MO , Reynolds American RAI , and Lorillard Inc. LO all jockeying for position in the fast growing sector e-cig sector. Vapor Corp VPCO achieved record revenues for both the fourth quarter and year, ending December 31st and has third greatest distribution in USA.
As I had mentioned in a previous article , Altria Group NYSE: MO , Reynolds American NYSE: RAI , and Lorillard Inc. LO are all jockeying for position in the fast growing sector e-cig sector.4. How To Identify Stock Market Direction (Trends) Part 1
Blu eCigs and their other product lines are the most popular selling devices in America - by a wide margin. Not to be left behind, new e-cig products from Reynolds and Altria launched with huge marketing campaigns. Reynolds offers Vuse, while Altria offers MarkTen. Altria also recently purchased Green Smoke Inc. With such dramatic growth projected, and dozens of other e-cig companies vying for a piece of the pie, I predict more acquisitions in this space -- especially if Reynolds or Altria want to close the gap on Lorillard's massive market share.
The Battle for the Electronic Cigarette Market
One company I see as a high-potential takeover target is Vapor Corp NASDAQ: They've been in business since when the company acquired e-cig distributor Smoke Anywhere USA. First, I think it puts pressure on Big Tobacco to come at them with an early takeover bid. Its products are in over 60, retail locations throughout the US and Canada. To compare, Vapor Corp.
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In addition, Vapor Corp. This kind of distribution is a huge plus. Rather than try to cold-pitch their house brands to retailers, the bigger firms could leverage Vapor's existing relationships to introduce additional products down the road -- a far easier task to accomplish.
Second, despite being fully reporting the company has a limited following because it currently trades OTC.
A move to the NASDAQ opens the door to a new world of new investors and institutional buying which, in my opinion, will push the share price higher. I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Long Ideas Short Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Picks.
This Small E-Cig Stock Could Get Bought Out Apr. Summary Altria Group NYSE: Buy Vapor Corp VPCO today as I see it as a high-potential takeover target.
Lorillard was a first-mover, acquiring existing e-cig producer Blu in Top E-Cigarette Stock To Buy Vapor Corp. Investing Ideas , Long Ideas , Consumer Goods , Cigarettes. Want to share your opinion on this article?
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