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.
I'm not a vaper either, but it just makes business sense to me. The business model is to sell juice. Who really cares who's vape pen it is? In FIN's case, the vape pen is a one time purchase of $20, followed by repeated purchases of juice (not sure of price, but certain it works out to many multiples of the pen cost over the long term). I'm also assuming the pen (like most electronics) has a very low profit margin, whereas the juice is mostly profit.
As long as ECIG juice can become FDA approved fast, I think there will be a solid opportunity to expand if / when the FDA regulations come into place.
The FDA is by far the biggest hurdle, and the only other major expense I can see, is that ECIG might have to redesign the packaging so it's not brand specific, and probably do a little research so they can advertise on their juice what the optimum / recommended vape specs are to use the juice (wattage, voltage etc..).
I see what you're saying, but further to the juice point, do you think it's possible for ECIG to ramp up their juices when the crackdown happens, and start marketing them for any vaporizer? The real revenue is with the repeat buys of the juice anyways, and it would help supplement revenue while the fin and vapestick products are going through approval process.
I would imagine its also possible that Dan having come from Molson, would possibly have some contacts at the FDA and maybe fast track our approvals to the head of the line.
I wasn't all that concerned. Mainly because the vast majority of ECIG revenues are outside of the US as others have said, but also because in a recent NR, they stated that all of ECIG juices are produced in the US in an already FDA regulated facility. Maybe I read it wrong, but I took that to mean that there would be minimal impact to us if FDA proceeds with the grandfather clause.
I'm not saying that anything govt or the FDA does makes sense, but one could reasonably assume that if the FDA is already monitoring the production of ECIG products, it stands to reason that it should be a relatively quick and painless process compared to mom and pop shops doing their own thing, or other companies producing in China. Am I mistaken?
In fact it makes me wonder if the bill passing would create a vaccuum period where there is a lack of acceptable manufacturers permitted to sell, and ECIG already being FDA regulated could step in to fill the gaps quicker than others might.
Am I mistaken?
Dan also mentioned that he said more in the conference call than the lawyer probably wanted him to say lol. I was wondering if that had something to do with him actually naming regions such as New Jersey, Vancouver, "A couple countries in Europe". That could have just possibly tipped off the manipulators that he's on to them, and maybe has an idea of who specifically they are.
As a novice investor, i'm just not exactly sure how that works. Didn't they basically issue the warrants almost as a sign of good faith? The company still has to pay both the principal and interest on the loan after all.
If that is the case, how does paying off the debt eliminate warrants?
Also, if the share price is above the warrant exercise price, wouldn't I as the lender see more upside in exercising the warrants and selling for a profit rather than giving them up in exchange for paydown of debt?
Is anybody else concerned about the fact that they seem to have issued significantly more warrants than the remaining AS allows for?
I know it doesn't matter *for now*, as the share price is below the warrant exercise price, however my concern is about once the share price breaches that level.
What is the implication for the company if (theoretically speaking) every warrant is exercised and forces the company to issue more shares than it has available?
I'm not saying I know for sure. However, just a few short months ago in their Q2 ER, they had made strides towards cash flow positive, but still had a long way to go. My initial prediction was cash flow positive by Q1 2016. I hope I am pleasantly surprised.
Only if you've been a bag holder for the last 6 months or longer. For the new investor, I feel ECIG is looking better and better each day. Yes they still have tons of debt, and no they are still not cash flow positive, but there have been a number of significant positive changes over the last few months, a few of which at least should be reflected in the Q3 ER.
Your '6 months of misery' just doesn't tell the whole story.
It spiked up to $0.64 on Apr. 28th, and stayed above $0.45 for 3 days after that. It's been all downhill since then though. Someone correct me if i'm wrong but i'm pretty sure warrants had been issued by then.
Yes, I agree they must be doing well to support the expansion. It just surprised me is all. Obviously everyone is different, but I personally wrote them off as having a brand and marketing style that seemed stuck in the 90's. They would probably be one of the last brands I would personally consider if I were going to start vaping, hence the low expectations.
Having said that, i'm ecstatic to hear that they are doing well, and that ECIG is making meaningful progress in North America, and not just in the UK.
Ultimately it boils down to keeping a customer once they have tried it, and FIN obviously is doing a good job at this. They appear to have flavours that people like, and are expanding that line to attract new customers / compete with other brands with wide flavour offerings. And I would assume people also like the idea of not messing around with their own refills and that they are factory filled so you know exactly what you're putting in your lungs.
Is anyone else as surprised as I am about the success of the FIN brand? I feel that the only thing it has going for it is the affordable price as an entry point into vaping. Otherwise, from a branding and marketing standpoint it just doesn't appeal to me the same way that VIP or even Vapestick does.
When the growth strategy was proposed at the conference call last quarter, I figured it was only an amount of time before FIN was done away with and replaced entirely with Vapestick in the US.
I just put that through google translator and it says that is Bosnian for "smoke dick to develop flies". quite a creative insult. I'm sure it makes a little more sense conversationally. lol
I Agree emoney, I think it would be a great way to expand the product into a new market, and it gives the customer the feeling that they are talking to someone who really knows and cares about the products rather than the minimum wage derp behind the counter at a walmart or walgreens. One of the biggest benefits to this model is giving the customer the ability to explore the blending of different flavours to find their favorite rather than having to buy a bunch of different flavours and do it on their own.
More of a vape shop feel, because that's exactly what it is, except its for one brand only. On that note, the one brand bias might be the biggest drawback when compared to your typical vape shop who sells many different products.
The big box stores only work once you have a huge customer base who knows exactly what they want everytime, and are more interested in larger quantity for lower average price. When people are still testing the waters of the product, a hands on approach is definitely of benefit.
I hear ya MD. I may not have as much investment capital as many of the posters here, but i'm long as well and have been since before the RS.
As much as I love to believe this will skyrocket someday soon to over $1 pps, i'm tempering my enthusiasm with a little reality.
I think harry has a point, and given the price action thus far, I would be very surprised for this to spike above $0.50 in the near term and hold up there.
I regret holding on thru the RS, but have learned from my mistake, and have since averaged down to roughly $0.64. I only wish I had more $$ to throw at this and get to $0.45 or below.
At this point, if it spikes up to around $0.64 I plan on selling half of my investment at break even or small profit, and wait to reinvest it when the price falls again.
I think even with a huge Mansour deal announcement, the price will spike up on the news, but then fall again until the next quarterly report can prove that it has actually made a real difference to the balance sheet.
Thanks Harry,
You seem to have your head screwed on straight, and I appreciate your insight into this stock! Despite yours not being the popular opinion, your points have some great merit. It's just a shame others have to resort to insults and hateful comments simply because they do not agree and are unable to even look at the other side of the coin.
I understand it's not a bad thing if the company needs the cash to fund ongoing operations, however the slow decline in share price began well before the announcement was made about the OS staying at approx 70mil.
If dilution was the culprit more recently, It's odd to me that there is no discernible change to the way the share price is reacting both pre and post dilution.
Would you not entertain at all, the notion that MM's are shorting and walking this down because it's easy money for them with no significant buying pressure?
Granted i'm a very novice investor compared to you, but i'm not sure I buy that selling story. Looking at historical prices there were only 5 trading days since the RS where this stock has been lower than it was today. July 7 - July 13. Between those days there was only about 2 million in volume combined. Presumably, much of that volume was selling considering humans tendency to panic sell in down times.
Based on the above, I don't see how there's all that many shares left that were purchased below today's price. Are you suggesting that people are willing to sell for a loss because they are afraid of losing just a couple more pennies in the short term?
Temporary breach of the 50 day moving avg! Lets see if we can make it back up there by end of day! Lookout 200 day moving avg, here we come :)
http://www.otcmarkets.com/stock/ECIG/filings
Sept 16, 2015 - under OTC Disclosure & News Service
This article was written Jan 1st, 2015:
http://vaping.com/news/vip-opens-blending-boutique
"VIP e-cigs are in the news again, this time with it's new “Blending Boutique” in the East London shopping center, Westfield Stratford City."
http://ecig.co/press-release/electronic-cigarettes-international-group-launches-the-first-blending-boutique-with-their-vip-brand-in-the-united-kingdom-to-surpass-over-120-shops-and-outlets-in-europe/
"GRAND RAPIDS, MICHIGAN, December 15, 2014 – Electronic Cigarettes International Group, Ltd. (OTCBB: ECIG), today announced that VIP®, one of the United Kingdom’s leading e-cigarette brands and a wholly-owned subsidiary of ECIG, opened its first dedicated ‘Blending Boutique’ located in East London, the first of its kind in the UK. The boutique debuted in Westfield Stratford City shopping centre on and adds to the number of VIP® outlets in the UK and Europe to now over 120. Designed to allow shoppers to blend their own e-liquid flavor with an on-hand expert mixologist, the luxury VIP® vaping lounge enables current smokers and e-cigarette users to try the latest technology in ‘vaping,’ an alternative to smoking. The boutique opening coincides with VIP’s new television advertising campaign in the United Kingdom, the first ever to demonstrate vaping on television."
EDIT: THIS IS OLD NEWS. PLEASE DISREGARD. Listen to Phin, not me lol
This is an excerpt from a blog entitled "go public 101"
http://gopublic101.blogspot.ca/2010/06/otcbb-vs-otcqb-what-you-need-to-know.html
"On April 5, 2010, Pink OTC created a new marketplace called the OTCQB, in an effort to assist investors in distinguishing Pink Sheet traded securities that are Fully Reporting Issuers from non-reporting issuers, while allowing recently delisted OTCBB® securities to get the
recognition that, while now trading solely on the Pink Sheets, are current with their obligations under the reporting requirements of the Exchange Act and are in good standing with the SEC with regards to these obligations.
This new OTCQB marketplace will ensure that investors know that Pink OTC has many Fully-Reporting Issuers approved for trading solely on the Pink OTC platform. In the future, as long as the issuer is listed with the Pink Sheets and is current in its reporting, it will be designated as an OTCQB security. If a company is late in its reporting requirements, it would be dropped to the designation of Pink Sheets –Current Information (see link below for Pink Sheet tier system). Once current again with the SEC, the Issuer will be moved immediately back to the OTCQB marketplace."
Someone correct me if i'm wrong, but didn't it have something to do with the reverse split? We couldn't be ECIGD and stay on the OTC-BB or something?
The markets are emotional by nature... not rational. People let their emotions control their financial actions and that is reflected in the market as a whole.
I read a book once that said "For those who have actually traded markets, a market pricing theory that left out the role and influence of human emotions would be as complete and helpful as a chicken soup recipe without the chicken."
Markets are traded by people, not robots, and people often react more on emotion than information.
Another short video article showcasing EKSO suit:
http://www.msn.com/en-ca/video/news/paralyzed-man-takes-a-walk-with-help-of-bionic-exoskeleton/vi-AAe5Fxp?ocid=iehp
Yeah as bad as my situation was I feel like I was one of the lucky ones lol.
The RS here took me up to $1.96 avg, and I've since dropped down to $0.64.
I'd like to get below $0.45, but hesitant to dump more cash into this.
I think that maybe explains the price spike this morning, and then the dip when it couldn't be sustained.
For some reason the layout of this USA site seems familiar. Maybe it was a phased out website that was repurposed?
Regardless, it still needs some significant work:
- It looks very amateurish (anyone with a free website creator can make something similar in minutes).
- It doesn't list the US retailers that will carry Vapestick, and there's no option to purchase products via the website (which has been a key part of their business model from the beginning)
- The customer service phone number is still a Grand Rapids, Michigan number. They should have a Denver number listed considering that is the new head office location.
- I tried sending the above list of issues to Vapestick using their email form on the "contact" page, and it kept telling me I had the wrong number in the captcha. I'm pretty sure I know what 4+1 equals, so there's definitely an issue there as well.
FYI - Costco also has warehouses in Canada and Mexico. Not sure how their international distribution chain works (whether Vapestick will make it outside the US thru Costco, or not).
Harrods is a higher end dept. store in the UK, just not sure of their exposure in North American markets.
WHSmith is a UK bookstore chain, much like a Indigo or Chapters I believe... Again don't think they have any North American exposure.
Never heard of the others, but don't recognize them in Canada, so must be US or UK chains.
Tesco, Wine Rack, Lundis, Budgens, Bargain Booze - anyone know of these guys?
Big day for EKSO! People must have really liked the financials:
http://finance.yahoo.com/q/is?s=ekso
Let's hope it holds!
Not good, not bad either. Consider whats happening with the economy right now. The Dow is at it's lowest point in 6 years. I'm thinking people have bigger fish to fry right now than worry about ECIG.
Conversely, it's a good sign that we've maintained the PPS. It means nobody is panic selling or stressing about this stock.
ECIG is a company getting back on it's feet from a near deathblow, and will just continue business as usual.
Correct. It would surprise me if Dan had anything to do with marijuana on his radar right now. He's gotta get the core business back in fighting shape before branching out like that. Maybe being located in Denver would make a transition like that easier, but I don't think it should be a priority in the next few years.
Here's the transcript of Keith's article for those that don't want to sign up for emails:
Ekso Bionics Holdings Inc. (OTC: EKSO) stock, our first Human Augmentation recommendation, has drifted lower in recent trading to around $1.15 a share, causing many investors to wonder if the company's "okay."
In a word, yes.
The business case is stronger than ever. The company continues to hit many of the milestones I laid out for you as being essential to building the proper base for a successful future even as key competitors, including ReWalk Robotics (NASDAQ: RWLK) and Cyberdyne Inc. (FRA: 8C4), have delivered double digit losses of 69% and 16%, respectively, over the same time frame.
esko bionicsI know that's hard to imagine given that the stock hasn't taken off yet, but to paraphrase David Carradine's character in the 1972 television series, "Kung Fu," "have patience, grasshopper."
Ekso stock is far more stable than the competition and still has the potential to dominate an industry that will grow by 12,627%, from $16.5 million in 2014 to $2.1 billion by 2021, a short six years from now.
Today we're going to talk about why and, as usual, what it means for your money – including a new development that speaks volumes about why my predictions may ultimately prove conservative.
Here's why I'm still projecting gains of more than 2,000% in a few years' time for Ekso Bionics.
EKSO Bionics Is Crushing Rivals in a Three-Front War in Its Industry
Last April, Winter Green Research released a report projecting the exoskeleton market to skyrocket from $16.5 million in 2014 to $2.1 billion by 2021. Chances are, you can do the math just like I can… that's a market smashing 12,627% expansion running at a compound annual growth rate of approximately 177%.
You simply don't see this kind of potential very often which is, of course, why we're focused on it.
Now most people hear those numbers and immediately think there will be room for a lot of players down the line. So there's no urgency when it comes to investing… they can always invest later, goes the thinking.
In reality though, the first players in – those with the right combination of products and the marketing savvy needed to gain an early lead and keep it – will be the winners. This isn't the Internet or a technology company that can literally be replaced at the click of a mouse.
EKSO's suits are medical devices with complicated financial linkages to insurance companies, medical treatments and, most importantly, patients that cannot be replaced at will. That means every dollar gained is not just revenue but, rather, a dollar the competition has lost. Perhaps permanently.
This is a distinction most investors miss because their emotions get the better of them. Many times they run out of patience long before the stock they're interested in has had the time to build up the profits that ultimately propel it skyward.
I bring this up because EKSO's latest earnings report (released Aug. 11) was fabulous…
Total revenue increased 75% year over year, from $1.2 million in Q2 2014 to $2.1 million last quarter. Those are obviously still small numbers, but they highlight the potential to get much larger.
What's interesting about this is that medical device revenue rose 52% while engineering services revenue grew by 110%. This means the numbers are broad-based and far more sustainable than those of EKSO's narrowly defined competitors.
For example, the exoskeleton industry has a 40% market penetration among the 77 spinal cord treatment facilities that are accredited by the Committee of Accreditation of Rehabilitation Facilities in America. That means that the industry is only satisfying 40% of the potential demand for its product, signaling great growth ahead.
Yet, Ekso Bionics' estimated market share in that area is 60% and growing, meaning it's achieved a dominant hold on a sector that has the potential to grow 150% over the next few years.
EKSO's seizing the initiative in other areas, too. Notably, Ekso Bionics has already provided 11 exoskeletons for the Veterans Administration, where the industry has an estimated 17% market penetration and the company controls a 65% market share, according to CEO Nathan Harding. This suggests that VA-related demand can potentially grow by fourfold or more in short order.
While we're at it, don't forget that EKSO also enjoys another huge, military-related growth opportunity that competitors don't – a lucrative series of military defense contracts related to the development of battle-ready exoskeletons intended to augment fighting capacity. Unlike many defense contractors that give up everything to work with the military, EKSO has retained key intellectual property rights that – you guessed it – translate directly into their medical and commercial product development.
Meanwhile, the company continues to make inroads with clients seeking its suits for industrial purposes. Its industrial-use exoskeleton, nicknamed "The Works," has yet to be mass-produced, but is already being championed by the multibillion-dollar German prosthetics company Ottobock as a quick and cost-effective means of easing workers' burdens and dramatically improving their efficiency.
"The Works" suit is a key demographics play because it will become vital in a world where construction will see a 70% boom by 2025, according to Oxford Economics, yet the number of employees in the construction industry over 60 is growing faster than any other age group.
All of that is fantastic, of course, but I told you there was a really compelling new development, and I'd like to share that with you now.
EKSO Bionics Is Building a Chokehold in Markets Its Competitors Don't Even Seem to Understand
The exoskeleton industry has a mere 0.5% market penetration in the 4,000 acute care hospitals treating spinal cord injury and stroke, of which EKSO holds close to two-thirds of the market share, according to Harding's estimates.
This is an enormously bullish statistic that most investors have missed completely for two reasons.
First, Harding's comment about the miniscule market penetration shows EKSO's leadership is keenly aware of the opportunity in a market that can grow 200-fold, even as EKSO's rivals are apparently in the dark. Second, the 66% market share means that EKSO has a particularly strong incentive to market exoskeletons as a part of helping spinal trauma and stroke treatment centers to reach their full potential.
Already, the company has sent teams of marketers and brand ambassadors to hospitals and influential research centers to Europe and the United States, visiting prestigious medical facilities like the Rehab Institute of Chicago, the Hornbaek Center of Glostrup Hospital in Denmark, and the Villa Beretta in Italy, to name just a few.
"These are strong data points that provide clarity on where to focus," said Mr. Harding, in what may prove to be the understatement of the industry. "When we broaden the market to include stroke victims, we see a very unpenetrated market. A high market share and repeat buyers – that's the opportunity."
It's not just an opportunity, but the opportunity, and EKSO seems to be the only human augmentation company that shows any seriousness in targeting it. ReWalk's CEO Larry Jasinski made no mention of it in his company's Aug. 6 earnings conference, though I had to smile when he boasted that 38 veterans are "waiting to pursue a system within the VA, once the VA is prepared to train users and supply systems." In other words, investors can hope for positive results, if and when bureaucracy gives ReWalk its blessing!
By contrast, EKSO's suits are already being used by the VA and other institutions in sectors that will see skyrocketing demand for their products. This gives the company a true first-mover advantage – something we talk about all the time.
It's no wonder that EKSO grew revenue at a pace that was more than three times faster than ReWalk's progress over the same time frame. If anything, I'm surprised it wasn't more.
Small Cap, High Reward
So how does that reconcile with the fact that the company's stock hasn't taken off yet?
That's a fair question, and one I get all the time.
There are three thoughts here.
First, EKSO is a micro-cap company, with a market capitalization of $102 million. That means by its very definition, it's going to be volatile, simply because the company has to build critical support and then tap into its potential. It can't work the other way around, so don't expect an immediate takeoff.
Second, EKSO's also an early stage growth company. That means it's still going to be money-hungry, so things like warrants and shelf offerings like the one EKSO filed in January are par for the course. At this stage of the game, management wants to be flexible because that gives them the broadest variety of options going forward. If I saw a CEO who wasn't flexible and a CFO who didn't support that, I'd recommend you exit this company in a New York minute.
And, third, EKSO's a products-driven company with significant intellectual property. That means there's a chicken and egg scenario here. You can't just hatch a fully matured billion-dollar valuation based on potential like you could with a Facebook-type offering, for example. There are real protocols that have to be followed in accordance with the medical and industrial complex. But, once again, those are significant competitive barriers when they're in place.
Case in point, each of the following companies are worth billions, yet:
Tesla had to build its first car…
Apple had to build its first computer…
Baxter had to create its first IV solution…
…once.
EKSO Is Not for You If…
You may think this is a strange way to wind up a column on a company with fabulous upside, and I'll give you that… it is.
Here's the thing.
Most investors think that the biggest risk to their financial future is picking the wrong stocks. So they get all wound up over a few percentage points here and there.
In reality, the vast majority fail because they lose patience or they commit too much money to a given trade. Sometimes both.
To get around these problems, I recommend that you check with your financial professional to make sure EKSO matches your personal risk tolerance and expectations.
If it does, limit EKSO to 2% of your investable capital and not a penny more. That way you're not going to blow up your portfolio if EKSO cannot produce the upside I believe it can. If it doesn't, then no harm no foul.
There are literally thousands of great profit plays out there and we'll cover the very best right here… together.
Keith Fitz-Gerald from Money Map Press just posted another article about EKSO a few days ago...
http://moneymorning.com/2015/08/21/im-still-bullish-on-ekso-bionics-stock-heres-why/
Are you sure this isn't just MM trades? They don't have to post any transactions until the end of day if they so choose.
why does ihub say this is up by 3 cents today? (9.68% up)
anything interesting to report on L2? I dont have L2 but to me it looks like there's been almost no trading, and no movement in stock price.
Is it possible that there's still no retail investor interest, but MM's could be covering due to recent news and not reporting until EOD?
That's great news for ecigs in general, and fantastic that this article was endorsed by Public Health England, and released in a high profile publication... but even better than that is the journalists name!
I mean come on... that's probably the best name i've heard in awhile! Tripp Mickle. lol makes me laugh just saying it!
The biggest difference from my point of view is the FACT that the OS stayed the same the last time this spiked up above $0.45 and ran back down into the 20's. By your theory, the reason it fell back down was because warrant holders were performing mass exodus as soon as it was feasible to. If that actually happened, the warrants would have turned into real shares that would then show as an increased OS. It was nothing more than shorters/manipulation the last time this was brought down.
If it comes back down to the 20's again, it will be the same story. shorters & manipulation.
If all that wasn't enough, I don't understand how you can't agree that it makes ZERO sense for warrant holders to exercise at $0.45 for zero profit. Given the company's past PR's stating that this is friendly financing, it's far more likely that (as others have stated) warrants will be exercised in small tranches on an as needed basis for operating cash until the company is cash flow positive.
wow... average volume over the last 3 months of almost 500,000 and we are sitting at 28,000 so far today. Seems that the market still wont trust this stock despite the balance sheet improvements.