VAPE HLDGS INC (OTCMKTS:VAPE) Breaking Out As Vaporizer Market Expands

VAPE HLDGS INC (OTCMKTS:VAPE) is finally ticking up after coming under pressure from short sellers in the first half of the year. Over the past one month, the stock has gained more than 50%, as it continues to make a comeback after dropping to all-time lows.The stock has seen its average trading volume surge to highs of 12.5 million as it continues to trade in a tight $0.0054 to 0.0067 trading range. With a market cap of $3 million, the stock has a 52-week range of between $0.0015 and $0.0199. VAPE Daily ChartThe recent rally does not come as a surprise given that investors are starting to take note of the company’s long-term prospects. Vape Holdings has emerged as a breakout stock heading into 2018 given the strong fundamentals supporting its recent rally.In the run-up to the legalization vote, a lot of marijuana focused companies spiked to levels never seen before as investors jostled for positions in the fast-growing sector. Fast forward, the wave has slowed down and a lot of companies have taken a hit on trading on speculations rather than fundamentals.Vape Holdings has sought to differentiate itself from the competition by making important strides towards building a long-lasting brand with Vape shops online. The efforts are slowly paying off, if recent renewed investor interest is anything to go by.Before we look at what could be making the stock to move upwards let's analyze Vape Holdings business operations.Vape Holdings Business OverviewVape Holdings is an acquisition and development company with operations in the vaporizer industry. The company designs, markets and distributes ceramic vaporization products. It also offers blended ceramic vaporization for torched, electronic and portable vaporizers.Hive Ceramics is the company’s premier brand that brings to market medical and food grade ceramic, with countless design and crossover capabilities. The product can be used in a range of applications including electronic cigarettes and for smoking marijuana.The company strives to provide consumers with the healthiest and most sustainable vaporization options.Growth CatalystVape Holdings is destined for accelerated growth thanks to the marijuana legalization drive in North America. Demand for vaporization products should continue to grow as the recreational marijuana market expands.The company has already positioned itself to take advantage of the expected growth. Partnerships with industry leaders should allow the company to continue operating and expanding its premier brand as it eyes a competitive edge on the sale of vaporizers.Vape Holdings is one of the few companies that has benefited from the cannabis boom even though it does not grow cannabis. The company has become a key player in the sector as recreational marijuana users look for ways to partake their products.As medical cannabis market expand the company’s target consumer base should grow, allowing it to generate significant sales with the Hive brand. The company is currently pursuing collaborations and partnerships at various levels of the industry.

"HIVE launched the ONYX 14mm Domeless in 2016 and its quality has exceeded all of our expectations. The ONYX is the only Silicon Nitride application in the industry and helps to further cement the position of HIVE as a leader in innovation and design. We are working to release new products in this material before the end of 2017,” Vape Holdings in a statement.

Capital StructureBack in 2014, Vape Holdings commanded a hefty $400 million market. Fast forward things have changed and the company is now worth $3 million. However, that does not mean that the company is on a decline.The company has been working round the clock to stabilize its capital structure by initiating cost-cutting initiatives as it continues to trim its debt holdings. Under the able leadership of Chief Executive Officer, Benjamin Beaulieu, Vape Holdings has regained its footing on the execution of a new capital structure.More than 90% of the company’s convertible debt has been restructured, the company having also secured a new equity facility for financing expansion and development projects. The efforts are slowly paying off, the company’s underlying fundamentals for operational and capital structure having significantly improved.Bottom Line There is plenty of money to be made as more states legalize medical and recreational marijuana use. Vaporizers should continue to enjoy strong demand as people shift away from traditional cigarettes. The fact that vapes have historically been low cost and low tech products means Vape Holdings is well positioned to generate significant sales with the sale of its Hive product line.The vaporizers market is currently valued at $10 billion. Vape Holding getting a small piece of the pie with its aggressive investments, should lead to significant returns for investors on the growth of positive cash flow. However, the company faces stiff competition from other companies also gunning for market share.Namaste Technologies is one of the big players in the sector. The company expects revenues of $11.7 million from vaporizers this year, which should increase by 35% by 2020. Top vaporizers manufacturers expect annual growth rates of more than 100%.Vape Holdings will have to ramp up its efforts when it comes to development, sales, and marketing of vaporizers if it is to enjoy accelerated growth going forward.We will be updating our subscribers as soon as we know more. For the latest updates on VAPE, sign up below!Image courtesy of ecigclickDisclosure: We have no position in VAPE and have not been compensated for this article.