Listen, I only get 1 post per day Read if you would like…
So I have to make this count…
THIS IS ALL IMO ( IN MY OPINION )
I have said this for months. The R/S was always going to be passed. A/S was unnecessary and was thrown in there for no reason.
I will try and not use fancy words, but common sense. Some will agree some will not and that is the beauty of this board.
For the record I am long this stock. Never flipped and will not flip.
IMO this is a fairly simple and understandable scenario that has unfolded.
Bear with me as I may find myself rambling on a bit...
I remember back in December everyone complaining about the sideways trading in the $.03's-.06's. The Rah-Rah's and the Bashers back and forth everyday using it as fuel to create volume to do with as they pleased at that period in time. Everyone discussing here on iHub that the reason the company is down here is because of toxic debt and the lenders shorting this into oblivion (which is VERY true by the way).
I've said it numerous times but as more eyes come to this board, I feel my opinion adds value to what many people say. Lets start from the begging shall we?
IMO
Brent Willis the CEO alongside McCormick the prior CFO ruined this company (unintentionally IMO). Why unintentionally you may ask; great question. Lets first start to understand what it takes to build a company from the ground up. Its almost like building a house. You need a product that exceeds other products whether it be in aesthetics, quality or margin ability in the market place. ECIG found theirs, they found a niche market in which they wanted to dominate. Great. They found the market. Now building a brand is a lot different then building a company, lets keep that in mind. ECIG had bigger ideas the just being the best single Electronic Cigarette brand in the world, they wanted to be the biggest Electronic Cigarette COMPANY in the world.
IMO
They set out to acquire (essentially, buy already established Electronic Cigarette brands to add to their arsenal). They now have a plethora. BUT WAIT, guess what it takes to acquire these companies. Yup, you got it baby, MULA (MONEY, DINERO) whatever it is you would like to call it. Now they had worked out a beautiful plan. Acquire all these companies (from terrible lenders, because any lender at that stage in creating a company; SUCKS) but PAY THESE LOANS BACK IMMEDIATELY TO THE LENDERS. HOW!? Well, that is where Willis' and McCormick's plan fell through. In May they had planned to pay back the acquisition through an IPO (Initial Public Offering). The IPO failed and guess who came knocking for their money? Yup, you got it, the ones who LENDED them the money to begin with. Well, now that their IPO failed and although their quarterly revenues were fantastic, it was not enough to pay back lenders. Lenders took their leverage (same as what a lean would be on a house if you didn't pay the bank for your mortgage, they would take your HOUSE). Well these lenders wanted their money back, they shorted, manipulated and broke the ECIG stock at its knees.
Yes, terrible experience. After such a gruesome story, you'd figure the white flag would be raised and all would be said in done. In the finance world, that is called Bankruptcy.
IMO
In late December we received news that two fantastic men would be joining the company. They go by the name of Dan O'Neil and Phil Anderson as new CEOs and CFOs. If your following along, then you kind of understand what happens next. McCormick gets the boot (YES WE ALL KNOW he still works for the company, making paper airplanes in the back) but he has no significant role and 0 compensation for his duties. Brent on the other hand, the face of ECIG, his die-hard passionate reasoning as to why he created a company that could inevitably help the world that way he can vicariously live through the death of his father (the 3 pack a day smoker; if you don't know the story look it up, quite sad). They can't just sit him on the bench.
IMO
Since Phil and Dan have joined several PR's have been issued in the end of December that they in fact were going to RESTRUCTURE and CLEAN UP the balance sheet of this company. Two well established, GREAT track record gentleman here to help and put their reputation on the line; WHY you may ask? And, once again if you were following along you know the answer, its a niche market with A LOT of money to be made, wait did I say A LOT…BECAUSE I MEANT A $hit LOAD of money to be made in this market; OH and guess what? They are the number one company for Electronic Cigarettes, NOT BRAND, but company folks. Oh okay. Now that we got that all squared away.
IMO
Lets talk revenues - Although we do not know Q4 of 2014 yet, we have seen (WAIT FOR IT) AN AMAZING Q over Q growth in revenue from this company. Far exceeds any other electronic cigarette brand and or company (essentially their competition). Whats holding them back from practically monopolizing this market? Yup, that silly debt they acquired when expanding. But guess what? ITS BEING RESTRUCTURED. Now I will not go on in fantasy land and give you all my wild speculative ideas but lets just say, its being taken care of. They've PR'ed explained to us that 85% of it was taken care of and now the past 2 8K's have basically stated that they have found a less 'toxic' and friendlier financier to take over debt. The terms have changed and they are ridding of all of these toxic lenders, putting them into better hands (again I would like to speculate but I will refrain).
Q4 numbers for 2014 will exceed expectations and Q1 for 2015 will just blow your socks right off your feet, again ALL IMO.
IMO
Now, as far as this R/S goes. You can look back into all my previous posts. I stand by what I said. I explained that the R/S was going to pass, without question. Why you may ask? Simple. Again, all IMO but I believe that behind the scenes once Phil and Dan got on board, their way of 'fixing' the balance sheet was simple. This is a hypothetical scenario but lets say you lent your buddy $20 and he promised to pay you back; but he never did BUT still has intentions on doing so he's just in a bit of a financial pickle. Little by little, through some quarters and some dollar bills you get your full $20's back. Other's see what your friend did to you and now your buddy builds a pretty sour reputation, he most likely won't be able to borrow money from others. Do you think you would ever lend that buddy $20 again and if you did wouldn't you want to make sure you got something as 'collateral' or leverage that makes it worthwhile or secure. That is essentially what the R/S is. The R/S allows for future lenders to feel secure in lending out their money. In the most recent 8K we had a lender basically take over the debt from a lender with UNWARRANTED notes. i won't get into the nitty gritty, but you get the picture. Better terms, better lenders, no toxicity = recipe for success. There will be NO R/S. That is the reward IMO that all REAL LONGS will receive. The ones who have weathered the storm, because no dividend will ever match up to that type of reward. The constant loading and loading. Our time will come.
IMO
All the so-called longs, anything in these prices is dirt cheap. I would suggest finding a hobby, because discussing what happens on every 20 min L2 change during a day will have you going bonkers. Most of you engage with the flippers here ALL day and you may even frustrate yourself right out of an amazing opportunity. This has been a shorter and flippers paradise for quite some time. These 8K's tell us that this is headed in a very different direction. One that will stomp that out, one that will hold gains and climb to the top.
These are my thoughts and on opinions. THIS IS ALL IMO. I have a lot more to say, but I feel like everyone should have the whole puzzle picture, not just a few small pieces. I would be happy to answer any other questions through PM's
Thank you all for reading this.
See you all on the other side :).
BE1CB
