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Debt free within a month.
Four bagger at the very least.
Market cap is at $2m
$8m in revs this year
Bid growing ask shrinking. This is bottom.
Market is closed Monday. Fins likely to hit early Tuesday morning.
Update on The Vapor Group ($VPOR)
Fins are due within a week!
Here are the expectations:
$VPOR Q1 Expectations
Revenue: $1.5M+
Gross Profit Margin: 70%+
Net Profit: $1+
Convertible Debt < $500k
SG&A < $750k
Guidance PR: ?
Recently the company executives have locked up their preferred shares until next year. This comes just days after the board has also confirmed that there will be NO reverse split this year. This is a huge step and shareholders are taking notice. $vpor is priming for a huge run.
Prior to this, the company recently provided a guidance letter, indicating their first quarter revenues will beat last year’s, and underscoring the fact that 2014 sales beat 2013 by a staggering 125%! Regarding outlook, revenue projections based on historical performance and industry estimates suggest that this company could bring in at least $8M USD for 2015. Reaching a cash flow positive state is possible this year as well, based on their significant 80%+ gross margin on sales. Looking to the future, industry experts expect the e-cig/vaping segment to mature around 2020, at which time they could easily be generating $50M+ in revenue. One could assume that big tobacco will try to aggressively enter/consolidate the space a few years from now, and mergers/acquisitions are to be expected. If they stay on this track, $VPOR shares could easily approach $0.04-$0.06 by the end of the year as market cap adjusts back to fair value.
The recent letter also acknowledged the balance sheet, and indicated that they have reduced their debt by 68% in the past three months, and that they had $1,441,314 left as of March 31, 2015. The stated goal is to have zero convertible debt by June 30, 2015, as they are approaching a cash flow positive (profitable) state and do not need to rely on such predatory financing for growth. Conventional doors will soon open up! This balance sheet cleanup will apparently be done through payments and debt-to-equity conversions, and if it is on track there is approximately $450k in total debt left on the books. The industry and time The Vapor Group inhabits has placed them in a precarious position financially, but they have been able to grow and increase their market share, regardless of the headwinds.
At this point, the stock has been beaten into submission near par value by conversions, but it will rise again. Additional debt payments are expected in the coming weeks and strong earnings are due within a week. Anything under one penny will soon appear cheap, as the masses realize this company will soon be profitable and lean. I personally hold a core of this stock, and base my opinion on facts that have been given about the company and the industry. My one year price target is $0.05 per share.
Check it out if you haven't yet, as it is only trading at 1x revenues with peers trading at 30-50x.
Best of luck!
Update on The Vapor Group ($VPOR)
Fins are due within a week!
Here are the expectations:
$VPOR Q1 Expectations
Revenue: $1.5M+
Gross Profit Margin: 70%+
Net Profit: $1+
Convertible Debt < $500k
SG&A < $750k
Guidance PR: ?
Recently the company executives have locked up their preferred shares until next year. This comes just days after the board has also confirmed that there will be NO reverse split this year. This is a huge step and shareholders are taking notice. $vpor is priming for a huge run.
Prior to this, the company recently provided a guidance letter, indicating their first quarter revenues will beat last year’s, and underscoring the fact that 2014 sales beat 2013 by a staggering 125%! Regarding outlook, revenue projections based on historical performance and industry estimates suggest that this company could bring in at least $8M USD for 2015. Reaching a cash flow positive state is possible this year as well, based on their significant 80%+ gross margin on sales. Looking to the future, industry experts expect the e-cig/vaping segment to mature around 2020, at which time they could easily be generating $50M+ in revenue. One could assume that big tobacco will try to aggressively enter/consolidate the space a few years from now, and mergers/acquisitions are to be expected. If they stay on this track, $VPOR shares could easily approach $0.04-$0.06 by the end of the year as market cap adjusts back to fair value.
The recent letter also acknowledged the balance sheet, and indicated that they have reduced their debt by 68% in the past three months, and that they had $1,441,314 left as of March 31, 2015. The stated goal is to have zero convertible debt by June 30, 2015, as they are approaching a cash flow positive (profitable) state and do not need to rely on such predatory financing for growth. Conventional doors will soon open up! This balance sheet cleanup will apparently be done through payments and debt-to-equity conversions, and if it is on track there is approximately $450k in total debt left on the books. The industry and time The Vapor Group inhabits has placed them in a precarious position financially, but they have been able to grow and increase their market share, regardless of the headwinds.
At this point, the stock has been beaten into submission near par value by conversions, but it will rise again. Additional debt payments are expected in the coming weeks and strong earnings are due within a week. Anything under one penny will soon appear cheap, as the masses realize this company will soon be profitable and lean. I personally hold a core of this stock, and base my opinion on facts that have been given about the company and the industry. My one year price target is $0.05 per share.
Check it out if you haven't yet, as it is only trading at 1x revenues with peers trading at 30-50x.
Best of luck!
Great post!
DAVIE, FL--(NewMediaWire - May 21, 2015) - Vapor Group, Inc. (OTCQB: VPOR), (the "Company" or "Vapor Group"), today released the following letter to its shareholders from its President and CEO Dror Svorai.
Dear Shareholders:
Yesterday afternoon and again this morning, we filed two 8-K's addressing recent events that have significantly impacted the Company. The following are my comments on each of them:
2014 Financial Statement Restatement: What the 8-K filed yesterday can't express is the frustration we feel in having to revise the 10-K for calendar 2014 solely to allow for adjustments for "embedded conversion options" inside convertible promissory notes. Previously, such calculation of the future value of conversions to shares was never required; yet our new auditors (replacing our prior auditor who resigned) have required its inclusion under strict public company accounting standards. We are complying with their request and in fact, much of the associated restatement work has already been done. We expect to file the amended 10-K within the week, if not sooner. Immediately after the amended 10-K is filed, we anticipate filing within a day or two of its filing, the Quarterly Report, or 10-Q. The 10-Q had already been written and ready for filing before May 15th, but couldn't be filed until similar "embedded conversion option" adjustments were made to it. SEC procedure demands that the revised K be filed first. A company can't file a subsequent financial report unless the prior one is corrected. All that said, we expect to be current on all our reports within a short period of time.
Increase In Authorized Shares: Our Board of Directors again found itself having to approve an increase in our authorized shares. This time, however, our feeling was to increase it to such an extent that we won't have to keep going through increases again and again.
We needed to have adequate shares to conduct daily business while dealing with noteholder demands for increases in their share reserves in order to avoid default under the terms of the promissory notes.
Given the dilution driven by debt conversions which have been pushing the market price of the stock down, and the related, non-stop repeated calls by these same noteholders for increases in share reserves against their future conversions, the Board moved to put enough shares into treasury to cover constant noteholder reserve demands while avoiding the risk of default for not having adequate reserves set aside. Generally, these share reserve requirements are onerous. They put in reserve a quantity of shares that often assumes a share price over time of 15-20% of the market price of the stock. In other words, they assume continued downward pressure on the market price of the stock.
We publicly stated that we would not do a reverse stock split in 2015, and we will honor that commitment. Had the Board decided to reverse the stock, the increase in the authorized wouldn't have been necessary, but we believe that our shareholders would be penalized by its outcome, and decided not to do it. Part of the effect of not doing the reverse is having to increase the treasury stock.
We Continue To Grow: The above issues aside, the Company in the first quarter continued to show increases in revenue, and the expansion of our product distribution, now including the bulk shipment of our proprietary e-liquids to a Chinese e-cigarette manufacturer. Domestically, we continue to expand our distribution footprint. It has been this continuous growth, and the requirement that it created for increasing amounts of investment capital, that has driven the above issues. We are here for the long term and committed to growing the company regardless of the periodic challenges that we face from time to time.
The problem was with the future value of CD not the principal so it's likely to have been off by 5-10% one way or the other.
Someone else tell me if my deductive reasoning isn't making sense...?
We are talking in circles now.
Because I have common sense. Preferred is given. OS is 3.1 to 3.6 at least. That leaves the rest as a reserve for conversion. In the letter they said they need 5-6x more than necessary and that they raised it to where they wouldn't have to again. So assume a cushion. It's all there.
There is no way there's more than 500k left to convert. Use your heads people.
No I am not. They're doing things right.
It would take outstanding shares off the market and retire them from the AS.
Read my post about the AS.
We are at the lower bollie. Will revert back to the middle at 12 and might even shoot past it to 13-14. Calling a close at 12. Panic buying follows panic selling. Fins next week and debt free in 3-4. Payment in between. The firework show is about to start.
Read my breakdown of the AS.
Your out of your mind. You think 300M shares will be SOLD today?
Thanks. Using common sense.
Let's spend some time analyzing the recent events to possibly reconcile where we are with debt.
Firstly the new OS is 8B from one of the 8k's. Great! We know from the preferred shares that they must hold 1.8B in treasury on top of current OS. This comes from 1M preferred shares x value of 1800 common. These are locked up, mind you.
Assuming current OS is about 3.6B... We can account for 5.4B shares.
Let's assume 750M is a strategic cushion for when it's all said and done... So that's 6.15B... Leaving 1.85B in conversion reserves. Some will convert and most of it wont. Dror said that typically these reserves are set by the lenders with the assumption that market price will be at 15-20% of what it is currently. So they only need 1/5 of whatever they're saying they need in practice.
That means that realistically they only need about 275-375M shares to convert. At .001 this adds up to $275k-$375k in debt left....
The numbers are there... Just have to piece it together. Thinking debt free will occur around 4B OS and the AS will eventually be dropped to between 6B and 7B.
Trading at 1x sales of $8m at 4B shares is still .002. And we are at .0009 now???
That's a 100%+ gain guaranteed from this level.
Do
Not
Be
Fooled
All retail panic. No dilution. The bounce today is going to be sick.
Did anyone realize the NO R/S and the preferred share lockup were the first steps that were taken after the new accountant took over? The AS honestly should have been this high since they raised it the first time. Even with only 3B expected to be outstanding the AS should have been at least 6B. Prior accountant was just stair stepping instead of looking at the big picture and I'm sure that's what got him canned. Debt is almost gone, revenues are growing and we should end up under 4B OS when it's all said and done. Not the time to sell....
Not a problem. I'm in at .001. Will go back to a penny easily. Fins in less than a week.
TD Ameritrade
This will end the week at .0012
My brokerage account doesn't allow me to place orders under .001 so I will stay objective.
Market cap is ridiculously low and this will correct. If you sold at this level you only have yourself and the emotional bandits on this board to blame - not the company.
From Dror's letter yesterday...
"We Continue To Grow: The above issues aside, the Company in the first quarter continued to show increases in revenue, and the expansion of our product distribution, now including the bulk shipment of our proprietary e-liquids to a Chinese e-cigarette manufacturer. Domestically, we continue to expand our distribution footprint. It has been this continuous growth, and the requirement that it created for increasing amounts of investment capital, that has driven the above issues. We are here for the long term and committed to growing the company regardless of the periodic challenges that we face from time to time."
Holding my core long.
Best of Luck!
When you have nothing, you have nothing to lose doc.
Do it
No dilution yet today
Well now the whole company is worth two quarters of revs. Lolllll
Loading wall about to get blown out.
And the new AS is gonna be used to buy $tsla out. New battery mods.
Accounting error. Vpor was debt free last year.
Fact that they need a bigger better accountant is indicative of growth IMO
School is great! All is well.
I bought the fear. My position has greatly improved.