Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) Falls Down Even Harder
The stock of Electronic Cigarettes Intl Group Ltd. (OTCMKTS:ECIG) seems to be in a state of freefall. Not only that but it is actually accelerating its descent and after wiping another fifth of its value during yesterday’s session it is now sitting at $1.44 per share. Out of the last thirteen sessions ECIG have managed to close in the green only 2 times and the gains were minimal at best. Since the start of November the stock has dropped from $3.61 to less than $1.50, a decline of nearly 60%. The fact that yesterday’s crash took place on the biggest traded volume seen by the company is also rather discouraging.
Instead of filing their financial report for the quarter ending September 30 yesterday ECIG submitted a notification of late filing. In it the company explains that it was unable to complete the report without unreasonable effort or expense but it still expects to file it by the end of five day extension period. The numbers contained in the report are more than likely going to determine the course of the company’ stock.
Although ECIG are among the more stable pennystock companies and are generating millions in revenues their financial state still shows some weaknesses. They finished the quarter ending June 30 with the following results:
• $5.5 million cash
• $31 million total current assets
• $51.8 million total current liabilities
• $11.2 million revenues
• $28.4 million loss from operations
The company will need to address the fact that despite the increased revenues thanks to the recent acquisitions it still has a negative working capital of $17 million and a net loss for the first half of the year of $84 million.
ECIG are also trying to uplist to the NASDAQ national exchange but things weren’t going according to plan and they had to postpone the IPO offering. With no new updates about the progress of the uplisting process investors seem to be getting more and more discouraged and even the recently announced agreement with the McLane Company failed to influence the downwards slide of the stock.
After depreciating for so long ECIG could bounce back up but for a more prolonged recovery they will need to show some improvements in the new financial report. Any information about the NASDAQ could also help them reclaim some of the ground they lost.
In early trading today they are sitting 14% in the green at $1.65.
