Quote from Bonnie Herzog
"The growth in U.S sales of e-cigarettes slowed to 5 percent in the fourth quarter last year from 19 percent a year earlier".
Also in the Reuters article, States FDA wants to ban the 'open systems' which will benefit FIN.
In another article it says 7-Eleven account for 70% of all cigarette sales. I think FIN is there? Seems right that more e-cigs would be sold there than other stores in the tracked channel.
Also goes on to say there were over 3,500 untracked vape stores as of Jan 2015, with more opening.
So the above highlights:
1. ECIG has previously quoted Herzog saying the ecig market could be worth $300bn in a few years
2. They are late with their Q4 figures, presumably postponed to allow to R/S dust to settle
3. If industry trends are typical of their performance, expect a 5% increase on Q3, net of marketing spend adjustments
4. Future sales of AVS could be promising
5. They would also need to scrap old stock, writing off millions $$$
6. Vape stores are growing and growing in the untracked channel
IMO, ECIG are running scared and in a complete mess. The appeal of opportunity is blinding them and were not able to carry out their original business plan, which must have been reliant on ambitious projections and the trust of it's acquisitions partners and investors. The crap hit the fan and the place is a stinking mess now.
Whether they can survive the current problems remains to be seen but their obnoxious cloak and dagger dealings and disregard for their common shareholders is nothing short of irritating and potentially dangerous for the personal investor, having his/her money tied up for 20 days still without the 10k.
Too late to warn you again to get out. Unfortunately there are some experienced investors who have the respect of many but on this occasion they have sold you down the bullish river.
