Is Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG)’s Bounce Going To Last

Today’s green opening seems to have given Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) enthusiasts high hopes that the ticker is headed for a lasting recovery, but is that really possible?

Let’s just say that one look at the figures that ECIG gave in its latest financial report presents a picture that can easily be called horrifying:

  • Cash – $1 million
  • current assets – $12.7 million
  • current liabilities – $183 million
  • revenues – $11.1 million
  • net loss – $67.5 million

The company’s share structure is an even more grim sight. Things were so bad that ECIG had to enter into a loan agreement for over $41 million just to pay off some debt before said convertibles could crush the company’s market value completely.

The rain of dilution in the wake of ECIG‘s failure to up-list to NASDAQ pushed share prices so low that the company was forced to perform a 1-for-15 reverse split on March 24. In the wake of the split, the company had approximately 20 million shares outstanding.

The fact that ECIG had 70 million shares outstanding as of May 19 should be indicative enough of the danger that ECIG investors face if they decide to commit to this company’s stock.

Long story short – there are still too many factors pulling ECIG stock prices down, that may fling the ticker to the very bottom of the charts at any moment. With this in mind, let the buyer be ware.

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