VAPE HOLDINGS INC (OTCMKTS:VAPE) Climbing the Charts After Bounce
On Oct 1 VAPE HOLDINGS INC (OTCMKTS:VAPE) dropped and continued to plummet until Oct 20. After the fourteen-day descent, which resulted in a 60% price drop, VAPE finally bounced on Tuesday, and since then has been climbing the charts. Yesterday the stock had its third consecutive positive session. 256 thousand shares changed hands while VAPE gained 4.96% and closed at $1.27.
VAPE is still very far away from its positions when the marijuana craze was at its peak at the start of 2014. Back then VAPE was hovering high in the charts with prices ranging from $14.60 to $35.90. Today, VAPE struggles to sustain prices between $1 and $2, and that’s a long way down from $35.90.
The most recent news we found on VAPE was an article issued on Oct 19. According to it, the SEC will be taking a closer look at all marijuana-related companies on the market, since there have been so many pumps on pot stocks, which bring huge profits for some, but in the end harm the regular investor. The article mentions several companies, which are “under scrutiny”, including VAPE, Growlife Inc (OTCMKTS:PHOT), and Growblox Sciences Inc (OTCMKTS:GBLX). It is highly unlikely that this caused the surge, what’s more likely is that it caused the 14% drop on Oct 20.
Another article, from Oct 15, disclosed President Obama’s intentions to nominate Vanita Gupta for the position of United States Assistant Attorney General for the civil rights division of the Department of Justice. Ms. Gupta supports the legalization of marijuana, and it is no surprise that a lot of people in the marijuana industry believe that if she were appointed to the position, it “will be simply game changing”.
As we already mentioned, VAPE has no recent filings, their latest one is from Aug 19, and it is their latest 10-Q. For the three months ended June 30, VAPE reported their biggest revenue yet. As they disclosed, this was their “first revenue-generating fiscal quarter”. Other than that, the numbers failed to impress. There was working capital deficit and a substantial net loss.
What’s worse, the 10-Q shows that VAPE has made quite a lot of issuances at considerable discounts. 296 thousand shares were printed with a price of $0.678 in this quarter alone. There are also notes, which convert at a 40% discount from the lowest market closing price within the previous twenty market days, and shares with a set price of $1.31.
Investors would do well to familiarize themselves thoroughly with the details surrounding VAPE, before committing to its stock.
