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COG's to me would be an important measure of where the company is at. With increasing revenue's the COG's should logically begin to decrease,(as a percentage of sales) if the COG's remain the same as a percentage of sales then that could be a very bad sign. I have confidence though that was one of the reason's Dan was brought in, he had a history with Molson of cutting COG's to drive their profitability and stock price. With ECIG's revenue's it doesn't take a huge percentage of cost cutting and that all drops to the bottom line. Will be interesting to note when the 10k is released.
Anything is possible PK, but why would you think that is even probable? There is nothing out of the ordinary for new management to change accounting firms, particularly if they have a history with the company.
Sean, if the company was in such desperate straits for cash, why would they not accept a buyout offer instead of settling for financing that puts a strangle hold on the company? Surely with their revenues/assets they could have garnered an offer in a .50 cent minimum range prior to the r/s.? I don't read the posts often but it just doesn't make sense to me that they would just dilute ECIG into oblivion, TA gagged- couldn't they be structuring a deal behind the scenes?
Nice find Millstone! I have been to Russia a few times and know that electronic cigarettes have been sold in malls there for a few years now. This could be a huge market as their are many Russians per capita that smoke. Russian women are also into anything that is considered chic, hip, new. That market could be HUGE!!
Wonder if the company has put an estimate yet on revenue's for that market.
Sean, Do you agree with BJ's spreadsheet that fully diluted the market cap is still only around 132 million dollars? I would find that interesting because that is still a very low market cap for this stock IMO, extremely low. Last July I believe it was around a 500 million dollar market cap with sales not nearly where they are now? Also I have had two startups in my life both in the manufacturing sector, our annual sales went up at a rate of 40 percent a year, there was no way that we could support our growth from our receivables. We were constantly borrowing money until about 7 years later when our growth leveled out and then we became very profitable. Some of our loans were not perfect in the growth period, much higher interest rate then what of course was the going rate, at one point I even put up my house as collateral to get a loan on a piece of equipment.
I guess what I am saying through this rambling that I can understand how ECIG would have to do what they needed to survive during this growth period. Anyone looking at this without bias has to be amazed at the phenomenal growth they have had, and the potential of long term sales. JMO
Got to run, late for work. GL ALL
Agree Be and probably is a combination of MM manipulation, shorting, and dilution. If it is dilution and their financials look much better as a result, then the dilution is only a temporary pain and the longer term trade off is worth it.
Off to work, good luck longs! Really don't think we will see much in the way of positive until the 10k is released. I will only casually look at the day to day price until then, and follow the board. Reading all these negative posts are only meant to put doubt in long's minds and for awhile at least the MM's and naysayers are in the driver's seat.
I have Scottrade as well and haven't even looked to see if the shares are transferred into my account yet. I know they will be in the next few days. I knew going into the R/S that there was going to be a rough patch, my choice was to hold through it. Also looking at ECIG as a long term play, it is a work in progress.
I understand why the pps is not a big concern to management at this time, they have more critical things to be concerned about with the bigger picture including restructuring the balance sheet. There is plenty of value here, and more impressive to me is 3-5 year potential of this stock.
Also I have weathered the storm of several different companies that have had difficulties, and always turned a very good profit with patience. EL_ n for example hit a low of $1.35 in 2000, two years later it was trading for over $29.00 per share. Patience, believing in management, the high growth sector, and focusing on the intrinsic value of the company will get you through. The rest is just noise.
How could they look at the 1rst quarter books 2015 when the quarter isn't even over? Without looking it up (off to work soon) wasn't the unsecured note agreed upon sometime in late February, early March? I doubt if they had any kind of complete picture for the first quarter at that time. Correct me if I am wrong.
Please provide a link where Wells Fargo shows a slowdown in ECIG sales, would like to see that.
Smart money? Please elaborate.
Regardless of your opinion nobody can dispute that ECIGs growth has been nothing short of phenomenal. If you take the time to read the filings you will see that ECIG has the opportunity to pay off the warrants by April 3rd, (long term financier waiting in the background waiting on R/S?) also that the note holders have incentives NOT to dilute the stock. Could there be? Sure there could, but even fully diluted look at the market cap, as posted only 132 million dollar cap (FULLY DILLUTED) This is a company that had a 500 million dollar cap last July with much less revenue and products.
I will put my money on the proven track record of the new management. So far very good. Hit me up in May after 1rst quarter financials and compare pps then. Anything that happens here the rest of the week is a blip on the big picture.
Sure that is a great post with a very unrealistic scenario.
Your lumping ECIG in with pink sheet stocks is flawed.
Name one pink sheet stock that generated near the revenue's that ECIG does post reverse split? ECIG is a fully reporting stock (audited financials) with revenue's estimated to be in the 150 million dollar range for 2015. So lumping ECIG in with the pink sheet stocks with little or no revenues (unaudited financials) is obviously not even close to a fair comparison.
When the dust settles ECIG will be going up several times over. 2015 will prove to be an exciting year for all longs invested here.
No this is not a pink sheet stock, the company has audited financials. Pink sheet stocks have throw a dart at a dart board financials.
OTC tomorrow but Nasdaq is right around the corner!
AS remain at 300 million they are not subject to the split, only commons were split.
Yes, I agree completely with your post, if there was naked shorting of the stock of course those shares would have to be covered prior to the reverse split. Just shorting a stock though is not any different then us longs buying a stock, just would imagine that if there was any naked shorting done it was covered well prior to the reverse split.
So the management is willing to cut their own throats at the expense of a note holder? Come on you know better then that. They are smart guys.. or maybe you have not read their prior history? Oneill turned Molson around, cut costs, improved bottom line, increased stockholder value 3x over while there and was responsible for the merger with Coors. Think he will do alright here...
Management has common shares as well, so their shares also were split, yet they have not sold any of their shares. What does that tell you?
Sorry cannot post the link but look it up in investopedia, under the topic do reverse splits affect short sellers? There is no material difference that affects a stock held by a short or a long. They will be issued the new shares just as longs will be and can continue to use them to short the stock. Naked shorting of course would be different, those shares would have to be accounted for and covered.
You already know the numbers in the 10k? Pray tell us what they are, so we will all know in advance.
Overlooking many things in your statement, for starters they have incentives for not dumping, so we are all in this together... management, note holders and common shareholders. I like the way it is structured... I know you are very concerned about us longs, keep up the good work.
Doubt if very many shorts covered today, unless of course they were naked shorting. Shorts do not have to cover during a reverse split, their shares are divided in the same manner as longs shares would be. Seems there was another 4 million shares added today.... hopefully with a good 10k/PR they will cover soon though.
It means you will have roughly 33,333 shares at 15 times what the closing price is today.
Played perfectly, IMO
We all have those times when we are adamant about something and are wrong. I admire the apostle for putting it out there and sticking to it. Playing a stock is a moving target, especially at these levels.
That is funny.. good analogy!
I don't know how many stocks I have been in where the price reacts prior to announcement of earnings. They would have one heck of a hard time proving who is doing the buying, and why.
Don't ever believe that... always there is a leak, always.
If he is they are not getting many shares freed up, think there has only been around 1.5 million traded since the r/s has shown up on finra.
If they are releasing the financials tomorrow, (granted they are good) we should start seeing a sharp rise in the price around 2 this afternoon or so. Seems that most of the stocks I have been in (that release financials after the close or pre market) leak out around that time.
MM's have had little success shaking shares loose with their wash trades. On the other hand buyers aren't hammering the ask here either, so here we sit. Waiting....
I don't believe that if ECIG was going to enact the reverse split tomorrow they would have waited until the last minute to file. Also I go back to Dan's PR, notifying stockholders prior to the reverse split with ratio's. Now firmly in the camp of no R/S until proven differently.
I know the argument against, How can they do that when the O/S are maxed out. There is obviously more here than what we are led to believe with the information we have been given. The tension mounts!
Good information Mike! Yuck don't like that 20 percent for the high end tax bracket.
I could say plenty about Obama but this is not the forum for it. LOL
Good post Toon, makes perfect sense for ECIG to do that. When I had my regional manufacturing company, we were bought out by the largest publicly held company in our industry. One of their reasons was of course to eliminate a pain in their butt, the other was to find out how we were able to grow so quickly and efficiently in the market area we serviced.
Hmm.. I will have to check on that, I have never heard of paying zero capital gains. I know that it used to be the longer that you held a stock (over the course of years) the less your capital gains were. From what I have experienced now it is more straight forward. Straight income tax if held less for one year ( in my case maximum) and then 15 percent the second year forward. Have you spoke to a CPA? Possibly they have changed the tax laws recently.
Thanks, by the way... I don't mean to sound harsh. I wish you GL on your venture's. Certainly everyone has their opinion and I am certain you are very successful with your shops. There is plenty of room in this high growth industry for all to make money regardless of how they direct their investment dollars. Best of Luck going forward.
Some of what you post is not accurate. The Capital gains taxes are only calculated on the adjusted income you would earn post r/s. So regardless of what the r/s number is the taxes would be paid only on gains, not on the amount the shares would go up to post split. If you made 15k on a 5/1 reverse split or 15k on a 10/1 reverse split capital gains taxes would remain the same. So a higher price r/s has nothing to do with the taxes that are paid. The best way to avoid paying the top end of capital gains is to hold any investment for at least a year, lowering the capital gains taxes from 39 percent to 15 percent, plus state taxes.
Since ECIG future looks bright I will hold my shares for one year minimum.
(the rest of your post is conjecture)
Seems you are very well educated, I am sure you will figure out how ecig will make money if anyone could.
Tbone made a good point with you the other day. You do realize that the board is to discuss our investment in this stock, and not to discuss mom and pop vape shops around the world. Curious why this company interests you so much when you are so certain the mom and pops will take over the world.