Vapor Group, Inc. (OTCMKTS:VPOR) Breaks Below 10 cents
Vapor Group, Inc. (OTCMKTS:VPOR) is sliding slowly, despite its attempts to boost its record with corporate updates. VPOR slid down another 13% on Thursday, to $0.091, as selling reached $1.07 million. The last three sessions of selling dragged the ticked down further from its recent small spike where it touched $0.15 and gave some signs of recovery. But VPOR just managed to make a dead cat bounce after its big run to $0.40, followed by a crash of more than 50%. 
VPOR is running the typical script of a hot MMJ stock that could not sustain the climb. Now, the biggest risk is to draw in more investors in what looks like a bargain price, and instead of a recovery to offer a continued deflation of the stock price. At nine cents. VPOR is relatively high-priced compared to the myriad sub-penny tickers linked to the cannabis sector.
Now, we have to wait and see if VPOR makes good use of its public placement of funds, to add to the otherwise decent financial disclosures for 2013:
• $48,000 cash
• $940,000 current assets
• $855,000 current liabilities
• 1.9 million revenues
• $160,000 net income
And there is also the question if the e-cigarette and vaporizers sector is still hot enough to attract investors. Stocks in that category often climbed significantly in the most exuberant days of the MMJ sector, but even the high-priced, promising selections slacked off in the past month. So far, the sentiment for VPOR swings between the technical possibilities of the stock price and the idea that the company is becoming toxic because of loading itself with convertible notes.
The terms of the notes, as we wrote, are setting limits, suggesting that VPOR would have to keep an $0.18 stock price or be considered in default. With such an uncertain future and a lack of news, VPOR is looking even riskier.
As for the potential of the e-cig sector, consider the well-traded mCig, Inc. (OTCBB:MCIG). This ticker suggested it could take off above the dollar levels, but stalled at $0.90, sinking back toward $0.42.
Vape Holdings, Inc. (OTCMKTS:VAPE) also started with big promises and even achieved an unusually high price through a reverse split. Now, the last weeks only charted a dead cat bounce as VAPE sank back toward $3, threatening to go below that level again.
What is promising about VPOR is that it already has an inventory of e-cigarettes. What is more uncertain is whether the climb is due to that business, or the subtle hint that e-cigs also mean an entry into the legalized cannabis market. We cannot know this for sure, but VPOR behaves like yet another MMJ stock.
If you want to see whether VPOR will be able to hold up its stock price to please its investors, it is best to be aware that no position is guaranteed, so avoid over-investing despite the solid-looking promises.
