Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) continued with its surge in share prices on Thursday’s trading session. The share prices surged more than 30% to close at $0.142. The latest push in share prices can be the end of the Bull Run that commenced two weeks ago. The company’s share prices returned to peak prices that it dropped out two months ago. The investors are cheering the ascent of share price and its return to prominence. However, it is important to assess the positions in Electronic Cigarettes after the sharp jump in share prices.
No specific reason
Electronic Cigarettes share prices are clearly on the rise. However, there is no apparent reason behind the rise in prices. There are no new filings or PR announcement of positive accomplishments that could encourage investors to pour in their money in the company. Also, the latest filing available were proxy statements that urged Electronic Cigarettes investors to support Company’s decision of increasing authorized share number.
The poor performance
The electronic cigarette industry is expected to underperform the broader market meaningfully in 2016. The market has remained under pressure due to awareness campaigns. It has not only hit the normal cigarettes industry but also has adversely affected the electronic cigarette companies including Electronic Cigarettes. The problems have resurfaced again as retail chains have started removing tobacco goods from their inventories as pharmacy firm CVS Health Corp (NYSE:CVS) did in 2014.
The future ahead
Amidst ongoing problems, Electronic Cigarettes is compelled to find new ways of tapping markets. It can follow the big players and can expand its offerings in overseas, or can enter into other unrelated industries all together. The technical’s are supporting the price momentum, and it suggests more gain in coming days. However, there is no improvement in fundamentals, in the absence of which company will fail to sustain gains in the longer term.