Georgi Kamburov

Vapor Corp. (OTCBB:VPCO) Slumps After Q2 results

by Georgi Kamburov August 1, 2013
77VPCOchart.pngAfter reaching as high as $1.40 during the amazing climb they made from May to mid-June, Vapor Corp. (OTCBB:VPCO, VPCO message board) has been trying to find a stable price level. And for a couple of weeks it seemed that they had settled just above the $1 mark . But yesterday they suffered a major drawback when they started dropping down right from the get go wiping nearly a quarter of value to end at $0.76. The panic selling was quite serious with more than 1.5 million shares being traded.

The reason behind the mass exodus of investors is the financial report VPCO filed two days ago. Although the results contained inside it are far superior to the majority of other pennystock companies, they weren't nearly as impressive as the optimistic PR articles and the couple of interviews with the CEO suggested. Despite the e-cigarette market expanding at a rapid pace they actually had less revenues compared to the same period last year:

  • $245 thousand cash
  • $4.5 million total current assets
  • $4.2 million total current liabilities
  • $6.1 million revenues
  • $54 thousand net loss

The company has a positive working capital and negligible net loss. As a whole for the six months of 2013 they are profitable by $64 thousand. The explanation given for the lower revenues is decreased sales to a distributor coupled with unfulfilled orders for $1.5 million.

VPCO haven't resorted to the usual techniques used in the land of pennystocks. They haven't been targeted by paid pumpers and have kept away from the dangers of toxic funding. Issuance of stock is also kept at a minimum with 60 million shares outstanding out of 250 million authorized. When things have settled down investors may find the current lower prices quite attractive as an entry point.

2XXIIchart.pngAnother company with stable operations - 22nd Century Group, Inc. (OTCMKTS:XXII), climbed further up by 5% and are now at $1.58. For most of the session they were sitting even hire at $1.70. The company is trying to create tobacco plants with modified nicotine content through plant breeding and genetic engineering.
The Awesome Penny Stocks pump that has been going on for Xumanii, Inc. (OTCMKTS:XUII) tumbled once more. XUII fell by 15% dropping further away from the coveted $1 price per share.

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