Electronic Cigarette Stocks To Consider
A year ago, most investors would not have given e cigs a thought. The market was growing, but would it last long enough to perform? Could investors really make any money out of these products in the short term?
The long term was (and still is) a bit dicey for the electronic cigarette industry given that the FDA has yet to perform a complete survey and form a regulatory structure for the industry. There is a way to invest, though, and to do it safely. Long-sighted financial gurus have already come to the same conclusion and are making money from smokeless cigarettes.
E Cig Stocks that Won’t Blow Up in your Face
Bad press is doing terrible things to the reputation of e cigs, never mind the fact that half a million Americans die of smoking related illnesses yearly. One exploded cigarette does more damage to e cigs than twenty deaths due to lung cancer. Tobacco companies are established players and still big business. E cigs are taking some of their market share, but Big Tobacco is fighting back by creating their own e cigs and becoming majority shareholders in existing companies.
If you want to invest in the e cig market without taking a huge risk, invest in a tobacco company that has partnered with one of the major e cig brands. This could be Lorillard which bought BluCig in the United States and SkyCig in the UK. In their respective countries, these brands are among the top sellers.
Altria owns a substantial interest in the company Green Smoke, another top-seller and highly-rated product with vapers (as e cig users fondly refer to themselves). They also released their own e cig line: Mark Ten.
E Cigs by Big Tobacco
As you can see, the e cig industry is smartening up, entering the industry not just as investors but as e cig manufacturers. Another example is the release of Vype and of Vuse by British American Tobacco. A limited number of consumers, mainly in Colorado, have had access to Vuse thus far while Vype is another UK product.
The bad news for Big Tobacco is that, compared to products made by e cig companies, their e cigs frequently receive poor ratings by consumers and experts. If the FDA pulls the noose too tight on electronic cigarettes, however, Vuse and Mark Ten might not have much competition.
Buy into E Cigs Directly
Months have gone by since Big Tobacco bought their shares in the new electronic order. The financial world has watched, anticipating the capitulation of independent e cig companies to big business and public suspicion. But electronic cigarette manufacturers around the United States and the rest of the world have rebelled against expectation to become bigger than ever in 2014.
Firms such as Vaporfi were floated on the stock market to major acclaim. Okay, they aren’t as big as Microsoft, but Vaporfi is one of the top selling brands of electronic cigarettes out there right now. Vapor Corp. is another firm that plans to catch up with tobacco giants.
You can invest in e cigs, but here is a tip. Don’t put all of your cash on one number. It would be great for vapers to think that by supporting independent industry, you can snub your nose at Big Tobacco. But if you aren’t careful, the rustle of bills will be louder in their camp than in yours.
Play the stock market with caution, and keep an eye open for new players as the industry grows. Many firms are too small to be floated publicly, but after the FDA finishes pruning, those that remain will grow stronger.