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Lancelot Tucker
Lancelot Tucker
Articles (104) 

Taking a Closer look at Electronic Cigarettes International Group Performance

December 11, 2014 | About:

Electronic Cigarettes International Group (ECIG) has been around for a number of years now and the public is still getting used to the e-cigarette products that they sell. In the e-cig market, the company is said to be in a fluctuating state of gaining profits and sometimes losing in the market.

Electronic Cigarettes International Group is the sole marketers and distributors of a number of e-cig products now in circulation on the market such as FIN, Victory, VIP, VAPESTICK and others. They are the registered trademark owners of the aforementioned e-cig products and they concentrate their efforts in distributing their products in the U.S., U.K. and Western Europe. Nowadays, users can get e-cigarette information at ecigsopedia and other online sites.

Recently, shareholders received a headache when the company’s value declined by 90%. One very strong reason for this decline was that word has it that China’s e-cig market was manufacturing low rated e-cig products that were causing damage to software systems and their USB connections. It was reported that users who attached the e-cig charger to their computers stand a good chance of transferring malicious virus to their computer system.

In the past and even up until two months ago, Electronic Cigarettes International was on the ball showing a wonderful last quarter performance of $15.5 million with a spectacular 875%, which is a similar amount stemming from the previous year. At that time also, the company’s stock was riding at $5 per share with them trying to stage a capital raise of $150 million to see them on the up list side of the NASDAQ stock exchange.

However, instead of following through with their plans, they instead opted to postpone the NASDAQ up list because of adverse conditions taking place in the market at the time. Since the market was undergoing those negative and unstable conditions, the company’s stocks went down to $1 per share.

The drop in share price made many investors start speculating. Some investors saw ECIG's share decline as an opportunity to buy at a low price and later when favorable conditions arise to sell at a profit while others fear that the company might be on the verge of a stock split in an effort to rise up to the challenge of reaching the NASDAQ up list.

To date ECIG has a strong financial position. Its revenue is growing and accelerating to new highs, while its online business is showing remarkable growth and to top it all the company has entered two new major markets that it hopes will ultimately send its profits skyrocketing.

ECIG’s VAPESTICK market is up and running and on November 5, they started promoting their new Advance Vaping System (AVS) in the market. The AVS is an extension of VAPESTICK and the product has the go ahead for Tesco Express and Tesco Pharmacies to sell them in the U.K. It is therefore Tesco Express’s responsibility to promote and sell the product in all its 1,700 retail outlets stationed within the U.K. while Tesco Pharmacies will market the item in their 375 pharmacies in the U.K. as well.

Walmart’s subsidiary ASDA Stores Limited recently reached an agreement with ECIGs Victory Electronic Cigarette to make way for expansion of its VIP brand in the entire U.K. market. So far, they expect to start selling the brand in all the 272 outlets with a further expansion going to the ASDA Supermarkets, ASDA Supercenters and ASDA Superstores and this is all expected to happen in the next eight weeks.

Electronic Cigarettes International Group is now boasting a current asset of $30 million. Their cash position was up by $5.5 million with revenues for the past six months since June 30, 2014 standing at $15.4 million. ECIG’s market valuation is trading at $50 million and if the company continues to perform well, investors are sure to be on the winning end.

So far, all the key players are watching and hoping to see a steady growth in the company. Since the company has performed well in the past, there are high hopes that the company will continue its trend of success and will result in acceptable dividend payouts.

About the author:

Lancelot Tucker
Lancelot Tucker is a freelance writer living in Jamaica. He often writes about finances and other business based articles.

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