Electronic Cigarettes Intl Group Ltd. (OTCMKTS:ECIG)’s Recovery Didn’t Last
Electronic Cigarettes Intl Group Ltd. (OTCMKTS:ECIG) added 67.36% to its market value on Tuesday, when it announced that it is taking serious steps towards fixing its biggest issues.
True enough, the announcements made in the press release were encouraging. According to the PR, the company is to receive a solid $41 million financial injection that is to go straight to stabilizing its balance sheets. Further, if the announcement is to be believed, the company has gone a long way towards fixing its other problem – toxic convertible note holders flooding the market with shares.
The optimistic words of Dan O’Neill, ECIG‘s brand new Chairman and CEO, seem to have really impressed investors.
Still, investors should keep in mind that words are just that – perfumed hot air packaged in forward looking statements. This is probably why the ticker pulled 6.42% back yesterday.
What is needed now is an 8-K with the details of the steps that ECIG has taken towards improvements. Investors interested in the company should keep a sharp eye out for that – its effects on the ticker’s performance will likely be dramatic – for better or for worse.
On the other hand, it would not be surprising if the ticker continued losing even more ground until said current report comes out.