Vapor, Corp. (OTCMKTS:VPCO) Stands at $1.10 After Financial Results
Vapor, Corp. (OTCMKTS:VPCO) has long made the impression of a company with a viable, in-demand product, electronic cigarettes. The stock price is quite responsive to good news surrounding the business, and the last financial results boosted the ticker, sending it easily above the $1 level with which it struggled in the past weeks. The ticker was traded on $1.2 million buying volumes, reaching $1.10 with a gain of more than 14.5% on the day. 
The company has a gross profit of $2.4 million for the last quarter, a little lower than Q1 of 2013, but comparable. The net gain is $27,000, significantly lower than the $195,000 of the first quarter. But VPCO has still proven that it can get out of losses and stay out, overcoming the negative results in preceding periods. Also, the company holds: 
- $176,000 cash
- $4.3 million total assets
- $4.036 total current liabilities
So far, VPCO just has to sit and wait, and spread its products well enough to achieve a healthy gain on the sale of electronic cigarettes. If the stock is pumped, this may be just a way to improve the record of promoters, since VPCO has much better underlying data than many penny stock companies. And at $1, it is still accessible enough for buyers.
VPCO operates several brands of electronic cigarettes, and is considering a move to the European market. An increase in smoking bans has opened up a market for those kinds of products, although there are still safety concerns and talk of better regulation. But this should not affect VPCO in the short term.
But here is what happens to even a solid company that is promoted a bit too much. Emails plus a paper mailer caused a temporary wonder for Montalvo Spirits, Inc. (OTCBB:TQLA), but in the past weeks the ticker was sold off, losing some of the longer-term credibility, and moved away from the $1 levels to around 58 cents.
22nd Century Group, Inc. (OTCMKTS:XXII) is another consumer product wonder from the past weeks. The low-nicotine cigarette maker reached a peak of $1.60, but since then went on to slide, threatening to break below $1 again some time soon.
No product or business strategy would ensure the stability of a penny stock. While VPCO is less volatile than other tickers, in the past it has slid down as much as a third. It is best to estimate independently the time horizon for your investment, and not put in sums that you are unable to afford losing, in part or in whole.
