Vapor Corp. (OTCMKTS:VPCO) Up by a Quarter
After taking a considerable step back from its mid-June highs of about $1.40 per share and spending some time under the $1.00 dividing line, yesterday Vapor Corp. (OTCMKTS:VPCO) took a brief dip in early trading, then raced up to close the day nearly 25% up on considerably heavier share volume.
Vapor Corp. is in the electronic cigarette business, producing several different brands of e-cigs. VPCO is a business currently valued at $71 million, at yesterday’s closing price. Sadly, the stock could not maintain its mid-June levels that were reached far too quickly.
On the positive side of things, VPCO has never been targeted by stock pumpers – a thing worth mentioning in OTC land where every other company has been promoted at some point in time. Here is a brief look at VPCO‘s latest quarterly report for the period ended March 2013:
- $279 thousand in cash
- $4.2 million in current liabilities
- $6.3 million in quarterly revenue
- $123 thousand in quarterly net income
The company does appear to be making strides forward, with Q1 revenue increasing by about 30% year-over-year, and with this quarter recording net profit instead of loss, even if it’s a modest $123 thousand. Expenses still chew through a huge chunk of the gross profit.
Despite the still-booming state of the e-cig industry, the legislative side of the products is not yet set in stone in many locations worldwide. Large media outlets recently announced that the United Kingdom plans to classify the devices as medicine – a decision that sparked an outcry among e-cig makers. France is also trying to ban electronic cigarette use in public. On the purely scientific side of things, the effects of the prolonged use of e-cigs have not been researched by a sufficient number of health institutions. This all places a lingering uncertainty around the success of businesses operating in the sector.
Among the gainers in yesterday’s market were NanoTech Entertainment, Inc. (OTCMKTS:NTEK) who closed 18% up, assisted by a stock pump this week. Blue Earth, Inc. (OTCMKTS:BBLU) also closed 5% green yesterday.
