Vapor Corp. (OTCMKTS:VPCO) Continues Falling
For a third day in a row the stock of Vapor Corp. (OTCMKTS:VPCO) has been sliding further down the chart. Yesterday they lost another 10%, fell trough the $1 mark and at closing time they were sitting at $0.94. Investors decided to take a step back from the ticker and traded volume was cut in half compared to the previous day. Since that start of the week they have lost a little more than 30% of their value or around 46 cents.
The company operates in the electronic cigarettes market through a number of different brands but their more recognizable ones are Fifty-One and Krave. Advertised as the healthier alternative to traditional tobacco products, the e-cigarettes have become one of the most rapidly growing industries in the last couple of years. This growth has been strongly supported by a worldwide movement against smoking due to the health issues associated with the effects of second-hand smoke.
Because of this VPCO have been able to post improving financial results year-over-year with $21 million in sales for 2012. In 2013 they even achieved profitability for the first quarter. According to their 10-Q report, VPCO finished the period with the following results:
- $279 thousand cash
- $4.6 million total current assets
- $4.2 million total current liabilities
- $6.3 million revenues
- $123 thousand net income
As is the case with any new product, after the initial hype died out concerns began cropping up. Scientists are demanding more thorough research into the effects of the liquid solution used in the e-cigarettes as well as increased safety-measures implemented in the electronic parts. Some litigation and restrictions against the e-cigarettes are bound to be approved but countries like France are contemplating even harsher laws.
For now VPCO have stable fundamentals, there are no paid pumps in their history and have restrained themselves from releasing any fluff PR articles. This cannot be said for the majority of the other pennystock companies.
For example Prince Mexico S.A, Inc. (OTCMKTS:LUVE) bombed on the second day of their $350 thousand pump. Even worse performance was displayed by the stock of US Energy Initiatives Corporation, Inc. (OTCMKTS:USEI). They lost nearly 30% on the first day of their promotion despite the $150 thousand funding. Once again this shows that doing your due diligence should always be the first thing to do before committing to any trades.
