Georgi Kamburov

Vapor Hub International Inc. (OTCMKTS:VHUB) Bombs Even Harder

by Georgi Kamburov June 3, 2014
VHUBchart2.pngRight before the weekend the stock of Vapor Hub International Inc. (OTCMKTS:VHUB, VHUB message board) put an end to its recent climb by wiping close to 12% of its value and dropping down to $0.56 per share. Now, with the start of the new week it is falling down even faster. Yesterday VHUB crashed by 18% and at the end of the day was trading at $0.458. In just two sessions the company slid by close to 30% and lost nearly 20 cents of its share price. 

We warned our readers that VHUB was propelled upwards thanks to the artificial hype created by paid pumpers. Investor-Edge and The Analyst Review were paid $65 thousand on May 15 in order to ensure increased awareness around the stock. Now both pumpers disclose a new compensation of $210 thousand that should be received on June 15 which means that even yesterday's devastating crash may not put an end to the promotion.

And the likely reason for the prolonged pump campaign might be the millions of extremely cheap shares owned by 33 seed shareholders of the company. Initially they bought 3,34 million shares back in 2010 for just $0.01 each but the 9-for-1 forward split performed this January turned that number into more than 30 million. It should be quite obvious that at the current price levels of the stock these people stand to gain millions.
 
The risks around the company go far beyond the paid pump though. VHUB joined the e-cigarette and vaporizers industry just a couple of months ago through the acquisition of two private companies. This enabled them to start generating revenues but for now the financial results are far from encouraging. For the quarter ending March 31 VHUB reported: 

• $200 thousand cash
• $343 thousand total current assets
• $206 thousand total current liabilities
• $188 thousand revenue
• $3413 net income

The company has limited resources and the current market cap of $31 million is way too big for them to maintain. Even if you 2VAPEchart.pngbelieve in the future potential of the industry it is important to take into account all the risks around the stock before committing to any trades. 

Yesterday the stock of mCig Inc. (OTCBB:MCIG) had a rather turbulent session but managed to keep its gains and closed at $0.502. VAPE HOLDINGS INC. (OTCMKTS:VAPE) didn't have such luck and they continued to slowly approach the $2 dollar mark ending the day 2% in the red at $2.05.

Comments 5

1. Guest
October 15, 2014, 06:10PM

Quotes Analyst Review is sending out emails again, alerting investors of their next hot pick being released on October 17th. The email very much resembles what they were sending out when they were last pumping VHUB back in May-June.

"1. An industry expected to grow faster than smartphones.
2. True upside with existing revenues, positive profits and new acquisitions.
3. Actionable strategy with evidence of execution, pointing at the perfect entry-point for our subscribers."

I have a strong suspicion that it will be VHUB. Considering the $210k disclosure that is mentioned in the above article appears to not have been acted on by Analyst Review yet, and VHUB PR have been unusually quiet for the last few months, it makes sense!!!

If your still holding VHUB, this could be your chance to off load them. Lets hope!

2. Guest
September 08, 2014, 04:50PM

Quotes This company is dead.

3. Guest
June 03, 2014, 08:20PM

Quotes The family behind this company has been successful with other ventures and businesses, why not this one? Maybe quite a lot of sales since March 31/14...the company is just launching and really only ramping up in second quarter of 2014. So far I'm impressed with their recent progress, new agreements and contracts, and b2b website. Who knows what the trade shows might bring in Florida and France?

4. Guest
June 03, 2014, 05:30PM

Quotes So should we sell VHUB ASAP or wait until it goes back up?

5. Guest
June 03, 2014, 01:46PM

Quotes PMCM ready to rise again, new lows hit today - only up to go!

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