Vapor Group, Inc. (OTCMKTS:VPOR) Continues to Slide Despite Earnings Announcement
Vapor Group, Inc. (OTCMKTS:VPOR) spent a while in the limbo between nine and ten cents, and now sets the question of picking a new direction. Facing the end of the week, VPOR sank down by more than 17% to $0.09, as selling expanded a bit to $1.16 million. Not even the preliminary announcements of earnings have helped so far to create an unusual day, as VPOR remained subdued after the PR from May 15th. 
The new results, though preliminary, held some improvements:
- $1 million gross revenues
- Over $600,000 Gross Profit
- $1.99 million gross revenues for 2012
Now, VPOR will have to integrate its new structure, as the first quarter arrived with a merger with AvWorks Aviation Corp., as well as an acquisition of a part of American Vaporizer, LLC. In effect, this positioned VPOR as yet another fresh ticker with prospects to serve the legal cannabis sector, and triggered the fast price rise a couple of months back. Now, VPOR will have to prove that the business model works, and perhaps renew investors’ interest.
VPOR is dangerously far from the $0.40 levels it achieved easily a month back, and now investors’ forums can’t reach agreement on what would be considered a fair bargain level. Still, there are some expectations for strong sales as the potential of the e-cigarettes and vaporizers market remains robust.
While VPOR has not seen a formal email promotion, we have seen great activity on Twitter. Many high-profile posters mention a ticker that holds some appeal, and may have influence over the price movements. Still, VPOR has the task of awakening its price potential just as the general marijuana sector keeps dropping. Every day, the Marijuana index sinks lower, losing around 5-7 percents of its value in the past few days, with no signs of recovery. Formerly active MMJ tickers are also drifting sideways.
Speaking of vaporizers, mCig, Inc. (OTCBB:MCIG) is having a small upward run, as it tries to regain some of the higher positions. MCIG posts small net daily gains, and managed to claw toward $0.43 as buyers start to return. But in the past months, all those small climbs were followed by yet another downward shift. So it is early to call a recovery when MMJ tickers are mostly unraveling.
The other struggling ticker in the e-cig business is Vape Holdings, Inc. (OTCMKTS:VAPE), which could not keep to its high price after the reverse split. VAPE for now remains at $2.90, when only about a week ago it revved up its engines to gain over the $4 levels once again. But the slide from the $9-$10 range was painful, and injured deeply the confidence in this ticker. VAPE, however, still has the advantage of being included in the Marijuana index, which may supply it with more buyers as the general trading volumes remain rather slim.
If you are looking for a ticker that may take off any moment, VPOR looks like a good choice initially, but plan your timing and investment size accordingly, to avoid being caught in a continuing price depression.
