Vapor Corp. (OTCMKTS:VPCO) Surges To Record Levels.
On Friday the stock of Vapor Corp. (OTCMKTS:VPCO) continued its upwards trend by adding another 18% to its price. At closing time it had already reached $1.32 on 1.6 million traded shares. In just 7 day the ticker rose by more than 230% in a steep run that started as low as $0.57. The current levels take the stock closer and closer to its 52-week high of $1.50.
VPCO offers a variety of different brands of e-cigarettes and accessories for them. With the widespread movement against smoking and the recent legal actions adopted by many countries restricting smokers and traditional tobacco companies, the electronic cigarettes have been growing in popularity as a healthier alternative. This upswing fueled VPCO‘s growth and they have been posting increasingly better financial results. According to their latest quarterly report for the period ending March 31, they had:
- $279 thousand cash
- $4.6 million total current assets
- $4.2 million total current liabilities
- $6.3 million revenues
- $123 thousand net income
Despite the impressive sales results which were 31% better the the ones from the previous year, VPCO is maintaining its profitability by a very thin margin. Still the results are not something often seen among pennystock companies. Another positive sign is the absence of any promotes touting the stock.
The positive projections for an even greater growth may not become a reality. More and more scientist have began expressing concerns regarding the safety of the electronic cigarettes. France is even contemplating banning them outright. Not to mention the trials filed against the company by Ruyan Investment (Holdings) Limited accusing them of patent infringement. On March 1, 2013, VPCO and Ruyan managed to settled on of the lawsuits while the other has been stayed as of February 25.
Another company that enjoyed a positive session on Friday was Liberator Medical Holdings, Inc. (OTCBB:LBMH) who added more than 20% to their value. DoMark International, Inc. (OTCMKTS:DOMK) followed close in their footsteps closing 15% in the green.
VPCO have stable business operations and are planning to expand their marketing efforts. They are scheduled to appear at some big conventions in the next couple of months so the positive trend may hold at least for now. Investors are encouraged to do their own due diligence before committing to any trades especially ones involving pennystocks.
