AIG in 2008 after the financial meltdown for around $.25 share. I thought I was a "genius" when I sold it for $3/share 9 months later. Now it's over $50/share :)
I have been following SPLI and this message board for the last 2 months. Anyone who is panicking and desperately hoping for the stock to rise, or for the new ticker/name change to propel this quickly I believe is missing the point. If you TRULY believe in this company (as I do) then you should want the price to drop and the short interest to continue. WHY? simply put look at VAPE (Vape Holdings) today. The company had a press release and reported earnings of 100 K in April. Combined with the massive short interest and relative positive guidance sent this stock up over 100%. What do you think is going to happen when SPLI reports its name change/ticker change, and 1Q results that display 1.5-3 million of sales revenue? I am long many shares and I would prefer if this stock would continue its downward trend as to allow me to continue purchasing cheap shares.
As a side note Vapor groups profit margin from the 2013 audited financials is about 56%.
Vapor Corp (VPCO) profit margin is only 37%
You don't get RICH by playing it safe and waiting for the good/great news to be released, you do it by buying when everyone else is selling in fear.
all just my opinion of course.