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I am a private investor who has found a trading niche in the Cannabis sector. Stock trading brings me back to my old days as a sales account manager. I love the feeling of closing a good deal, or picking a winning stock. What I write about is simply for entertainment purposes only. I am not a... More
  • Big Things Do Come In Small Packages: MCIG 16 comments
    Feb 7, 2014 8:49 AM | about stocks: MCIG

    According to an Market Insider Article written last August, Judy E. Hong of Goldman Sachs Group, suggests the e-cig market could reach $10bn in retail sales over the next several years, up from $1bn in retail sales this year. E-cigs have become a viable alternative to cigarettes for many, not only because they are nearly 99% less harmful, but e-cigs offer a better economic bargain.

    The Revolutionary $10 Dollar E-cig

    mCig, Inc. (OTCQB:OTCQB:MCIG) manufactures and retails the mCig-the world's most affordable vaporizer priced at only $10. Designed in the USA-mCig provides a superior smoking experience by heating plant material, (including cannabis where legal), waxes, and oils delivering a smoother inhalation experience.

    The company just recently acquired Vapolution, Inc. which manufactures and retail home-use vaporizers such as the Vapolution 2.0. The Vapolution 2.0 is the only vaporizer with an all glass vapor path. This is a game changer in the industry, because glass is completely non-reactive. By separating the air from the heating element, the taste of vapor is left unaltered. Connoisseurs agree that the purity and the density of vapor through a wholly glass path is what makes Vapolution 2.0, one of the best vaporizer's on the market. Vapolution, Inc. since 2010 has generated revenues of over 1.2m.

    What makes MCIG an attractive investment opportunity is that they are one of the only companies in the " cannabis index " to be both SEC regulated, meaning it adheres to higher corporate standards, as well as having zero debt. MCIG, since falling to a low of $.068 this past November, has healthily and steadily climbed to a recent high of $.39, with a market cap of close to 98m. MCIG also has a manageable o/s count at 270m. The company recently produced an investor presentation, and also stated that they recently had their top sales day of $3,500. Before one just simply laughs that off, that is 1/3 the amount of Revenue they had all of last Quarter. And remember their core product sells for just $10. So that's roughly 350 units sold in one day.

    Not All Micro-caps Are The Same

    Anyone who has traded micro-caps, knows it is a breeding ground for companies and their CEO's, whose main objective is to make money through dilutive processes, with no regard to real shareholder value. Whose sole purpose of existence is to pay salaries, summer homes, and operating expenses of it's " shell " or " development stage ", going no where company. MCIG CEO, Paul Rosenberg, has decided that there is no company, apart from creating shareholder value. MCIG announced in December that they decided to reduce the authorized shares outstanding by 44% to 560,000,000. Their recent acquisition of Vapolution was a non-dilutive transaction in which they issued 5m shares representing 1% of their fully diluted capital structure. Mr. Rosenberg then decided to cancel an equal amount (5m shares) of common shares owned by him resulting in a net non-dilutive transaction to existing MCIG shareholders.

    On Monday, MCIG unveiled Vitacig, Inc. - a 100% owned subsidiary. Vitacig, Inc. intends to file for IPO with shares distributed to MCIG shareholders as free dividend. The result will be that every owner of (1) share of MCIG will receive (1) share of Vitacig, Inc. as a free dividend. Mr. Rosenberg decided shareholders should be, " rewarded for their loyalty and support ". I have a new nickname for MCIG's CEO. Robinhood!

    Today, MCIG announced it's first brand ambassador: Jordan Young, also known as DJ Swivel. Jordan Young, is a Grammy Award winning producer. Who has worked with Rihanna, Jay-Z, Kanye West, P Diddy, Ice Cube, Britney Spears, and the list goes on and on. MCIG is full steam ahead in becoming the world's most used and recognized e-cig on the market.

    Move Over Tech Boom, Cannabis Is Next

    MCIG is certainly the kind of stock one would add to their portfolio, and feel comfortable considering holding long term. I must admit I struggle with the current valuations of the stocks found in the cannabis sector, MCIG included. But the cannabis sector is one of the most bullish sectors trading on the market today. Thanks to Colorado becoming fully legal this year. And an American President, who doesn't shy away from his own experimenting with marijuana, and has recently stated that marijuana is less harmful than alcohol. To give even more exposure and pop to the sector, within the next few weeks Attorney General, Eric Holder, is going to publicly give banking the " yellow " light, so to speak, to work with legal cannabis businesses. Which is an obvious major shift in culture and policy in dealing with cannabis. The market has responded, and publicly traded companies like MCIG, is seeing an influx of investors wanting to capitalize on the green rush. So, my opinion on valuation, not only dealing with the micro-cap world in general, but the booming cannabis sector, seems to be whatever the market is willing to pay for it. And it is obvious investors are opening their pockets. Just remember micro-cap stocks involves greater risk and can experience high volatility. But for those on the sidelines who think these stocks will fade in the wind, my response is, just wait till election time come November, I can assure you, you ain't seen nothing yet.

    Conclusion

    MCIG, is a cannabis stock, with a sustainable business model, based on the expected growth of the market. A company that is committed to profitability, company and shareholder value, an will ultimately be one of the few to stand the test of time. The e-cig market is exploding, not just here, but abroad. MCIG currently distributes to over twenty countries and is becoming a leader in the industry. MCIG is a very likely acquisition candidate as well. The tobacco giant Altria, just acquired e-cig company, Green Smoke, for 110m. Fourth Quarter will show growing revenues and looks to maintain a clean balance sheet. The company continues to search for supporting core, revenue producing acquisitions and aligning themselves with the right partners. As well as evolving and it's product line. The company also announced the mCig 3.0 is due out Third Quarter and Vapolution 3.0 is due to be released Fourth Quarter.

    Disclosure: I am long MCIG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Additional disclosure: (Editors' Note: This article covers stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

    Themes: long-ideas Stocks: MCIG
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Comments (16)
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  • Guest10000
    , contributor
    Comments (7) | Send Message
     
    I believe the company is also debt free.
    7 Feb, 09:31 AM Reply Like
  • Canna Insights
    , contributor
    Comments (61) | Send Message
     
    Author’s reply » It's in there Guest, among many other positive
    fundamental and technical reasons, that's why
    am long.
    7 Feb, 12:40 PM Reply Like
  • Ridemotoxxx
    , contributor
    Comment (1) | Send Message
     
    I think you did a great job on this. I too believe Mcig has a bright future ahead. I wonder what they will pull out their hat when WA goes legal. I'm thinking they will get a lot of attention since they are based out of the next state going Live!
    7 Feb, 02:09 PM Reply Like
  • belgium
    , contributor
    Comments (1002) | Send Message
     
    Why did you change your nickname from Officerk to Canna Insights?
    Anyway, glad to see you changed from blind cheerleading to asking the right questions when looking at these companies and I hope you leave the pompoms routine for the other boards.

     

    I am long mCig with a nice chunk of shares averaged in around 0.09.

     

    One thing though:
    "Fourth Quarter will show growing revenues and looks to maintain a clean balance sheet."
    Don't expect too much from Q4 2013 because they only sold about 10k mCig 1.0 units as a test-case. Shareholders should be looking at Q1 2014 results for some good numbers.

     

    I hope the CEO jumps on the concentrates train, if he does, returns for shareholders will be stellar.

     

    Nice write up, keep it up.
    8 Feb, 07:56 AM Reply Like
  • Canna Insights
    , contributor
    Comments (61) | Send Message
     
    Author’s reply » I agree belgium, growing revenues, in that better than
    last Quarterly report..
    Which may not be much, but if they continue to sell
    out of their stock, which their site seems to indicate,
    than Q1 and beyond looks very promising.

     

    A company is only as good as the quality of management
    involved.
    MCIG CEO, Paul Rosenberg has impressed me enough
    to write this piece. I look forward to the company"s next move.
    Cheers!
    8 Feb, 01:32 PM Reply Like
  • Jasper85
    , contributor
    Comments (335) | Send Message
     
    Like I mentioned on IHUB, we should be expecting a lot of catalysts in the near future.
    1) Earnings soon? (mainly mCig 1.0 figs)
    2) Alan Brochstein interview with Mr Rosenberg(I believe)
    3) Availability of the black MCIG's again
    4) Launch of glass inserts
    5) Looking for more info on the upcoming launch/IPO of Vitacig
    6) 1:1 share dividend!!! Awesome, like MCIG loyal longs as a first base who know both companies from the start.
    7) New acquisitions / products for the new Vitacig (vitamins healthy oils etc.)
    8) mCig 3.0 scheduled to launch 3Q14
    9) Launch of a new line of Vapolution products branded as MCIG in 4Q14.
    We have a lot to look forward to as it seems that the MJ sector is forwarding a core pack of popular stocks.
    TRTC, PHOT, FITX, AEGY, SKTO, HEMP
    MCIG with actual sales and a lower float, great management still pretty undiscovered.
    Like belgium, I also own a good chunk of MCIG and a tad less of TRTC and will remain to do so as the news just keeps getting better.(might sell a couple to get a new car in this process though :) )
    glta, I think of the magical $1,00 PPS as a when, not an if.
    Cheers!
    9 Feb, 03:20 PM Reply Like
  • belgium
    , contributor
    Comments (1002) | Send Message
     
    If the CEO reads my comment and uses it, that new car will be a Lamborghini.
    9 Feb, 03:48 PM Reply Like
  • Jasper85
    , contributor
    Comments (335) | Send Message
     
    Haha, I'm too down to earth to drive a Lambo :) (doesnt fit in my garage)
    Was looking for a Volvo V40 actually.

     

    What are your thoughts on Vitacig products ?

     

    Greetings from Holland
    9 Feb, 03:57 PM Reply Like
  • belgium
    , contributor
    Comments (1002) | Send Message
     
    Well, you got my point :-)

     

    Just not sure the CEO is willing to cross that line yet.
    9 Feb, 04:09 PM Reply Like
  • belgium
    , contributor
    Comments (1002) | Send Message
     
    "What are your thoughts on Vitacig products ?"
    Can't say I'm a fan, but it is one step closer in the direction I would like the CEO to take things.
    But I am curious to see how this will play out off course and will not sell the dividend.
    9 Feb, 04:33 PM Reply Like
  • patient_investing
    , contributor
    Comments (30) | Send Message
     
    Thank you for the great article. I have an mCig and it works great with high quality crumbly wax.
    11 Feb, 10:26 PM Reply Like
  • shorthound
    , contributor
    Comments (16) | Send Message
     
    I have some on order, can't wait to see them.
    14 Feb, 03:18 AM Reply Like
  • 8866171
    , contributor
    Comments (22) | Send Message
     
    Canna,
    Any thoughts on SPLI? They're in a similar market to MCIG but more e-cigarette focused with a lower market cap and supposedly much higher revenues. They're currently doing a reverse merger, something that in the past, has raised a red flag for me. Not pumping SPLI, but curious if you've looked at it.
    16 Feb, 10:54 AM Reply Like
  • Jasper85
    , contributor
    Comments (335) | Send Message
     
    Ah, the former aviation company with numerous reverse split merging with a ecig company.

     

    If management was bad at delivering their initial businessmodel, now they merge their air defence company with an ecig company, yes they would do much better now!
    No, this is not just about grabbing the simple money here, no sir...
    Complete management takeover.

     

    "AvWorks Aviation Corp. (OTCQB: SPLI), (the "Company", or "AvWorks"), announced today that it has entered into an Agreement of Merger and Plan of Reorganization ("Merger Agreement") with the Vapor Group, Inc., a Florida corporation ("Vapor Group") under which the Company will issue 750,000,000 shares of its common stock for 100% of the issued and outstanding shares of Vapor Group from the Vapor Group Shareholders."

     

    Why didn't they file for IPO themselves instead of a merger with an aviation company ?!?! Cause an IPO takes longer then merging with a badly performing company, just a shell to try and get rich in these days of the Green Rush.
    750.000.000 shares vs the 270.00.000 of MCIG.

     

    Glad to be an MCIG long, it's not all about the product, think about this greedy management as well.

     

    CEO has 165,000,000 of common stock, lol
    Other management owns over 25,000,000.

     

    "The Reverse Split will not decrease the authorized number of shares of Common Stock which will remain 2,000,000,000."

     

    Cheers and let's not forget the FINRA warning guys.
    16 Feb, 11:10 AM Reply Like
  • Canna Insights
    , contributor
    Comments (61) | Send Message
     
    Author’s reply » There are a few traded companies looking to get
    into the Green Rush by evolving into the e-cig market.

     

    I say good luck to them.
    MCIG is clearly the Leader of the pack, and is successfully becoming a leader in the e-cig industry.
    The recent addition to the home-based vape market with
    their Vapolution acquisition makes MCIG the clear winner.

     

    I look forward to the next move by MCIG CEO Paul Rosenberg. Mr. Rosenberg is expected to have an
    interview/webinar with MJ analyst Alan Brockstein very soon to discuss the company, and possibly some new company developments.
    17 Feb, 09:15 AM Reply Like
  • Tonya12345
    , contributor
    Comments (2) | Send Message
     
    I had a phone call out of the blue one day. He told me about mcig.Didnt catch his name, or anything, the stock was at .35.
    24 Mar, 10:12 AM Reply Like
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