The trading session on Tuesday halted Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) surge as the stock declined more than 9% to close at $0.139. The stock experienced good run in last week leaving Friday’s trading session when it closed in red.
Pullback or bear run
The market participants believe that a healthy pullback after a sharp climb up on the charts is justified. Electronic Cigarettes witnessed the same movement last week. However, the investors have started getting wary as now ECIG shares have closed in red for three consecutive days. It indicates that somewhere the upward momentum is broken, and the stock is getting prepared to extend its decline.
Electronic Cigarettes was supposed to file its 10-K report for the period ended December 31, 2014 on March 16, 2015. However, the company later announced that it was unable, without unreasonable expense or effort to file its Annual Report for FY2014. It stated hat due to delay in completing financial statements and other disclosures it was forced to postpone the filing. Now, the company expects to report the results no later than fifteenth calendar day from the prescribed filing date.
The news of delayed filing prompted investors to book profits in Electronic Cigarettes’ stock. The financial performance would have triggered further momentum for company’s stock. The investors expected the numbers to be strong, but the delay on filing front has forced them to reconsider their positions.
The growth prospect of the Electronic Cigarettes seems bright as the e-cigarette industry in the U.S. is estimated to grow in next few years as many people now chose vapor products over traditional cigarettes. The company is a leading name in the sector and owns several trademarks including FIN, Victory, VIP, Vapestick and many others. Also, its recent proposal to provide the Board, the authority to execute a reverse split was approved, with more than 84% of the votes cast.