VAPE Holdings, Inc. (OTCMKTS:VAPE) Threatens to Sink Below $3
VAPE Holdings, Inc. (OTCMKTS:VAPE) will have to get used to a new, much lower price range, as it could not keep up with the price after a reverse split. VAPE sank a tentative 3% to $3.04, as selling reached $1.63 million. So far, VAPE is being bought up from time to time, as the company still has moments when it looks like a bargain.
VAPE is a pure-play stock promising to start shipping out its vaporizers, but this has not stemmed the deep correction in the stock price. For now, VAPE still qualifies for the Marijuana index, with a weight of 0.46%. Unfortunately, the index continues to have days with most stocks in the red, and still drifts sideways at around half the value from the peak levels.
Investors’ forums, however, remain optimistic, awaiting a recovery and a much higher stock price for this ticker, coming as soon as the summer months unroll. But prognoses are in both directions: that VAPE will either aspire to the $50 range, or sink to the modest price of $1. For now, the long trend in the red is seen also as a temporary event, where warrant holders are making use of the beneficial price positions.
While this has cost a lot for investors, the new low price may not be the end for VAPE. Even bargain buying may turn sour, not the least because VAPE is showing significant deficits for all the great ambitions:
• $19 thousand cash and total assets
• $349 thousand total liabilities
• ZERO revenue
• $267 thousand net loss
Only the next quarters would show if VAPE realized any of the orders for vaporizers, competing in an already well-supplied market. Perhaps the more optimistic development is the acquisition of Hive Ceramics, a company specializing in ceramic products for cannabis use.
The whole group of e-cigarette and vaporizer producers is under pressure in the past weeks, partially because of extra scrutiny from the FDA, but also because of the slowdown in the pot stock boom. One of the preferred selections, mCig, Inc. (OTCBB:MCIG) is now even below the 50-cent price, sinking by 12% to $0.48. MCIG enjoys robust volumes as well, thanks to its inclusion in the Marijuana index.
Other similar-looking bets are way riskier. Vapor Brands Int’l Inc. (OTCMKTS:VAPR) rose on the mere promise for a product. VAPR has fallen by about 60% since the middle of March, sinking down to $0.14.
If you like VAPE for what looks like the rock bottom of the price range, keep in mind that the lowered number of post-split shares does not guarantee price stability. VAPE has only 6.5 million shares outstanding, but an unknown free float. It is best to adjust your time frame, and make sure you can afford the losses if VAPE does not bounce off.