Friday, December 12, 2014

Based on Around 100 Million Shares O/S $ECIG Valuation Irrational

Based on what I have seen on iHub today, there are around 100 million shares outstanding of $ECIG right now.  That would give it a market cap of less than $10 million based on today's closing price.

Per the company's most recent earnings report, so far this year in three quarters the company has reported at least $30 million in revenue.  Even assuming only $10 million for quarter four, the company will have at least $40 in revenue this year and it is growing fast.

The e-cig market is expected to grow 10 fold per a Wells Fargo analyst, to about $10 billion per year in three years.

This market valuation currently of $ECIG is irrational.  How can a company with $40 million in revenue sell for less than .25x full year revenue?  For that matter, someone can buy the company on the cheap for $10 million.  Either that or the share price right now is completely out of whack.  My guess is the latter because if someone did try to take the company over at 10 cents a share, the shareholders would be in the right with a heavy backlash.

Long $ECIG and I feel this can be a 10 bagger in a short period of time.

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