E-cigarettes are a hot craze, and the consumer demand for these electronic “cigarette substitutes” is growing daily. Therefore, many savvy men and women are deciding to invest in e-cigarette stocks in order to boost their chances of enjoying significant dividends when stock prices for these exciting gizmos go through the roof. While investing in stocks is always a gamble, choosing stocks for e-cigs may be a great way to improve your chances of accessing a truly successful stock investment.
To help you learn the fundamentals of how to invest in e-cigarette stocks, we’ve created a practical and detailed guideline.
What are E-cigs?
E-cigs are electronic devices which simulate an authentic smoking experience. These devices work via water vapor and batteries, so they are truly “smoke-free”. Most electronic cigarettes feature a red light at their tip, which is illuminated when a user “takes a drag”. Cartridges or juices are used to deliver flavor and/or actual nicotine. Some users prefer nicotine-free e-juices and cartridges, while others prefer to “smoke” real nicotine. E-cigs come with atomizers which turn e-juice (or cartridges) into water vapor.
While the jury is still out with regard to the safety of these devices, most former tobacco smokers who switch to e-cigs feel healthier because they’ve made the change, possibly because they believe that e-cigs are less damaging to their lungs. In time, there may be more research available about the safety of these products. Right now, when you invest in e-cig stocks, you’ll be gambling on their safety as well. E-cig manufacturers cannot market their products as “safer” alternatives to smoking real cigarettes, because these products haven’t yet been fully assessed by governing bodies.
Instead, marketing gurus stress the pleasurable elements of using e-cigs, such as the range of flavored e-juices and cartridges available (from Coca-Cola flavor to classic Marlboro to cherry to caramel and beyond), as well as the convenience of smoking water vapor (i.e. you can do it inside without getting in trouble, at least, in most environments).
Be Aware of Potential Pitfalls
One potential drawback to be aware of is that the federal government may impose much stricter rules on e-cig manufacturers in the future. If this happens, some companies may fold, simply because they lack the capital (or desire) to comply with tougher regulations. In addition, Big Tobacco may get in the game. If this happens, and the biggest “real” cigarette manufacturers in the world try their hand at making e-cigs, they may dominate the market, thereby pushing smaller companies into the fringes. After all, smaller companies will surely not be able to compete with the advertising budgets of the biggest players in the tobacco industry.
Harsher regulations and the advent of production of e-cigs by Big Tobacco companies will not happen overnight. In other words, there is still time to invest and earn profits, whether these changes actually occur or not.
Choose Dependable Stocks
The savviest stock market investors do tons of research before risking a single dime on shares. This typically means choosing a few prospective stocks and then researching them thoroughly. Luckily, the power of the World Wide Web makes it very simple to access tons of vital information about e-cigarette stock types. So, do make a point of researching products with a fine-tooth comb before investing in shares.
You should be looking for problems from the beginning. For example, if a specific model and brand of e-cigarette has malfunctioned or otherwise triggered litigation by a customer, you are wise to stay away, at least until a new iteration of the device (which is hopefully “bug-free”) comes onto the market. Conversely, if an e-cig gets rave reviews from real-life customers, it’s probably safe to invest in it, as long as its stock price patterns show good growth and development over time.
Gathering information about the companies which sell shares in their e-cig concerns is all about looking up press releases, company prospectuses, Better Business Bureau ratings, stock quotes (past and present), customer reviews and related data. In other words, in order to pick a winner, you will need to consider all of the contenders carefully and then place your bets.
It’s not just about the product, after all. It’s also about the company’s business reputation, customer service policies, pricing and so on. So, there are tons of variables to consider. Naturally, growth, in terms of sales and profits, as well as overall market share, should be a key consideration. However, it’s not the only thing that you should think about.
Total sales of these devices over the past year are estimated at over two billion dollars, and the amount of retail sales is expected to grow exponentially in the future. Therefore, buying e-cig stocks while they’re still relatively cheap may lead to significant profits down the line.
Know Your Limits
No matter how “safe” an e-cig stock appears to be, you need to know that investing is a risk. Therefore, you should never risk more than you can afford to lose. By analyzing your financial situation and determining how much capital you have to put into the purchase of e-cig stocks, you’ll be able to protect yourself in the event that your investments lose money. After all, even stock market whiz kids and seasoned pros lose out sometimes. You can’t win them all.
Once you’ve determined the amount of money which you can safely put into these stocks, you’ll be one step closer to making an investment. With any luck, you’ll be able to enjoy dividends, which you may then use to buy more stocks or to build a nice nest egg.
The potential to win big on this type of investment is definitely there. There’s no doubt about that. People want to buy e-cigs and more and more of them will purchase these devices over time. In addition, they’ll need to purchase accessories, such as replacement atomizers, e-juices, cartridges, chargers and cases. It’s a growing market and it has a lot to offer.
Is E-Cig Stock Investment Right for You?
Now that you’ve gotten some tips on how to invest in e-cigarette stocks, you’ll be ready to decide whether or not taking the plunge is the right decision for you. By providing you with an overview of this niche of the marketplace, as well as some tips on vetting prospective e-cig companies before you invest in their shares, we’ve hopefully made it simpler for you to get started with this form of speculative investment.
If you believe in the power and potential of electronic cigarettes, you are definitely not alone. Every day, more and more people are discovering the pleasures of these devices. Whether these new customers utilize e-cigs as smoking cessation aids, or simply want to enjoy “smoking” indoors or in areas where “real” smoking is banned, they are getting real value from these devices. However, all e-cig products and companies are not created equal.
Now that you have the tools to find the best firms, you’ll be ready to move forward. By investing a safe and reasonable amount that doesn’t put your financial security in jeopardy, you’ll be taking a calculated risk, rather than a great big gamble.
You can find e-cig companies online, by performing quick and simple Google searches. Companies which trade their shares to the general public will be found at stock exchanges worldwide. For best results, invest in companies that are based in your home country.
Once you’ve purchased your stocks, make a point of checking stock price shifts on a regular basis. After all, making money in the stock market is all about intuiting when to get in and when to get out. Buying low and selling high is the key to making money fast.