Vape Holdings Inc. (fka VAPE)

[neverenough44]

I think a couple of things lead to yesterdays drop in price...

1. Profit taking - plpe has come a long way pretty fast and some people locked in profits. Perfectly normal and healthy.

2. Momentum traders - a lot of the very low quality mj stocks shot up yesterday and I think some of the momentum traders jumped over to them. This is not a big deal because they will be back. Not to mention the whole new group of momentum traders that are going to be jumping in tomorrow with legalization kicking in today.

3. Tax loss selling - People are forgetting that there are still a lot of old peoplestring shareholders. Looking back at the historical prices, plpe traded over a dollar in 2011. There are still plpe shareholders that bought in at that price. With the current bull market pretty much everybody is looking at capital gains taxes on trading profits. Unfortunately yesterday was the last day of the year to take losses to counterbalance those gains. With plpe still trading thin I think the tax loss sales had a definite impact. The good news is that stocks that are hit with tax loss selling also tend to experience what is called the "January effect". Here is the definition of "january effect" from investopedia...

Definition of 'January Effect'

A general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off.