Vape Sellers Go Up in Smoke
If vaping stocks can make it through this, they can make it through anything. E-cigarette firms have been ordered to stop advertising entirely in the US as the vaping community contracts a fatal mystery disease.
Many investors thought that for the new age of e-cigarette makers, regulatory blacklists would prove a dying habit and a dirty label wouldn’t stick. However, the US is in a youth nicotine crisis. Congressmen and women have lost their sense of humor, and hearings are taking place to compare the marketing practices between e-cig companies and the traditional tobacco firms already held in contempt. Fears of a regulatory crackdown have lingered since day one, and now those fears are being realized!
The majority of e-cigarette makers aren’t on the stock market. However, since British American Tobacco took a curious puff of the budding industry a few years back, e-cigarette start-ups have become must-have accessories for alcoholic beverage and tobacco giants.
Investors’ dreams of a vaporous, marijuana-infused future are going up in smoke, and the collapsed merger of tobacco incumbents Philip Morris (PM) and Altria serves as proof. The outbreak of this rogue disease has claimed nine lives already, and it could further bring down multiple e-cig companies. Perhaps PM and Altria shareholders dodged a bullet?
Let’s remember one thing, that the meteoric rise of e-cigarettes followed dozens of upbeat reports from people using them to beat smoking, and the demand is still there. The vaping industry is down, but it’s not out!