{"id":5325,"date":"2014-12-02T14:14:56","date_gmt":"2014-12-02T14:14:56","guid":{"rendered":"\/?p=5325"},"modified":"2014-12-02T14:31:03","modified_gmt":"2014-12-02T14:31:03","slug":"electronic-cigarettes-intl-group-ltd-otcmktsecig-bombs-after-the-holiday","status":"publish","type":"post","link":"\/articles\/electronic-cigarettes-intl-group-ltd-otcmktsecig-bombs-after-the-holiday\/","title":{"rendered":"Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) Bombs After The Holiday"},"content":{"rendered":"\n

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Friday’s session may have had limited trading hours but that didn’t stop traders from shifting the unprecedented amount of 637 thousand of Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG<\/a>)’s shares. The record traded volume didn’t mean that the stock had slowed down its fall though. On the contrary, the negative momentum got even stronger and ECIG<\/a> <\/strong>crashed by more than 32% ending the session at $0.62 per share. A new 52-week low of $0.605 also got posted. Just for the month of November the ticker has depreciated by nearly 83% and the picture gets even grimmer if you go further back the chart.<\/p>\n

On November 20 ECIG<\/a><\/strong> submitted their financial report for the third quarter of the year and although it showed a 41% increase in revenues compared to the previous quarter investors were far from impressed:<\/p>\n

• $4.3 million cash
• $28.8 million total current assets
• $68 million total current liabilities
• $15.9 million total revenues
• $41.1 million net income<\/p>\n

The balance sheet might have been a lot more encouraging if the massive net income wasn’t achieved through a $38.6 million gain on advisory agreement warrants. Not to mention that the negative working capital deficit actually got even bigger and from approximately $21 million for the second quarter of the year now stands at $40 million.<\/p>\n

ECIG<\/a> <\/strong>were trying to uplist to the NASDAQ <\/strong>national exchange but back in October they decided to postpone the IPO. In addition to the disgruntled shareholders this decision could also have a significant toll on their financials. At the end of May the company wanted to acquire Ten Motives but as part of the terms ECIG<\/a> <\/strong>had to successfully complete the uplisting process. Now if they still want to close the deal they will have to pay $1 million for moving the closing date from July 31 to September 30. Furthermore ECIG<\/a> <\/strong>will have to pay the sum of $16 129 a day for the months of October and November for not uplisting.<\/p>\n

The three acquisitions from earlier this year have resulted in an increased revenue generation but ECIG<\/a> <\/strong>still needs to show a lot of improvement in its balance sheet. The fact that at the moment their share price is nowhere near the minimum requirements for a move to a bigger exchange could also cause serious problems. Some investors might find the current market price an appealing entry point but the risks around the stock shouldn’t be underestimated. <\/p>\n","protected":false},"excerpt":{"rendered":"

Friday’s session may have had limited trading hours but that didn’t stop traders from shifting the unprecedented amount of 637 thousand of Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG)’s shares. The record traded volume didn’t mean...<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1114],"class_list":["post-5325","post","type-post","status-publish","format-standard","hentry","category-news","tag-ecig"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=5325"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5325\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=5325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=5325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=5325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}