Rich Cigars Inc. (RCGR, Financial) made its official debut on the Pink Sheets market Wednesday. The company was proud to announce the debut as it took it almost a year of meticulous preparation.
Because Rich Cigars is now on the Pink Sheets market, the company needs to report to the Securities Exchange Commission.
Rich Cigars completed its first trading day on the Pink Sheets market Wednesday. To the surprise of the company's management, the stock performed better than expected. Rich Cigars opened at a price of 80 cents. For the day, the company saw a relatively significant volume of trades that totaled to 16,740. The stock closed at 95 cents, an 18.8% increase from its opening price. The company's stock recorded a high of $1.05 for the opening day.
Richard Davis, Rich Cigars' acting CEO, commented that the first trading day of the company's stock was better than anyone had expected. Davis also added that because the company has entered a sector that is usually "dividend generous" and considered profitable, the stock enjoyed a great first trading day. Aside from that, Davis is convinced the RICH brand will be able to offer something that is a sexier alternative to competitors like Philip Morris International (PM, Financial) and Altria (MO, Financial).
Davis ended by saying that the company expected to open at 75 cents. While the company officers believe its stock will eventually reach $1.50 in the near future, they never anticipated it would hit a high of $1.05 on the first day. With the help of the company's "celebrity ambassadors" and good earning projections, Davis said 2017 is going to be prosperous for the company.
About Rich Cigars
Rich Cigars is a distributor and maker of premium, high-end and hand-rolled cigar products marketed under the brand name "RICH." The company mainly operates in Ocala, Florida, but much of the aging and processing of the tobacco happens in Central America, mostly in Nicaragua. Iconized by the entertainment and sports industries, Rich Cigars is becoming a "lifestyle brand."
The company also has a plethora of endorsements from various celebrities and sports personalities. In fact, Rich Cigars is the chosen cigar vendor at events for Derek Jeter, Michael Jordan, etc. The brand has already been featured in print photography and music videos as well as in high-end entertainment and sporting events. Rich Cigars' cigars are presently being sold nationally via regional and local cigar retailers. The company also sells directly via online ordering.
While Davis believes the company is poised for profits in the future, such belief is still in question. This is largely because of the public's growing sentiment against tobacco. Although much of the public's distaste is centered around cigarettes, it may not be long until the cigar industry receives such treatment. Furthermore, the vape industry is growing at an unprecedented rate, which is a direct competitor to the cigar and tobacco industry.
Disclosure: I do not own any shares of any stocks mentioned in this article.
