My email to the investor representative today:
Hello,
I am a recent investor in Vapor Hub International stock VHUB and found your information on the company website as an investor representative. I am reaching out for information on management's near term objectives , accomplishments, and to advise on how to act in shareholder's best interest regarding various current factors. After doing much due diligence on the company's newest 10-K financial statement and various chart technical analysis here are my concerns and questions:
VHUB financial condition has greatly improved in the last fiscal year. It has just recently became operationally profitable and experience higher revenue growth. This trend is reducing financial risk, thus the increase in PPS and uptrend we are currently seeing. Also, if VHUB continues and increases this positive trend, we can overcome the interest expense and other expense from the current convertible debt capital structure to begin to reduce the accumulated deficit of stockholders equity. However, the company's PPS has been in a downtrend since IPO, due mainly to this terrible toxic debt structure/dilution they currently have. The convertible debt or issuance of common shares to pay debt has caused ~30% dilution to the O/S year over year and has destroyed the PPS/Stock holders equity. This convertible debt should not have been overlooked/ignored with previous investments in VHUB as outlined in the risk section of the 10-Ks. However, with this said, my question for management is what current and previous actions has management done to decrease this financial risk and dilution? Can this be refinancing be accomplished in the near term? When can investors expect to hear an update? Is management worried about the current NWC risks?
To improve shareholder value, you also have to take into account the increased liquidity risk and agency costs (management acting not in shareholder's best interest) when there are periods of silence, low trading volume, or zero PRs. Which has also been a negative trend in VHUBs history and has accelerated the PPS decline. Can shareholders expect some communication, update, or conference call from management in the near future?
Furthermore, the current chart conveys that the price per share has bottomed at .003,continues to move in an uptrend, and above most daily moving average. This is all while the demand for stocks in the OTC marketplace is currently rapidly increasing. These are all signals that management should be aware of and use to shareholder's advantage in order to increase value. As of yesterday, we have fallen below the 200daySMA (a very popular moving average illustrating near term trend change) and could very well continue lower to test the current uptrend line around .01. Can management release any information regarding current sales, capital structure, growth, etc to aid the current momentum and external factors?
Thank you for taking the time to read my analysis and inquiry. I am looking forward to hearing back from you or management.
Sincerely,
Hayden
