IF I MAY HAVE A MOMENT OF YOUR TIME:
I want to begin this message with first articulating that I felt compelled to compose this post at this time, having born witness to the erosion of confidence this board seems to be enduring as a direct result of unfavorable trading in today's session. You will never see a post from me stating, "WEEEEEEEE," or, 'TIMBERRRRR." These types of posts offer nothing as far as DD, or opinions, and I consider them prattle, and idle clutter. I also see that some of the naysayers are back, yet again, with the doomsday, 'I told you so.'s." Where were these posters when the stock eclipsed .14 cents? Ridiculous.
I would also like to dispense with the declaration of my position, so as not to confuse or leave any ambiguity related to how I personally feel about ECIG. I AM ALL IN. Now that the formalities are behind us, I will agin reiterate salient points and facts to keep in mind when deciding whether to buy/sell or hold ECIG going forward. I NEVER advocate anybody taking action based upon my posts, as that is for everyone to make up their own minds, as they measure facts against innuendo, risk aversion versus going for it all and most importantly, every investor, or potential investor has to decide what they actually believe. So here we go:
When considering whether to buy or sell or hold ECIG you must first have a comprehensive understanding of what is effectuating the price volatility day after day. So again, for your consideration I put forth the following:
The reason this equity is at this price is because the CEO chose to pursue an aggressive plan of expansion for his company, solidified in the belief that to become the market leader in any business, that business must grow both organically, (through advertising, choosing alliances with other companies, and providing a superior product or products which give that business a competitive advantage over other companies vying for their customer's money), as well as rapidly, (through prudent acquisitions which will become accretive to earnings as soon as possible). The plan all along was to enable both of these growth strategies through financing, which, was not available to the company while in its embryonic stages. The fundamental lack of the company's ability to walk into a finical institution and get a $50,000,000.00 loan should not be surprising to anyone. The days of venture capital throwing millions of dollars to anyone and everyone passed over a decade ago, you might have heard about it, it was that Y2K thing. So the company is driven into the arms of these debt for equity financiers that are not interested in investing in the company, but rather milking it for outrageous terms, some would call usury, that ensure they will make millions on the short term capital they provide to these companies. The CEO, believing in his corporate strategy, took this lifeline of money, believing that the debt for equity people would never have the opportunity to convert their shares, because ECIG was going full on into the uplisting to a higher exchange mantra. That IPO was going to pay back the toxic financiers, and provide millions more in the corporate coffers to continue with their growth through acquisition philosophy. We all know the IPO failed. One can ascribe blame for this failure on myriad of reasons, but it is immaterial at this juncture. Had that IPO gone through
I would not be writing this post, 90% of the people here would not be here, and we would not have to sift through the cacophony of nonsense that is spewed here day after day. If you believe in this company, its future and its management, this is a GIFT.
I have stated here since the beginning, that if you bother to read the company filings, you would know that the debt for equity people cannot convert shares below .07, thus, WE ARE AT THE BOTTOM. Some of you will counter that with the question, then why did it dip below .07 today, and hit even .05 a couple of weeks ago? Here is your answer: It is a well known practice of these toxic financiers to partner up with entities that short a stock, leveraged against the shares the debt converters have, (the shorts cover if you will), to hammer the price down and convert many more shares due to the fact that the lower the price goes, the more shares it will take to pay that money back. Breaking the aforementioned statement into its most simplest form, if you lend a company $100,000 and the stock price is $10.00, then theoretically it would only cost the company 10,000 shares, (not factoring in fees and such), to pay back that $100,000. But, if you take that very same dollar amount, $100,000 and the company's share price is .01, then it would take the issuance of 10,000,000 shares to pay that money back. So the next logical question is, why would the debt for equity guys just not leave the pps alone and get their money back fair and square? Here in lies the crux of the issue which has befuddled thousands of investors in penny stocks for years, but as I am about to explain, is it not really a difficult proposition to understand. In 99% of penny stocks, the debt for equity people could care less about the company or its business prospects, because quite honestly, the companies they provide money to, have no business prospects. Now with ECIG, we know that is not the case. So why are we down here? There is a combination of shorting the stock, balanced as protection to the shorts, leveraged against the shares being allotted contractually to the debt holders, which in my opinion is collusionary by nature, and provides extra profits to all but the longs. On top of that nefarious activity, you have a viable business enterprise that the debt for equity guys know is the case with ECIG, so they are bracketing the price per share to accumulate, not sell, some of their positions, for the inevitable rebound coming. Another words, they are playing both sides against the middle. The temporary dips below the .07 level are immediately met with volume surges, short covering, to prop the price right back up to the magical .07 level.
Next point(s) to consider: The company's business plan and exponential growth has not changed one iota since it was $20.00 a share, but rather, it is the relentless conversions and shorting that have us at the .07 level, which hopefully from the aforementioned paragraph's explanation you now comprehend.
The company is going to be fulfilling its first quarter roll out of its contract with TDR, which will be immediately accretive to earnings, so if anything, ECIG's prospects never looked so good.
If this company was such a turd, then why does the Board of Directors read like a who's who of the business titans? Do you really believe the ex-CEO of Walmart would sit on the Board of Directors of a scam? I think not.
The simple truth of the matter when sorting through the noise and prattle spewed here day after day is this: ECIG is undergoing its binary event. When the conversions abate, the selling pressure will go away, necessitating the shorts to cover, driving the share price up. Will ECIG be $20.00 again in 2015? Highly unlikely. Is ECIG worth considerably more than .07? Without a doubt. No one here knows for sure when the conversions will stop, but common sense dictates that with each passing session we are closer to the end, then we were the day before. What will be the tip off to us regular Joes trying to time this cessation of dilution? If you accept my premise that the people converting shares are working in tandem with the people shorting the shares, then they will know when it is time to cover and go long. I have been investing since 1999, and inevitably, someone always knows something. Look for the share price to rise suddenly and without publicity on unusual volume, and then you too will know the time has come. Until then, I advise you to take a look at all publicly available information related to ECIG and make a decision, not based upon anyone's opinion, that goes for me as well, and think about the practicality of ECIG's future. I leave you with the following last thought:
No one cares more about your kids or your money than you do. If either are entrusted to others and tragedy occurs, you are likely to get a litany of excuses and I'm sorries. But neither the excuses, nor the mea culpas will bring your kids or your money back. The decision is yours and yours alone to decide. Do not allow other's agendas to influence your decision, or mitigate your personal responsibility to perform your own due diligence.
Regards,
SPORTYNORTY
