Vapor Corp. (OTCMKTS:VPCO) Corrects After Reaching New 52-week High

The producer of electronic cigarettes or more commonly known as e-cigs Vapor Corp. (OTCMKTS:VPCO) has consistently found its place among the top traded OTC stocks. This fact is important because for now VPCO have not been targeted by any paid promotions and thus their stock has been moving without any artificial hype. It truly speaks volumes when a company is capable of supporting its stock from $0.7 at the start of the year to nearly $1.8 as of this week.

Still VPCO has seen its fair share of volatility which is something to be expected from a pennystock. This may very well change in the future as the company has begun its journey to uplist to NASDAQ no later than July 29, next year. More details are contained in the terms of the recent $10 million private placement executed by the company in October. The first step that has already been done was the reduction of the 40 million common shares reserved for the company’s equity incentive plan to 9 million. Next will be a reverse split that should take place before the end of the year that is supposed to boost the price per share to minimum 150% of the NASDAQ requirements.

This reverse split comes hot on the heels of nearly 33% dilution of the common shares. As part of the private placement VPCO issued 16.6 million shares with another 3.9 million issued after some of the senior outstanding notes were converted. This brought the total outstanding shares to more than 80 million but that number is likely going to change next month. 

On the financial side of things VPCO has been posting continual year-over-year increase in revenues and have turned in a positive bottom line for the last quarter. If you are considering making an investment in the company be sure to keep in the mind that currently the e-cig industry is largely unregulated and if the FDA decide to intervene it may be detrimental to the company’s business. 

Yesterday, right before the holiday the stock of Nevada Gold Corp. (OTCBB:NVGC) got suspended by the SEC. The company was the target of paid pump for some time now and we warned investors to be extremely careful when playing their stock. Fresh Healthy Vending International, Inc. (OTCBB:VEND) have also fallen on hard times this week with three disastrous consecutive sessions in which they slashed more than a dollar from their value and are currently sitting at $1.87.