Thank you for your educated and insightful post. I agree they have been working very hard and making very smart decisions in their business, I just had a few counterpoints.
Your point about cars and gas is very true, however you must still consider, that we are essentially at the start of the Vaporizer market. Their are still literally tens if not hundreds of millions of units to be sold. Billions in revenues are floating out there for the vaporizers themselves at this point. Also vapes can break, get lost, some people may even buy multiple units of different sizes. Thick about how many bowls or bongs a pothead might accumulate. I could see something similar happen with vaporizer. So I don't think it is a situation of buying one quality vape and only buying gas going forward. Further down the road, I think vape sales will most definitely slow and ejuice will be the predominant product. I could even see it being a good idea to subsidize the vaporizers themselves like they do with phones or game consoles, and make the money back on the juice; although that comes with the risk that the customer may buy someones else's e-juice.
As for the acquisition, I don't see it as being too pricey. The initial price was purchased at 1.5x revenues, which is quite standard. The purchase was also almost entirely with stock, which means IVG has incentive to make those shares grow in value, so they can get a huge pay day. On top of that, the rest of the price has to be earned through performance. VPCO may end up paying more, but it would be paying more for a more valuable company, there by making the price completely justified.
Lastly, I completely agree that VPCO needs to stay price competitive. That has always been a little concern of mine, that they are pricing their vapes too high in some cases.
Anyhow, good luck to you in your endeavors in Kansas.
