Ha, I remember thinking that when I "graduated" from buying beer to making my own exceptionally good beer. Very cool at first, but then the microbrew industry grew to fill the gap in market desires, and now I can find exceptional craft brews that are basically as good as the best home brews that cost about the same as making it, with much less time & effort. If the current snob market for "other devices" and "better e-liquids" gets truly big enough, the players like VPCO will step in. The market always catches up to demand, if the demand is really there.
E-Cigs provide similar enjoyment, with sufficient nicotine delivery, at lower cost, with much lower health risks.
It's just a matter of time now. :-)
Has it crossed anyone's mind that the reverse split is only just an approved possibility that they may let expire, and possibly re-propose in 2014? It seems likely that, at the current rate of revenue and earnings growth, and the clear interest in e-cig stocks, may just be sufficient to drive the price up to the minimum NASDAQ requirements in 2014 without any reverse split? Business 101: Keep your options open, but do only what's necessary. Until VPCO officially announces the effective date of a reverse-split, its only an option that's not guaranteed to happen.
Glad you made a nice profit, but the logic that you use to suggest that VPCO is basically doomed is seriously flawed:
- I've seen less than a handful of people driving a Tesla, but thank goodness that didn't stop me from jumping in early. If I let my personal observations dictate what I invest in, I'd always be too late to the party. Just ask any venture capitalist.
- The actual stats are that about 3 million people are dabbling with e-cigs, which is a low single-digit percentage of the traditional nicotine market, and is just a fraction of one percent of the broader addict market. The potential for growth in e-cig use is staggering. I guess that if my anecdotal observations made me conclude that growth was lacking, yet everyone else is talking about e-cig shops opening everywhere, and the corporate sales numbers for all e-cig companies show impressive growth across the board, and there's discussion to regulate that entire class of product, then I'd seriously question the validity of my observations.
- When's the last time you saw the cost of a carton of cigarettes go down? Product and tax costs of smoking traditional cigarettes will continue to rise rapidly. At some point in the not too distinct future, the cost pressure to switch to e-digs will become irresistible, even if they aren't a perfect substitute for the "real thing".
- Government regulation of cigarettes (or alcohol for that matter) didn't slow down sales or deter new consumers. The government just wanted a share of profits that it knew would continue to grow. Regulation of this fledgling product is actually flattering, since its an acknowledgement that their government studies show that its growth is unstoppable. Otherwise, why would they bother talking about regulating it?
- Like iPods, Teslas, and e-cigs, there's a lot to be said about investing in the type of product that virtually sells itself.
Think like a VC. Its all about executing in a world that's all about growth.
Most U.S. corporations are incorporated in Delaware. The reason any company re-incorporates in Delaware (which doesn't mean moving) is to take advantage of Delaware's business-friendly laws, and to expand the flexible possibilities that come with being incorporated in the same state as most other U.S. corporations. That includes, but is not limited to, a less red-tape-laden company sale, merger, or acquisition. In short, its a sign of very savvy management who is looking out for the shareholders!
Jeannie, grant me the wish of having to pay the IRS for every stock sale that I make for the rest of my life! Having to pay the IRS is bad thing? Geez, what a moron.
Perhaps you should put this in more precise context: This is a pure-play stock for a company whose products are just beginning to transform a massively-huge, world-wide industry. Look at the historical stock data for other such companies when they were just starting. The greed of the shorties, and frantic traders who set their sell-stop prices too high, initially drives it up more than fundamentals, but then fundamentals eventually catch up. It's quite a ride. Blu had to sell itself cheap. Vapor is in an infinitely better position. In this case, 100% over 2 weeks is nothing. Just watch what happens to all the $2 shorties & conservative sell-stoppers over the next 2 weeks. This is gonna be fun!
So you're saying that the demand for VPCO is orders of magnitude higher that it is/was for ECIG. So I'll say it again: It's interesting to note what can happen to a stock that can't meet the demand because the holders aren't selling. It's just economics. Kids these days...so over-reactive.
Yes, I agree with lsguitars. VERY well stated. And the system is a proven one. But, as lsguitars also stated below, "this is a tough one right now to figure out." Which really means, "This stock doesn't appear to be letting me easily follow my system right, so I'm confused." No system is perfect, and every one of them breaks down under certain circumstances. Consider that this may just be one of them...
It's interesting to note what can happen to a stock that can't meet the demand because the holders aren't selling. 52-week range: 0.56 - 60.00, Float 25.32M shares:
Ya know that depressing scenario that happens to everyone, where you think you sell at a temporary high, and hope to get back in after a massive drop that never happens? Then, you continue to wait for that perfect time, and suddenly the rocket takes off without you, and you get screwed? Hmmmm....
You don't call trading over 2M shares enough selling? Hope y'all at least enjoyed a dram and a smoke while you waited patiently for your nice, low price target. :-)
...and, NORMALLY, I'd say its gonna pull-back from $2, but this seems to really feel like one of those once-in-a-decade times where so many holders are absolutely convinced about the inevitable growth and eventual dominance of this industry over the long term, that only the day-traders are selling. Heck, even a serious day-trader must be thinking twice about selling! This rare environment means that a continued breakout beyond $2 wouldn't be a surprise (did you see what happened at $1.50?), and shorts would actually continue to get massacred worse than I've seen in decades. Who needs a reverse split? All I can say is, "Wow."
To your point, any idiot knows that the e-cig train has left the station, and there's no stopping the momentum now, even with regulation of a HEALTHIER product. Plus, forget about the smokers in the U.S., think the WORLD! Man, this is the most obvious play since Cisco back in the late 90's!
Government regulation requires massive bureaucracy. Massive bureaucracy takes massive time. Massive time allows for exponentially-massive product adoption. Massive product adoption means massive pressure to kill regulatory efforts. Killed regulatory efforts means massive profits for investors. Hop on now and love the ride, before its too late.