Wednesday, January 7, 2015

$VTCQ Will mCig's Vita Cig Spin Off Increase $MCIG Share Price?

With the upcoming spin off of Vita Cig coming close to completion as far as the initial trading of VTCQ on the stock market, the question becomes is the opening value of Vita Cig already reflected in the share price of mCig.

mCig retains a large ownership position in Vita Cig after this spin off, and if the share price of Vita Cig rises, its investors will reap further rewards.

Since there is no market value yet for Vita Cig that is readily determinable, it is hard for mCig to properly reflect that in its financial statements.

In my opinion, there is already a value assigned to the Vita Cig shares that is modest, perhaps around 5 cents per share.  Anything beyond that would be a boon to investors of both companies.

With mCig shares trading around 17 cents per share, adding in say 10 cents a share for Vita Cig would bring mCig back to trade in total to about what it was at this time last year before the large increase in share price.  Obviously, that was then followed by a steep decline that has brought us here.  I believe this trend will reverse, however, and I am long both shares while expecting great things.

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