Vapor Corp. (OTCMKTS:VPCO) Starts The Week With A Drop
The steep upward trend of Vapor Corp. (OTCMKTS:VPCO) came to an abrupt end yesterday when investors decided it was time to cash in their holdings. The stock opened at $1.40, $0.08 higher than the previous close and in early trading was heading up to $1.44. The positive movement was short lived though and at noon it began falling down. At closing time the stock had consolidated at $1.15.
VPCO are designing, marketing and distributing electronic cigarettes and accessories for them. The market for electronic cigarettes has been booming in recent years with more and more smokers switching over from conventional cigarettes. This trend is likely to continue at least for now due to the widespread consensus against second-hand smoke and the health issues it causes.
This has helped VPCO post increasingly better financial results year over year since 2009. For the last year they earned $24 million in revenues and during the first quarter of 2013 finally achieved profitability. They finished the period with:
- $279 thousand cash
- $4.6 million total current assets
- $4.2 million total current liabilities
- $6.3 million revenues
- $123 thousand net income
Still the future is not all bright. Scientists have began expressing concerns regarding the effects of the e-cigarettes. The demand for more research on the liquid solution used in them has also been attracting support. The EU and more specifically France have began to contemlate putting restrictions on the usage of the devices among some ven harsher measures.
VPCO has had some disputes with the courts as well. They were named as defendants in two lawsuits filed by Ruyan Investment (Holdings) Limited. They managed to reach a settlement to one of them while the other has been stayed for the moment.
A much better start of the week had Jammin Java Corp (OTCMKTS:JAMN). They added nearly 20% and you can read about the reasons behind them in our article. On a lot more humble percentage Norstra Energy, Inc. (OTCBB:NORX) also managed to close in the green.
Despite the lack of any paid promoters VPCO is still quite susceptible to press releases and reacts almost immediately. As always doing your due diligence is mandatory before committing to any trades involving pennystocks.