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Yesterday’s session was nothing short of a complete disaster for the stock of Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG<\/a>). In just six and half hours the ticker managed to wipe close to a third of its value, closing at $0.171 per share. Investors were so eager to shed their holdings that the daily volume reached 5.1 million traded shares. The last time ECIG<\/a> <\/strong>registered a bigger daily volume was over a year ago in April 2015. Yesterday’s intraday low of $0.133 marked a new 52-week low for the stock.<\/p>\n What sparked the unmitigated sale of shares by investors were the quarterly results for the first three months of the year that ECIG<\/a> <\/strong>announced after the end of Monday’s session. Are the numbers really that depressing, though? Opening the quarterly report reveals that as of March 31, 2016, ECIG<\/a> <\/strong>had:<\/p>\n • $950 thousand cash While having nearly a million in cash reserves and close to $12 million in sales would be a truly impressive achievement for many of the other pennystock companies for ECIG<\/a> <\/strong>these results are truly disappointing. Compared to the same period last year the net sales of the company show a meager increase of just 1% while the gross profits is up by around 5%. The fact that the operating expenses of the company were cut in half on a year-over-year basis is simply not enough to offset the underwhelming revenue growth.<\/p>\n During the conference call that took place on Monday ECIG<\/a>‘s <\/strong>management attributed the disappointing results to the limited funds available to the company, which stifled their growth opportunities, and the high interest rates on some of ECIG<\/a>‘s <\/strong>outstanding debt. According to CEO the current quarterly interest payments stand at around $2.7 million. ECIG<\/a> <\/strong>suffered another huge blow when in January they lost Walmart as a customer.<\/p>\n
• $10.1 million total current assets
• $108 million total current liabilities
• $11.7 million net sales
• $20.4 million net loss<\/p>\n