VAPE Holdings Analyst Report: Even in the Pot Industry, One Needs Solid Strategy and Business Acumen to Get High in Valuation by BrokerBank Securities, Inc. - - The News for South Mississippi

VAPE Holdings Analyst Report: Even in the Pot Industry, One Needs Solid Strategy and Business Acumen to Get High in Valuation by BrokerBank Securities, Inc.

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SOURCE BrokerBank Securities, Inc.

NEW YORK, July 7, 2014 /PRNewswire/ -- VAPE Holdings, Inc. (OTCMKTS: VAPE) has a proven revenue of about $30K for the first quarter of 2014.  It seeks to build business around the fragmented industry of cannabis products and services.  It pursues to build business through three channels.  First, manufacturing and selling products related to marijuana or cannabis use.  Second, establishing licensed facilities in medical marijuana or recreational marijuana-legal states.  And third, venturing into the e-cigarette industry utilizing established sales channels once the first two pursuits are successfully built into the market establishment. 

Buying a microcap stock is not always about the financial position of the past and sometimes this can be overlooked at least in the very short term.  In this case, VAPE must generate substantial revenue within the next 4 months or so in order to make the business viable due to its current financial position.  "General and administrative expenses for the three months ended March 31, 2014 were $207,851."   That is a lot of expense that cannot be sustained even until the end of the year unless new reliable revenue sources are discovered within the next month or two.  It needs to generate much more revenue than what HIVE can offer even in a rosy scenario.  At the moment, there is no tangible revenue source other than HIVE.  Notably in April 24, 2014, VAPE made a press release stating:

"As set forth in the Company's most recent press release on April 24, 2014, the Company generated in excess of $100,000 in sales in the first few weeks of April alone.  This is not included in the recent 10Q as it occurred after the quarter ended. In addition, the Company has sales lined up for at least an additional $250,000 in sales as of April 24. "

If this statement is accurate, this is all based on the sales generated through HIVE Ceramics.  However, ever since the press release there has been no mention of any additional information regarding the "$100,000 in sales."  Neither have there been any additional updates on how the acquisition is progressing.

The CEO states "VAPE is committed to keeping its shareholders informed when tangible events can be disclosed; it is not in the business of speculative press releases."   However, it is hard to believe if the CEO is genuine about what he said when this letter is only thing you can find in VAPE's website  The letter about the unproven sales in April is literally the only thing to be found on the website (Readers of this article may check for themselves).  If it is "committed to keeping its shareholders informed" I would expect the CEO to communicate on joint venture with GrowLife and the hiring or dismissal of key managers in recent weeks.

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This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward- looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.   


Content is researched, written and reviewed on a best-effort basis. Research report provided for informational purposes. This document, article or report is written and authored by Ujae Kang, Chartered Financial Analyst. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

A full disclaimer can be found by viewing the full analyst report.

BrokerBank Securities, Inc. is a member of the Financial Industry Regulatory Authority, CRD number #130116.

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