Vapor Hub International Inc (OTCMKTS:VHUB) climbed over 50% at one point during the trading day and ended the day with a 28% gain. Over the last two trading days, volume has been significantly above average with over 400,000 shares trading hands which is more than 4 times its average daily volume. VHUB broke out of its trading range in a big way (see chart below) and is primed for more gains given its recent announcements and execution.
VHUB just announced that it has released a new product and it is one of the first manufacturers in the world to introduce a new technology that allows its atomizer to change colors when heated. The product is the Limitless atomizer that changes colors. Currently, it can change colors from red to green when heated and room temperature is black. Over 5,800 atomizers were sold within the first 10 days of the product release.
If sales can continue at its current run rate of 580 units per day, VHUB could achieve over $3.4 million in quarterly revenues and over $13.5 million. VHUB would more than double and potentially even triple its quarterly and annual sales. Even if it sold only 180 units a day, it would double revenues adding $1 million per quarter or $4 million annually.
In addition to these new product release, VHUB announced that its sales, gross profit, and gross margins all improved significantly for the first six months of 2015 in the comparable period in 2014. Revenues surged 30% from $2.499 million to $3.257 and gross profit climbed 33% from $1.086 million to $1.454 million. Sales increases were the result of increased wholesale distribution of VHUB products and direct distribution to retail stores.
VHUB is a California-based company engaged in the development, production and sales of electronic cigarette products, including high quality e-liquids, custom mechanical mod e-cigarettes, and unique personal modifications.
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VHUB is currently trading at a $3.2 million market valuation. VHUB market cap is less than its annual revenues which is extremely cheap and reflects that VHUB’s shares may be significantly undervalued. VHUB has tangible products and is growing rapidly. Its new atomizer should grow revenues even more. The company has $1.41 million in total assets and $2.12 million in liabilities. This exciting story is just beginning and this won’t be the last we hear about VHUB.
We will be updating on VHUB when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with VHUB.
Disclosure: we hold no position in VHUB either long or short at the publication of this article and we have not been compensated for this article.