Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
How this is playing out...
Based on what I've seen, here's my guess at what's going on. The "prior investors" are selling their shares, and borrowing your shares to (short) sell those too. This way they can make money when the price goes down, and lock in a bigger pay day (more shares) when the units separate in seven weeks with the cashless warrants. For them, it's a win-win. There's no news on the horizons, and having inside knowledge of the company's plans, my guess is that they have no fear of a short squeeze in the next seven weeks.
Even if there is some "news" between now and then, it is likely that insiders will just use this as an opportunity for more shorting. Every time we've seen an announcement- which should normally be good for shareholders- the share price has dropped. This stock has failed to sustain any gains in more than a year. It's basically been a giant dump. I wouldn't be surprised if the company somehow modifies the units to allow the prior investors to exercise their warrants and get out early as well.
Looking at their track record, this management team has been great at destroying shareholder value, which is why it's often more profitable to short any stocks they're involved with. Shorting this stock a year ago would have been quite a nice return (nearly 100%) and if looks like short interest has jumped up quite a bit in the last month as well. This suggests more pain for anyone buying into the hype. Based on all the damage done to this point, it seems are chances of a "turnaround" before the units separate gets exponentially smaller by the day.
Just my two cents.
:) Me too.
*modify the units
Still waiting on what? Their next move is going to be to modify the warrants so they can get out before everyone else. So predictable!
Yep. These guys are very predictable. Always have been. Look at the charts! Shorts have made a killing on this stock. They keep it low so it's harder to short, but their tricks don't work on me...
GBSN had similarly structured units. Their stock dropped from a few dollars to the current price of six cents. Looks to me like management is keeping the price depressed so insiders get more shares from the warrants, and as such, this would seem to be an interesting short candidate- even at this price. Everything Brauser and Honig touch appears to get wiped out. If more people shorted rather than averaged down, they probably would r be able to rip so many people off, in my opinion.
Considering this stock has dropped over 90% in a year, wouldn't it make more sense to short this stock? I mean, every time you come on here showing your charts, it always seems to drop...
What happened to .50 by Friday? This sucker just can't keep gains. So much insider selling...
Honestly, I don't know. I was communicating with someone else on another board, and I have since not been able to reach this person. I don't know if that means that it isn't real, or if it's just under wraps. It's hard to know what information is real about stocks like this. It all sounded very legit and well-informed, but what do I know? Why do you care about it so much? Just curiously? I assume you're not relying on anything posted on here, because there's been lots of false information, and I presume that's how it has always is with penny stocks or with this management. The only thing I know for sure is that there's been plenty of dilution, and the stock is down over ninety percent in the last year.
Units down nearly 50%
Since the VPCOU units first came on the market at $11, they are now down to $6.10 in a little over three months. Kind of makes you wonder who participated in the initial capital raise... or was this just more junk pushed on investors? If they really have so much intrinsic value with the cashless warrants, then why is the price so low?
Proposal 3 specifically authorized the issuance of nearly 2,000,000 more shares of common stock, does it not? They approved this proposal, did they not? To me, those are the most recent shares that I had been talking about and assumed everyone else was discussing as well. These are new shares that were actually handed out and can be sold on the market. The first proposal involves amending the articles, and doesn't actually create anything more than the right to issue more shares at a later time, if necessary.
I am not trying to be rude here, so please excuse me if that's how I came off. But considering this board was recently hijacked by people claiming that an analyst rating of 2.0 was the equivalent of a $2 price target, it is easy to see where it can be frustrating. I am not rooting against this stock in any way. I am just calling it how I see it.
Your post began with "I thought it was clear the additional shares..."
Where exactly did you specify which additional shares you were referring to? I thought the discussion was primarily focused on the most recent shareholder's meeting, and why management had authorized even MORE common stock to insiders for which the company would be receiving no funds in return. This was the most recent issuance of additional shares, am I wrong? The shares you are referring to are held in the treasury I believe, and have been known and accounted for some time, although not "outstanding". I was simply trying to draw attention to the most recent dilution which was authorized at the shareholder's meeting.
Do you disagree?
Sigh. Wrong again.
Not trying to be rude, but there's just so much misinformation that it gets frustrating at times. The most recent offering authorizing the share of nearly 6,000,000 shares very clearly excludes any of the warrants included in the units.
Here is the ACTUAL LANGUAGE used by the offering:
The number of common shares to be outstanding after this offering specifically
excludes:
? 37,616,570 shares of common stock issuable upon the full conversion of our Series A Convertible Preferred Stock and up to 75,233,140 shares of common stock issuable upon the full exercise of our Series A Warrants, assuming the warrants are exercised for cash;
First of all, I wouldn't be so sure that the goal is to stay listed. Variations of this management team have ridden several companies into the pink sheets. I would be happy to provide examples.
Secondly, they have six months from the date of the delisting notice to regain compliance. That date doesn't occur until after the units have separated. By then the common stock may be worth mere pennies. Look at GBSN: in a matter of months, it went from over five dollars to under ten cents after the units separated. What happened to the $24 million that GBSN had raised when they sold the units??
I have heard some whispers of a heavy short campaign, to stick it to these guys, although I have yet to see it materialize. However, the proof is in the pudding- this stock has done nothing but go down, and insiders continue to be given shares at a much cheaper price than common shareholders after which they immediately unload them on the rest of the market. If a buyback was coming, why does this stock continue to decrease in price? Who keeps selling??
New shares most definitely don't avoid another split. In fact, more splits are just all part of the deal. I don't see what you guys don't get about it. Part of the "appeal" of penny stocks is that they can make people super rich. If you look at this stock, you might seem to think that it was once near $60 a share- except for the fact that it's a split adjusted $60 a share. In other words, people hoping to just get rich quick think their fifty cents could one day be $60 or more once vaporizers catch on, and they might one day live in a house on the beach in FL. So Vapor Co. puts out constant "good news" about their "acquisitions" (without revealing the terms of these deals, mind you) and hope that random people doing research on vapor stocks will buy into their dreams. But the truth is, this group of management never returns shareholder value... and eventually, people caught on . It's a tangled web, but they are being closely watched, I can promise you that. And I'm not talking about you or me, because I don't really care what they do, to be honest.
I am not a promoter or a basher of this stock; unlike many of the pumpers from the past two weeks, I am not here to manipulate the price by providing false information. In fact, since I'm not an investment advisor, don't listen to anything I say. Do your own research, and you will thank me later.
I don't know a lot, but I do know that a new CFO can't just make $41 million disappear. If this stock continues to wipe out investors, and suddenly that money is gone with very little to show for it, it will only be more ammunition in a case against management. But in the meantime, watch out for a flood of new shares that were authorized as of the last shareholder meeting. Have a hard time seeing this stock getting to "respectable" value at this point.
Can you message me privately? I don't have a subscription, and I don't plan on getting one. I do have an update on an article and investigation, but I can't talk about it here. Your mind will be BLOWN, though. Would prefer to talk over Kik if you're able.
First Bernie Madoff...
Down to .48 again. Here comes the dilution I've been telling you about. These guys just destroy all value, and it's only a matter of time until someone stops them. Lots of eyes on them now.
By the way, Ultimaratioregum... you are my favorite poster on this board. A healthy dose of skepticism is what this company needs. And if they don't manage to turn any of this "41 million dollar" capital raise into a benefit for the common shareholder, then I think these guys need to be dealt with appropriately... remember, their underwriters were associated with Bernie Madoff. These insiders are notorious for being "wipeout artists". If they keep robbing retail investors, it's only a matter of time until they end up where they belong...
I explained this all already. The structure of the units is unique; if the common stock pops, so should the units, and that's where the money's at. But if the stock drops, the units get cheaper, and you get more shares. So with a coordinated effort to move this stock up OR down, those "in the know" could do quite well, depending on when they get in or out. I didn't like the number of posters that suddenly appeared to push this stock with false information; they clearly were pumping it so insiders could shed a bunch of shares. But where are they now? It was a mini-pump, and there will be lots of dilution tomorrow. So we will see who gets the last laugh... but in my experience, it will be the insiders, while retailers get stuck holding the bag.
All of my information is from a tight circle of investors that I speak with. I cannot control them, nor am I responsible for the information that comes from them. As I have now exited my short position, I have no agenda here, other than to hold management accountable. This stock has done nothing but go down, and I hope that retail investors that come here for information are aware of the risks that come with investing in companies like this. Many people have lost lots of money on companies running under variations of this management, and the SEC has seemed incapable of catching up with them, despite numerous civil lawsuits. I hope that nobody loses too much with this company, but I am not here to knock this company as long as it is creating some sort of shareholder value. But like I've said before, if this thing keeps going down, expect to keep hearing from me.
The infamous article
Can't wait for it. Sometime this week, I expect, assuming price stays around here until October 15th. After the shareholders meeting it will go down even more after they give away a lot more shares for nothing. My track record on this "company" has been spotless. Time to take all proceeds and short IDI is what my friends are telling me... lots of money to be made there. These stocks NEVER GO UP. I've been telling you guys all along... hopefully now you guys will listen. High volume last week was caused by a small pump so insiders could get rid of shares before they dilute even more next week.
Who knows? Doesn't it seem surprising that this company could raise that kind of money with this kind of track record? Where did it come from? And where is it going? So far I've seen that three new stores have purchased... but it's been over a month with no new news. Doesn't it seem odd that nobody knows who the real investors are behind this company? Where did $41 million come from?
What pump and dump email are you referring to? Where did you get that? Good thing you got lucky and weren't holding when an article came out and exposed this entire fraud as one meant to suppress the value of common stock and not return any shareholder value.
Finally, and most importantly: who participated in the best efforts capital raise for the units? Everyone knows a company can blow through money if they choose. But how do you know they even generated this money in the first place? Shouldn't you know who those initial stakeholders are/were? Who is/was betting on this company? Someone from Dawson James knows...
If this doesn't spike in the next day or two, it looks pretty clear that the price is being held down and will continue to drop, right up to a big drop after more shares are authorized at the shareholders meeting on October 15th. I am expecting an anonymous S.A. article explaining what's happening prior to that meeting.hopefully that will be soon.
This cracks me up. Where did all these new posters go? Was anybody able to access the conference? Can you visit it on the site? It's supposed to be archived... they even filed with the S.E.C. saying so much. Can anybody link to it? Lots of sketchiness right now.
Tomorrow may be a catalyst- either up or down. Based on all the buzz on the message boards, though, I would guess up. I exited my short position, and remain on the sidelines for now based on the uncertainty surrounding this stock. My inherent instinct is to distrust many of the posters that come on to these boards, but it seems unlikely that tomorrow's news conference will bring bad news. If it does, I will be back, preaching all of the negatives that I have for sometime. If it is good news, and this stock shows positive momentum and the ability to maintain gains, I will stop bashing this stock and give credit to the "regulars" on this board (you know who you are). Good luck to all.
The units will eventually dilute the common. However, their value is partially determined by the common value as well, which makes it an interesting structure. If the common suddenly spikes, the units will probably follow, although it might take people time to catch on. But the cashless exercise feature means the more the common drops, the more shares you get. So if you know the right time to exercise them after they separate next year (assuming you don't exercise them for cash), you could not only get a lot of shares, but you could also really benefit by diluting everyone else to a higher degree. It's all a matter of timing, which you will soon see.
Wow. This board was sure hijacked, fast. Pretty funny, actually. It will be interesting to see if this keeps this up or if it gives it all back tomorrow. If it starts lower, my guess is this thing tanks. I could see it going the other way too. Lots of eyes on this now.
Don't forget, lots more shares being authorized at shareholder meeting will cause lots more dilution. Look for stock price to keep heading lower as insiders sell these shares to profit off of the company.
That ain't happening. Do they even have the 15 that they claim? Only 11 were listed on the website the last time I checked a couple days ago, and only 9 had phone numbers. Plus, have you noticed that thevapestore.com is actually run by a different company? Yep, VPCO shareholders actually are the proud owners of thevapestoreonline.com instead. If they were seriously trying to run a business, don't you think they would want people to find the website and their stores? I'd want some answers if I were a shareholder...
One more thing that will be addressed by the upcoming Seeking Alpha article to watch out for: potential manipulation by market makers. If you do a search, you can come up with several examples where VPCO gave an indication that it was manipulated to drop faster than it a normal stock should: http://www.buyins.net/releases/?id=450714
This is just one example. There are several more. Very interesting.
Have you made money from this stock? Care to share how much, or how you were able to do it? It hasn't sustained any gains for quite some time. Are you swing trading? Maybe you could make a little that way, but you would have to be pretty good at guessing, and the spread would make it even harder. If you are buying and holding, or averaging down like some, you haven't made any money. And if you aren't, are you advocating that people should only trade this and not invest?
What do you really know about the stores and the products? Have you ever been to one of these stores? Spoken with the employees? Here's a challenge: why don't you get on Google and see how many stores you can actually find phone numbers for. I bet it's less than the number of stores they claim to have. And try calling them to see if they answer and are friendly and knowledgeable about the inventory. Why not call of them? Same goes for management. Can you reach them? Will they respond to your questions or emails? Don't just believe what you read or what someone else tells you (including me). Everyone should do this sort of recon; buy because of the company, not because of the hype.
My point is this: be careful. These guys are in the business of wiping out stocks. They give themselves shares for cheap and don't even leave crumbs for shareholders. It's just a matter of time before they do it again. People just assume a stock will go up because it's low. But not here. They will bleed it until it's dry. It's obvious: just look at the history of this stock.
Stockslayr
You've been showing those charts for a while. The last time it was right before the huge drop. Charts don't apply for penny stocks. This one is being pushed down by all the insider selling. Only some sort of news will make this pop, and that's the only real threat to shorts. This day-to-day stuff? No sweat. This stock always go down. It's obvious. Look at the charts in any view you want, and all you see is down.
Will continue to drop.
Insiders are selling tons of shares. Look at the volume they've sold in September on the chart at the Nasdaq site. Every once in a while they let up to let more suckers buy in before they sell more. Huge drop coming after dilution from shareholders meeting in October. And just look at the movement in general: this thing goes up a little and then down even more. Total pattern. Totally predictable.
No, I am not writing the article, but maybe if I'm lucky, I can catch a peak at a draft. The author will likely remain anonymous as I understand it. As it was explained to me, the article will provide an in-depth look at everything from the stores themselves to the various market influencers at play in VPCO, with a focus on the structure of the units and subsequent offerings, and how this could all be part of an elaborate scheme to drive down the common in order to earn more shares for the warrants before an eventual reverse split and maybe a pump. In other words, don't assume the common will rise just because of the capital raise. Timing also is an issue for the article, as this thing could still conceivably go up, but as the shareholder meeting approaches, it becomes less likely due to more dilution. An interesting take, and one that seems the most likely based on the recent price action. Probably an interesting read either way, but really only makes sense if the price stays down. Time will tell.
New Seeking Alpha article.
Look for a new Seeking Alpha article sometime in the next week to detail how the units are structured and how it benefits those in the know if the stock price continues to decline. I'm not sure of the exact date, but look for it prior to October 15th, when even more dilution will occur at the shareholder meeting. Basically, it will provide a detailed look at management, the market makers, underwriters, investors, and everyone else involved, and explain how they have designed this thing to tank, and how it won't come back up until after the units separate. I will check back here when I have more info.
After hours manipulation
Just like my friend told me. These guys are making it seem like the stock is jumping after hours to trick people into buying so they can sell at a higher price. By ultimately driving the price down, they can redeem more shares with their warrants on the units. Don't fall for their games. Find an overseas brokerage and short as many shares as you can! That's the real way to end up a winner.