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The writers on SA aren't necessarily related in any way, other than posting to SA. They both have their own agendas.
On the limited text I read, it seems like VPCO got the $1.25mil and will get the $3.5mil upon closure of the merger. But they will only get the 20-25 mil based on future performance milestones. So currently the 3.5 mil is in the air until the deal closes(which is not guaranteed, based on the IVG flub)and the 20 is just a dream, right now. I am stading on the sidelines for now.
content.stockpr.com/sec/0001571049-14-005922/0001571049-14-005922.pdf
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content.stockpr.com/sec/0001571049-14-005923/0001571049-14-005923.pdf[/url][tag]http://content.stockpr.com/sec/0001571049-14-005923/0001571049-14-005923.pdf[/tag]
I have not read the Term sheet yet, but I will at some point, so I can't give great insight just yet. I sold out for the time being at $2.46 and $2.27, as I feared a big drop in the short term from this most recent news; it appears I made the right choice. My urgency in reading the documents is usually high, but since I dumped my shares I haven't been as urgent about it this time. As for your bullet points:
1. I believe it does mean the combined company.
2. There are at least 2-3 Billionaire investors (Phillip Frost, Michael Brauser, and Barry Honig; perhaps others) that would do the financing. As for the terms of performance, that remains to be settled on, as there are further negotiations before the close of this merger.
3.I beleieve ther could be a chance, (based on very little investigation). But currently, the risk/reward is not good enough for me, until I either see some numbers that I like, or I do more research. But for the time being, I am on the sideline. I will let you know if/when I read the term sheet, but you should really read it yourself as well.
They are building stores and Kiosks. Kiosks are much cheaper, and I imagine that number includes a lot of those. Also, they plan on it, doesn't mean it will happen.
What I quickly dug up
Regarding this recent news, I am saddened and conflicted in my future outlook for the company. I wasn't expecting a complete turn around this quarter, but I did expect improvement over last quarter. To see these preliminary numbers is very shocking, as I can't see how they got squeezed so damn hard this quarter.
On the other hand, we have this acquisition to think about. At first glance, the numbers seem like VPCO is getting hosed on the deal, but show potential bright spots. VAPO is a tiny pink sheet stock right now, but so was VPCO not long ago, so I won't count them out for that. They only recently started generating revenues this year. Their sales have increased significantly quarter over quarter, however the numbers are still small and they are still running fairly high net losses. What the acquisition appears to have going for it is:
for one, there is a small 4 store chain that comes with the deal, and I imagine the plan is to expand upon this retail chain.
But more importantly, Phillip Frost is a 10%+ shareholder in VAPO. Frost is a self made Billionaire, Doctor, Investor, and Inventor. Based on my quick research, VAPO is operating out of the same building as Frost's Main company Opko, which is a medical technology company, specializing in diagnostic equipment. Being that VAPO operates in the same building, I assume that means Frost will be very involved in the day to day of the company. I am curious if there is some sort of medical play or push with vapes in the future? Frost also has a very good track record with his investments, as that is where the majority of his wealth comes from. Although OPKO has grown Revenue nearly 100% year over year since 2011, they are still incurring net losses due to High operational and R&D costs, so their future is yet unknown; but such is the case with most unestablished medical companies.
One very important fact to note is, Frost has shown himself to be a huge insider buyer with his own company. I used to follow OPKO somewhat closely, and Frost for a while was buying tens of thousands of shares Daily. During this time I watched the price go from just over $2 to around $7-8. The stock later peaked at $11-12 and has since leveled out in the $8-9 range.
So I am curious to see what type of involvement and plans Frost has for VAPO and potentially VPCO. Will he end up buying a lot of the float and drive the price up? Will we see a medical play? and are his expertise and investor/business savvy enough to bring VPCO out of the dumps?
So Based on these facts I am conflicted. Terrible quarterly results vs the potential that comes with this merger. My hand was shaken today reading the financials, but I can't help but wonder if this is indeed a great move for both companies involved in the merger. Dilemmas.... What do you guys think?
it hit a high of $3.04 during after hours trading. So he was half right.
the past week has shown the start of a trend reversal. Even with "The Streets" bashing article today, it still rose.
Sweet, we won an award, we are famous guys!
I just started having Vapor-X banner Ads pop up around the web, so we know they are starting to do some targeted online advertising. I am sure I am a prime candidate because I google this shit so much, but other people who search for vapes should start seeing these ads as well; or at least I would hope so.
Personally I am dumbfounded at the movement of this stock, it defies everything I have ever experienced during my time trading stocks. I have just kept adding, as my gut tells me this is a giant fluke. With the loan going through, stores and jobs opening up, as well as banner ads appearing, new branding and focus on Vapor-X products, participation in events and so on, this thing can't realistically be priced how it is. This is having price action like a company declaring bankruptcy, and they still have millions in cash to work with. I have consistently followed my gut and come out on top with my trades in VPCO, and I plan on keeping it that way.
Maybe out of the ordinary, but they used to be a completely unknown otc stock. They are NASDAQ now and have improved their reporting timeline. 45 days after the quarter is the deadline for reporting, so at the very worst they will report Nov 15th (unless they file for an extension, which I doubt will happen) I imagine they will report earlier than Nov 15th, as their overall reporting has gotten earlier since they got more recognition.
Not to mention VPCO clearly discussed a Store-in-Store plan a while back. To store-like Kiosks to be opened within current retail stores. I can't recall exactly when they talked about it though, but it was a while ago. It just takes time to hire, build, set up channels ect. people are too impatient and short sited. They see a couple bad numbers over a 3-month period and think the end is around the corner.
I used this drop as an opportunity (albeit a stressful one), as I have every other time in the past, when the price got severely depressed. Every time I came out on top, selling for much more than I paid for. Over 4k in realized green realized gains, and less than 200 in red Realized losses; not counting of course my strategic wash sales along the way, in which I accumulated more shares without spending extra money. Sell 300 of my shares at 1.60, buy them back at 1.50, except now I have 310-315 shares. Rinse and repeat. 10 shares here 30 there, and before you know it you have grown a tidy sum with ZERO capital added. Sure, every now and than you mistime it and lose a bit, but over time you can end far more up than down, if you are smart!
They have more than $1 Million. That loan is supplementing what they already have. And I think this money, is probably to pay salary to the new employee and to start setting up the stores.
That's weird, cause when I looked at Nasdaq's website, it didn't show any trades.
There was no after hours trading, that is just the bid price.
It defies all logic and evidence. I can find absolutely nothing to warrant this continued downtrend. I have mulled over earnings, balance sheet, cash flows etc; there is nothing that I can find. Either it is a complete fluke and will have a monstrous rebound, or something criminal is going on and we are fucked.
It was barely a mention =/
The bid/ask during non-trading hours is never really correct. Tradeking and MSN Money, shows a bid ask of $1.81/$2.12. Nasdaq.com has it as n/a. If you watch the bid/ask, you see the spread jump after trading closes and shrink as soon as the market opens. I don't know the exact reason for why it does this, but I assure you there are people willing to pay more than $0.21 currently, so don't freak out.
I don't think they sold 270k shares, I believe that is all they have left. All the recent volume and price drop was from them selling out 80% of their position.
The document stated
This is not a 2-3 year low. January 2013, the price was $0.20 or $1 post RS, we are up 90% from that. it would have to drop to under $1 to be at a 2-3 year low.
Who knows at this point. I continue to be shocked every time it drops further. I Think it just broke its strong support, and many of the rough and tumble long, are finally giving in. I personally have continued to load, and have brought my avg from over $7 to $4.12, while increasing my share count. I look at the facts and data, and can not see a reason for this massive slump. In hindsight, I see why it fell from its highs, but this has no justification.
I don't see the shake charger as a big sell point. I had a simple led flashlight with that feature, and it takes a lot of shaking to get a good charge. Vapes use much more power than the small LED did, not to mention, it need a big heavy magnet, and would make the vape way to bulky and heavy. The fingerprint could be a nice feature, but moreso I think the whole social app and sharing could be a bigger success. An app to track and share vaping habits. A store built right into the app, perhaps? Making deals with various established companies for, branded flavors; Coca Cola, jolly Ranchers, and who knows what else. The app could have a feature that helps people track there progress of quitting smoking, where you earn badges. Offer coupons and promotions right through the app. Tie in sponsorship deals with events and so forth. There are many possibilities, and I feel they probably have similar ideas in the works. I am sure Kavanaugh will show his worth in time. Imagine co-branded advertising for movies, like they so with other combination ads.
The idea here is that the growth will come from expanding the customer base. Even though the cost is much less than tobacco, we we convert at least half the tobacco market to vaping, that is still a tremendous amount of money, even at the lower cost. Not to mention that even people that didn't smoke, may vape. So there could be a chance to grow the vape market larger than the tobacco market. And the MJ market can even add upon that. SO there is tons of potential, they just need to execute.
Not for a while, ECIG is way overvalued. To be realistically valued that high, we would need to see revs increase by like 600%, in my opinion. $30 a shared would be a 3000% gain from over a 1.5 years ago, so don't hope for that kind of share price anytime soon, if ever. I still can see us getting back to the highs we saw before, in time.
Yes it does. It was $0.20 about 1.5 years ago, which equates to $1 after the reverse split. it rode up to $10, so 1000%, which obviously was too much, now it has fallen quite a lot, and today it is still about 89% up since back then. so for every Dollar over $1, that is 100% gain over from the time period I am talking about.
Down 80% from the high, but it is still up 120% over the past 1.5 years.
I am still in the game. I was at about $7 avg right before the first bad quarter, and had something like 1300-1400 shares. Since then, with some strategic trades and a bit more money added, I am sitting at 1647 shares with an avg of $4.37. I plan to keep doing this until I have more shares and am almost even on price. I have recommended you try something like this in the past to help you average down without having to keep loading money. If you play it smart you should be able to get more shares and avg down without putting any money in. Sell a chunk on a big run up day, because often the next day corrects, and you buy all that back plus more. You aren't suffering actual losses even though you are selling below your average; this is called a wash sale. You haven't lost any money until you actually sell out for good, at a loss.
I have sold $4k+ in realized gains and only lost about $170 in realized losses. Sure am I down about $4k right now, share price wise, but I haven't lost anything until I sell out for good. I have been down thousands in the past on this stock, but just played it smart, made some well timed trades and rode it back to sell in the green; I have done this multiple times and plan on doing it again.
So I suggest, next time it pops 10-15%, sell a chunk, and wait for for a 5% drop and buy back more than you sold. more shares/lower avg. Sure, you run the risk of missing out if it keeps running up, but that is a risk you have to take. You are already this far down, you gotta take some risks to dig yourself out. I plan on making it out even or in the green.
um, no?
If a stock drops below $1 it can be de-listed, but usually the company will have a grace period to restore the stock above $1 so that doesn't happen. Often times companies will reverse split to prevent a de-listing. I highly highly doubt that we are at risk of this, with VPCO.
There is a Stock, I believe it is German, with the Symbol IVG, but it is completely unrelated. That stock, was acquired, but I have no idea how much it had gone up before that. Perhaps this guy is just uninformed and confused the two companies.
no......
it is possible he had a hand in getting them to sponsor those festivals and music events. Perhaps he even had his hand in setting up the IVG merger, but it is hard to say.
This drop isn't very reminiscent of previous drops before news/earnings. It has been hovering in this area for a while. Previous drops were big drops, and I doubt there are many more people willing to drop the price much lower. As for who is selling, there could be any number of reasons: Naked Short sales, someone cashes out cause they need the money, stop loss, they aren't confident about tomorrow, who knows rly.
Last time I had estimates and financials, and did the math, I had them pegged at about 3-5% but that was a while ago, so I have no idea anymore, but I imagine it could be similar. It may sound small, but a few % points of a multi billion market is pretty decent.
Not sure what your entry point was when it was in the pennies. But right now it is at 80¢ pre RS. I am still up real gains in the thousands from my early purchases and smart trading. I have been down thousands in unrealized losses, multiple times. The key is not selling when your are down. I have probably sold 4k for gains, and only a couple hundred for losses. Just gotta play it smart.
VPCO has had the worst PR ever since I started following them years ago. It is annoying, but not out of the ordinary. They are in the midst of an acquisition, and probably can't say much about it in the meantime. And there rly isn't any other news besides that, currently.
Last I checked, VPCO had $26mil in revs in 2013, with $800k in profits. And ECIG had $3mil in revs with $20Mil in losses. ECIG had an $85 MILLION loss last quarter, VPCO had a $1.4 Mil loss. I don't see how you think ECIG is winning... who knows though. ECIG also still barely has any volume.
It was a 1-5 RS not 1-7
Prices always vary from country to country. It won't effect anything, as you can see that only 40 shares were traded, and the avg shares traded is 22.