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Re: ChitownMike post# 1132

Monday, 09/23/2013 10:31:19 AM

Monday, September 23, 2013 10:31:19 AM

Post# of 62131
Obviously the Big companies can compete. Lorillard bought Blu and quickly snatched up 40% market share with there quick television advertising campaign. The big tobacco guys are some of the biggest companies in the world, let alone the tobacco industry, they have limitless R&D Funds. I think it will continue the usual pattern, where many little companies spring up and fail or get bought out, until all the companies consolidate. I imagine a future with 1-2 pure vaporizer plays (if any, they may all get bought out) and the rest owned by Tobacco companies.

VPCO is lucky that they have a head start on most others, otherwise it could be very hard for them to get going. I have a good feeling they will get bought out some day, but for a fair amount more than they are worth right now. If Blue could get bought for $135Mil than VPCO could easily double or even triple before a buyout; as they market cap is only 60Mil currently.

The one concern I have is, Tobacco companies flexing there muscle, and forcing retailers to give preferential treatment to their brands, by threatening to pull their tobacco products, or some other means of persuasion. This would obviously make it hard to compete for smaller companies.
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